How Does Marketing Affect Movie Box Office Sales?

The box office sales are strongly influenced by the marketing on the movie box office. In the U.S, as much as $30 million is being spent by the studios for marketing an average PG-13 action film. Marketing is a factor that can make or break a movie, so it becomes quite important for the marketing executives to spot the right place to invest in an advertisement in order to obtain the best outcome. They intend to find the right media channel and choice so as to make it a value for money deal.

Movie marketers are not able to connect specific marketing activities to the sale of tickets as there are a number of factors which impact a ticket buyer. Thus, the particular marketing activities that have the greatest impact is not clear enough.

From various studies, it has been found that television plays a significant role in fetching the movie marketers huge proportion of revenue. But, it is essential to note that at a particular point, excessive spending on TV advertisements leads to diminishing outcomes. Thus, it is essential for the advertisers to identify this particular point, after which the dollars should be spent in some other advertising mode.If this method is adopted, then the market-driven revenues can be enhanced by 34% which is about $15 million in case of a standard PG-13 action movie.

A study was conducted during 2012-13 using a powerful software app which used advanced marketing analytics. It measured theeffect of sales and revenue across various marketing channels by considering the external factors such as the change in the economic conditions, bad weather conditions etc.

It was found that an average of over 82% of the US advertising was on TV and other digital media formed about 10%. Thus 64% of revenue was generated through the TV. Social media sites paid searches, display and video networks etc form the digital media.

Keeping the advertising expenditures constant, it was found that the digital media was thrice more impactful than TV in the revenue generation. Taking this into consideration, an enhancement in the revenue would have been possible through an increase in the digital ad expenses by 35% of the marketing mix.

The sample that was under analysis depicted an average of about 3% of the advertising expenses on the print media. The ad-revenue could have been increased by doubling the expenses on print to 6%.

Besides this, it was also observed that the revenues obtained from the online video ads exceeded the expenditure made on them. In this study, a 4% of advertising expenses in online video generated a huge 16% revenue. Thus a16% marketing-driven sales would have been possible by diverting 10% of the advertising expenses from TV to online video for a standard PG-13 action movie, during that period of analysis.