Celebrity Marketing
Overview
• Talent agencies negotiate salaries and
other perks for celebrities.
• These agencies find and secure the best
possible roles, money, and other benefits
for actors.
Factors Affecting Salaries
• Popularity of Celebrity
• Position in Career
• Whether or not the actress/actor has just
made a blockbuster film
• Overall Public Perception
– Ex. Serious films/Art Films generate lower
salaries
External Factors Which Determine Demand
• State of the Nation
– Ex. 9/11, Spiderman
• Time of Year/Season
– Ex. Independence Day premiered 7/4
• Economy
– Ex. Disposable Income
External Factors Determine Demand cont’d
• Public Opinion – ACNielson Study
– “Positive reviews – almost half of all movie
viewers were influenced to see a film by a
positive review.”
– “While only 29% said a negative review
persuaded them to skip a movie.”
– “Only 1/3 decided on a film based on its
positive box office results.”
Determining Public Demand
• Marketing Research uses
– Surveys
• www.gozing.com
• ACNielson Study – survey of 10,000 households
– Opinion polls
• http://www.the-movie-times.com/thrsdir/question.html
– Test Screening
• Ex. Ghost
• Secondary Research
– Previous films, actors, directors, etc.
Results of Marketing Research
• MR determined Titanic and Forrest Gump
would be huge hits
• Biggest impact on the budget is quality
determined by director and producer
– Cast/talent, equipment, editing, location
Movie Budget Statistics
• http://www.thenumbers.com/movies/records/budgets.htm
l
Gross Earnings (millions)
•
Top 5 Male Actors
1.
2.
3.
4.
5.
Harrison Ford - $118.6 (25 films)
Tom Hanks - $109.4 (25 films)
Mel Gibson - $104.3 (30 films)
Robin Williams - $102.9 (27 films)
Tom Cruise - $100.4 (20 films)
Gross Earning (millions) cont’d
•
Top 5 Female Actors
1.
2.
3.
4.
5.
Julia Roberts - $86.9 (21 films)
Carrie Fisher - $79.2 (17 films)
Whoopi Goldberg - $62.5 (25 films)
Drew Barrymore - $60.3 (23 films)
Sally Field - $56.3 (24 films)
Questions?
Why is marketing research
significant in the process of
determining a celebrity’s salary?
Give an example of a movie
that was expected to be a hit
but resulted in a flop. So you
think that marketing research
was conducted properly or at
all?
The producer of Titanic is
thinking about producing
Titanic II, but wonders what
the audience response would be to
the sequel. Define the
management decision problem.
Define the marketing
research problem
corresponding to the
management decision
problem you have identified.
Based on your problem definition,
identify two research questions
and develop two hypotheses for
each question.