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Com 490 - Chapter 6 - Total Final Draft 10-01-07

Com 490 - Chapter 6 - Total Final Draft 10-01-07

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Published by: TNT1842 on Aug 21, 2008
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05/09/2014

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Introduction

Advertising has had controversial value to the public. The general public\u2019s
attitude toward advertising has been increasingly negative over the years (Mittal, 1994).
Advertisers continue to extend their reach from newspapers, magazines, radio, television,
billboards, bus sides, taxi roofs, wheel covers, a progressive migration to the Internet and now
into public paid for spaces such as movie theaters. Consumers still have the ability to \u201cspend
with their feet\u201d and not attend movie theaters, but what effect is this intrusion having on movie
sales and general satisfaction of consumers in the movie going audience? Will theater owner\u2019s
revenue gained from advertisers be offset by loss of audience due to a lack of customer
satisfaction experience? It is important to do research on advertising in mass media forms
because the effects of advertising are so profound and imminent. The movie industries survival
and the consumer\u2019s response to advertising are vital to the future of the movie industry, the future
of movie theaters as well as for the movie-goer.

Literature Review

. We predict that advertising in movie theaters lowers attendance in people over age 30.
Inversely, we predict that advertising is less noticeable and more interesting and \u201ccool\u201d to
audiences 30 years of age or less due to being acclimated over a lifetime of exposure to
advertising.

1

Advertising in movie theaters is relatively new in that it began in 2001 during the fallout
of the dot.com boom and a successive stock market crash. Theater owners looking to build
revenue during a time when unemployment was up and the general public had less disposable
income turned to advertising on the big screen.

Some of the factors contributing to movie theater box office decline are social factors
eroding theater environment (talking, cell phones, babies crying etc.); sacrificing long term
relationships with theater-goers for the increase in short term profitability (commercials, no
ushers etc.); higher quality experience elsewhere (home theater); declining quality of mainstream
movies; easily available long tail content alternatives (Netflix, Blockbuster Video, Cable, TIVO
etc.); price; demographics: aging baby boomers simply go out to the movies less. (Goldstein,
2005).

The public, and children specifically, are targeted because of their susceptibility and
status as a \u201ccaptive audience\u201d once in movie theaters. "Theaters are being more aggressive in
pursuing advertisers, versus being concerned about turning off customers\u201d. The trend started
nationally when companies started sponsoring movies." (Robertson, 2001 p3). It is generally

accepted that cinema is a high-impact medium due to the largely captive and attentive audience,
compounded by the size of the visual stimulus and the quality of the sound. Add to this,
potentially low media and environmental clutter and distractions, as well as the audience\u2019s
inability to do anything other than look at the screen (i.e., no \u201czipping\u201d or \u201czapping\u201d). (Ewing,
Foster, Du Plessis, 2001 p. 1).

Past research has shown implications of advertising having negative health implications
in four significant ways;
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\u201cPhysical health is cited as the vulnerability to mimic good or bad social habits
based on advertising influence. Emotional health can be affected by delivering media-
imposed definitions of beauty, sexuality, maturity and problem-solving. Advertising also
plays an influential role in other emotional issues such as instant gratification. Social
health because advertising often communicates attitudes, values, beliefs and ideologies,
including those of consumption, competition and materialism. Finally, it can affect our
cultural health when we observe how, when, and if certain groups of people are
represented or not represented in advertising messages.\u201d (Fox, 2001)

The origins and success of advertising in movie houses in Phoenix, Arizona and the
successive growth of movie theater advertising in the ensuing years show an initial surge in the
form of mass media advertising. Large movie theater chains picked up the idea and it has
contributed $200-$300 million in revenue with a 20% growth rate. (The Business Journal, July 6,
2001).

This spoke to the researchers concern of being deluged with advertising in every instance
and space of our experience has an annoying and unhealthy impact that we think turns off and
offends many viewers. Americans feel assaulted by advertisements and commercials. There are
advertisements and commercials in schools, airport lounges, doctor\u2019s offices, movie theaters,
hospitals, gas stations, elevators, convenience stores, on the Internet, on fruit, on ATM's, on
garbage cans and countless other places. There are ads on beach sand and restroom walls. "I don't
know if anything is sacred anymore," Mike Swanson, who directs ad placement for the ad
agency Carmichael Lynch, told the Associated Press. (Ruskin, 2006)

This assault intensifies virtually every day. With ad budgets skyrocketing, advertising
techniques inevitably become more invasive and coercive. Advertisers are engaged in a relentless
battle to claim every waking moment, and what one executive called, with chilling candor, mind
share. (Ruskin, 2006)

3

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