Cinema boosts effectiveness of ad campaigns by delivering
three-fold revenue return on media investment
London, 11 September 2012: BrandScience, the business and marketing
effectiveness arm of Omnicom Media Group, has shared its findings on the
Revenue Return on Investment for cinema media spend across Europe today
at an event hosted by the Cinema Advertising Association.
The Europe-wide study, commissioned by Screen Advertising World
Association (SAWA) and Cinema Advertising Association (CAA) shows that
Cinema advertising outperforms print and outdoor across Europe with a
Revenue Return on Investment (RROI) of €3.07 and an overall carryover rate
of 48%. This means that if an ad spend of €1000 delivered 100 sales in the first
week, it would drive 48 in the second, 23 in the third and 11 in the fourth week
following exposure. In the UK, Cinema delivered a £2.84 RROI for every £1
invested and the best carryover rate of all media nationwide at 72% per
week.
Case studies from the BrandScience Econometrics Results Vault were used to
review how cinema performed across different product categories including
FMCG, services, leisure and entertainment.
In the FMCG category, cinema delivered a RROI of €2.88 from just 6% of the
total media spend. When used as a secondary medium in this sector, Cinema
provides the highest RROI amongst other media, enjoying a 51% carryover,
just behind TV. The FMCG research was further broken down into three
subcategories covering Food and Drink, Health and Beauty, as well as
impulse purchases.
Cinema was the standout media in the Food and Drink subcategory returning
€4.80 and 68% carryover when 7% of the overall media budget was invested
in the medium. This was the best performance of all media.
For Health and Beauty, cinema also delivered the highest RROI of all media
within its subcategory, delivering €2.97 from a 5% spend, while the 40%
carryover rate in this subcategory outperformed both Outdoor and Print.
Cinema spend for Impulse purchases returned €2.12 from a 6% media spend,
again higher than both Outdoor and Print, with a 51% carry over, indicating
that in this subcategory Cinema works harder than all other secondary
media.
In the Service category, Cinema returned €3.43 for every €1 spent from just
3% of the media budget invested in the medium. This is €1.14 higher than
Outdoor’s achieved RROI with 12% of the media budget. Cinema’s carryover
rate was 43%, also highest behind TV.
The Leisure and Entertainment category delivered €3.08 from a 3% Cinema
spend, generating €1.22 more than Outdoor, which represented 7% of media
spend. With a 43% carryover rate, Cinema was again the highest performing
medium behind TV for this category.
Econometrics also identified optimum percentage investment in Cinema as
part of the media mix. It found that on average, spending up to 10% of a
media budget on Cinema advertising can significantly increase the total
communications RROI for an overall campaign, in addition to the specific
medium. In the Leisure and Entertainment category, for example, investing 410% of media spend in Cinema drove total communications RROI of €4.24.
Adding Cinema to the schedule boosts return on investment from other
media too as the RROI for TV increased to €2.09 from €1.24 when part of the
media mix. The RROI for TV’s Leisure and Entertainment spend increased to
€5.87 from €5.10 when cinema was added.
Sally Dickerson, Global CEO of BrandScience says: “Working with the Cinema
Advertising Association (CAA) and other Screen Advertising World
Association (SAWA) members across Europe, BrandScience has collated
evidence from its Results Vault of over 1100 econometric studies in Europe, of
which 111 evaluated Cinema Spend and other media. The meta analysis
proves that Cinema delivers a healthy return on media investment,
particularly when used as part of an integrated campaign. Cinema performs
in its own right as measured by direct RROI (Revenue ROI) and enhances all
other main media in assuring higher campaign RROI”.
Sarah Dack, Board Member of the CAA adds: “Whilst many studies continue
to prove that Cinema delivers more engagement, reaches light TV and youth
audiences, the BrandScience study confirms that cinema doesn’t just deliver
soft KPIs, it also drives strong return on investment for the brands that advertise
on the Big Screen.”
The European study was commissioned by the Screen Advertising World
Association (SAWA) and was based on 111 case studies measuring the
impact of cinema when used with other media. The European RROI number
refers to 56 case studies where in depth analysis has been carried out. The UK
study was based on 27 case studies and commissioned by the Cinema
Advertising Association (CAA) in the UK. Both pieces of insight were drawn
from the BrandScience Econometrics Results Vault containing over 1000
cases.
Helen Nassey
PR Manager
Propeller
+44 (0)20 3301 5341/+44 (0)750 612 1999
Email: helen.nassey@propellergroup.com
For further information please contact:
Liza Patoux
Marketing Manager
+44 (0) 20 7534 6228
Email: liza.patoux@dcm.co.uk
Notes to Editors
About the Cinema Advertising Association (CAA)
The trade association CAA promotes, monitors and maintains standards of
cinema advertising in the UK and Republic of Ireland.
The primary functions include pre-vetting and clearing all UK cinema
commercials to ensure conformity with the British Codes of Advertising, sales
promotion and direct marketing. It also provides UK cinema market
information in terms of impacts, admissions and screen numbers. In addition it
produces the annual Film Audience Measurement and Evaluation (FAME)
and Film Monitor research providing insight into cinema going and the film
viewing experience within the UK.