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Report: Advertisers urged to invest in cinema

28 Nov 2016  |  Newsline Staff 
Report: Advertisers urged to invest in cinema

The findings of a new report from Digital Cinema Media (DCM), Millward Brown and Benchmarketing has argued that many advertisers are currently under-investing in cinema as a brand-building medium.

The report, Building Box Office Brands: Volume II, suggests that retail, food FMCG, telecoms, travel & transport and all services brands could optimise their whole ad campaigns and see an increase in the returns delivered at an overall level if they boosted investment.

Unveiled at DCM's 2017 Upfronts on Monday, the research states that travel brands should look to increase cinema's share of the budget to 11%, from their current average share of 4.9%. At the higher share, brands could see a Revenue ROI (at total campaign level) of £2.70 for every £1, compared to £1.10 when cinema takes a smaller share of the campaign budget.

Similarly, the optimal share that food FMCG advertisers should invest into cinema is 6.8% - compared to the current average share of 2.8%, the authors state. Investing at this higher level would "drive optimal returns" from the overall ad campaign, delivering £0.50 for every £1 invested.

"We know that for many advertisers the ultimate measure of success is whether the campaign is able to deliver ROI," said Karen Stacey, CEO, Digital Cinema Media.

"The last cinema industry ROI study was released in 2012 and given the level of change across the media industry since then we were keen to understand cinema's impact on campaign ROI in today's landscape.

"While understanding the effectiveness of individual channels is important, we are also aware that advertisers want to understand how to make their media mix more effective. With this in mind we asked Benchmarketing to investigate whether increasing cinema’s share of the campaign budget could optimise the whole campaign, creating a more effective mix and deliver stronger ROI."

The report also notes that cinema works much more effectively when it is used alongside television.

"By providing advertisers with the chance to add incremental cover amongst desirable, upmarket audiences and giving brand's great creative work the showcase it so rightly deserves, cinema can help build brands as part of an effective multi-media campaign that ultimately stimulates brand growth," Stacey said.

Cinema adspend rose 13.7% year-on-year to £45m in Q2 2016 according to AA/Warc. This was 1.8 percentage points ahead of forecast and puts cinema on course to reach a total of £248m for 2016 - up 3.5% on 2015's record high.

Further growth of 2.6% is anticipated in 2017.

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