Hi n2film,
I have a background in marketing, and researched movie ticket ad
purchases at a former company, so I am familiar with this area. I
contacted a company that sells advertising solutions nationally,
including the backs of ticket stubs, called National Cinema Network
(http://www.ncninc.com) this morning. They are owned by AMC Theaters,
so you can rest assured the information I provide here is real market
data. I requested information about the Florida, New York and LA
markets (just for reference) and was told that price/value information
is generally market-independent because it is the effectiveness of the
ad vehicle that determines pricing. I had a 30 minute conversation
with two vice presidents there, and feel I received enough information
to answer your questions:
Measurement:
The first question answered is that yes, an advertisement/coupon on
the back of a ticket stub is considered an impression, and rates are
determined via CPMs (cost per thousand impressions.)
Determining Ad Rates:
In order to determine your ad rates, you need to assess the
effectiveness of an ad purchase vs. ad alternatives. NCN gave me some
context around alternative ad purchase vehicle redemption rates and
corresponding CPMS, which I can list for you here:
+ CPMs for free standing inserts in newspapers range from $10 - $12. A
bit low because the consumer is nowhere near the point of purchase.
+ CPMs for those blue BellPac coupon booklets that are mass mailed out
nationally are $30 - $35. A one-to-one assurance of an impression is
not guaranteed, and the consumer is not near the point of purchase,
but the higher CPM is likely influenced by volume. The effectiveness
there is debatable.
+ Redemption rates at grocery stores where a coupon machine hangs from
the aisles is roughly 25% because you are AT the point of purchase.
Thus, when trying to assess the value/effectiveness of a ticket stub
ad purchase, you should focus on the fact that you are guaranteed a
one-to-one impression - every consumer takes a ticket. They also hang
on to the ticket either to see what theater number they are going to
(opportunity for an impression); as a sentimental reminder of the
movie (opportunity for an impression) or simply as a receipt, usually
kept in their pocket throughout the movie experience. A final
impression opportunity comes at the end of a day, when the pockets are
emptied and someone looks directly at the ticket to decide if they
want to hang onto it. Thus, there are opportunities for multiple
impressions with a ticket stub that are not afforded by more
traditional ad purchases.
Additionally, you should consider the intangibles as far as a ticket
stub ad purchase is concerned vs. other alternatives: the consumer is
in a very positive environment, purchasing of their own volition, not
having an ad forced on them in a newspaper, etc. This may increase
redemption likelihood, but is immeasureable.
Value (Determining worth per ticket):
The value of a ticket stub purchase depends on what the coupon is for.
Using the word "free" in a coupon increases redemption automatically
(e.g., buy one get one free, buy two get one free, etc.) This is like
cash money to the consumer. Additionally, advertisers who offer
redemption of coupons more easily (e.g., a pretzel store in the same
mall as the theater vs. sporting goods store on the other side of town
trying to compete with the one in the mall) are likely to have higher
value per ticket. As you can see there are many factors that influence
worth per ticket, all tied to the advertiser and the advertiser's
offering. I can offer you this though - Verizon and Best Buy are
currently working with NCN on ticket stub campaigns, and they are
"very happy" with the product.
Rates:
NCN's ticket stub rates for the Florida theater market are determined
via CPMs. Based on the multiple impression opportunities and
one-to-one nature of a movie ticket, and the comparative information
above, the CPM rate they charge for ticket stubs is $30 or 3 cents per
ticket stub. NCN indicates that ticket stub ad purchases are selling
quite well. Ticketmaster, who also offers this kind of ad vehicle, is
even considering raising their CPMs to $40 or 4 cents per ticket.
Summary:
Depending on the volume you could offer your customers through your
theaters, you can currently stand behind a per ticket rate of 3 cents,
justified by the market data above. If you have more detailed customer
segmentation data available to you, you may choose to raise customer
rates by offering tailored demographic purchase opportunities to your
clients as well. (E.g., selling one ad type to individuals who are
senior citizens vs. another ad type to minors vs. another ad type to
rest of the moviegoing audience.) You should find that your customers
will find more value with audience segmented purchases than the
general lot, if you can offer this option to them.
I hope the information above meets your needs. If you have any
additional questions, please post an answer clarification before
rating this answer.
Happy Holidays,
Rippo
Search Strategy:
"back of movie tickets" advertising marketing
ADDITIONAL LINKS:
Site Where You Can Find NCN's Contact Info:
http://216.239.53.100/search?q=cache:hI8zzPjky90C:www.brandslam-summit.com/BrandSLAM_05-2002.pdf+%22back+of+movie+tickets%22+advertising+marketing&hl=en&ie=UTF-8
Another Advertising Solutions Company Offering This Solution:
http://www.cinemaads.com/coupon.html |
