Digital ads top TV in movie studio marketing mix | Media Investment | Business | News | Rapid TV News
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One of the prevailing business trends for 2018 has been the continued drift of marketing dollars towards digital platforms and away from traditional TV,  and a new study by Neustar has confirmed this pattern.
neustar 16Dec2018
A new media effectiveness report identity resolution technology provider has revealed that while television was the biggest driver of ticket sales but not the most efficient one. digital media drives the biggest sales impact with a 46% contribution to box office revenue. It analysed over 70 US films across 8 different marketing channels — TV, online, display, online video, paid Facebook advertising, out-of-home (OOH), radio, print and paid search — representing $1.8 billion in total marketing spend.

While it stressed that TV has not lost its relevance per se, and actually noted that TV remains a “powerful megaphone” with 82% of marketing budgets dedicated to the channel, it was only responsible for 42% of media-driven box office revenue.

By contrast, digital media represented only 14% of the marketing budget but drove 46% of box office revenue. Neustar calculated that if studios shifted just 6% of TV spend over to digital media, they would see a 7% increase in box office revenues.

However, highlighting what is the next big trend, the most efficient paid digital media was found to be paid Facebook media.

On average, Neustar found that Facebook paid media comprised 4% of movie media budgets but delivered an average of 9% of opening box office revenue and 20% of marketing-driven sales. For every dollar spent on the social media, studios saw a close to $8 return on ad spend ($7.91 ROAS) while Facebook paid media delivered 6X more returns than media overall in the action and family genres. Among the top box office performers, it delivered 7X more returns than media overall. Facebook paid media drove 6% of film-specific Google search activity and 50% of viral film impressions.

Neustar believes that the trends revealed in its report has clear implications for movie marketers. It advised that they should continue investing in TV but capitalise on digital efficiency by shifting a portion of their TV dollars into digital media.