Professional Documents
Culture Documents
Advertising has had controversial value to the public. The general public’s
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 “spend
with their feet” 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’s
revenue gained from advertisers be offset by loss of audience due to a lack of customer
because the effects of advertising are so profound and imminent. The movie industries survival
and the consumer’s response to advertising are vital to the future of the movie industry, the future
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Chapter 2
Literature Review
Advertising in movie theaters would seem to lowers attendance in people over age 30.
Inversely, we predict that advertising is less noticeable and more interesting and “cool” to
audiences 30 years of age or less due to these “younger people”, being acclimated, over a
As media usage has changed and evolved to having more viewing options, the
competition for ‘eyeballs’ and a viewing audience have become more fragmented. Movie
theaters have historically been a safe haven from advertising, but recently have emerged as a
The ability for advertisers to subtly introduce more clever advertising, both static and
short film length, speak of a public who is often in a restful mood and vulnerable under the
auspices of ‘entertainment’
Advertising’s introduction back into movie theaters is relatively recent in that it began
again 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. Movie theater
attendance has historically been consistent during good times and bad times as patrons flock to
the movies to escape reality and be entertained under the best and worst of circumstances.
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Cinema Advertising started in the early 1900's in Europe where it remains very popular
today. Cinema Advertising currently makes up approximately 1% of dollars spent on
advertising in Europe. Half a century ago, advertisers in the U.S. often reached customers
using cinema advertising. But in the 1950's television became the advertising medium of
choice. Since then, TV advertising has grown into a $60 billion dollar a year industry.
But with more than 200 TV channels and invention of TIVO to zap commercials,
advertisers are returning to cinema advertising. In 2003, over $350 million was spent on
cinema advertising, up 37% from the previous year. Velocity Cinema Advertising was
established in 1999 to help agencies and advertisers place cinema campaigns in multiple
markets across the country. (Velocity, 1998 p. 1)
Some of the factors contributing to movie theater box office decline are social factors
such as 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 p. 1).
“The Public”, and children specifically, are targeted because of their susceptibility and
status as a “captive audience” once in movie theaters. "Theaters are being more aggressive in
pursuing advertisers, versus being concerned about turning off customers”. The trend started
nationally when companies started sponsoring movies." (Robertson, 2001). “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’s
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inability to do anything other than look at the screen (i.e., no “zipping” or “zapping”)” (Ewing,
Past research has shown implications of advertising having negative health implications
Physical 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. (Fox, 2001 p. 13)
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).
The authors of these articles spoke to the concern of being deluged with advertising in
every instance and space of humanities experience. The annoying and unhealthy impact is that
these could turn-off and offend many viewers. Americans often feel assaulted by advertisements
and commercials. There are advertisements and commercials in schools, airport lounges, doctor’s
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," said Mike Swanson, who directs ad
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placement for the ad agency Carmichael Lynch, when he spoke to the Associated Press. (Ruskin,
2006 p. 2)
The assault of advertising 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
observed “a kind of decent materialism” emerging. The debate over Capitalism and ethics began
to emerge in different circles of opposing views such as the article written by Max Weber titled
“The Protestant Ethic and the Spirit of Capitalism”, an essay focusing on Europe where Weber is
quoted as saying “material goods have gained an increasing and finally an inexorable power over
The book “Advertising, the Uneasy Persuasion – It’s Dubious Impact on American
Society” differentiates the needs of people and the exploitation of consumers for marketers and
advertisers gains. A critique ensues over the straw defenses put out by the advertising and
marketing crowd to say that they are only giving “the people what they want” much like a drug
pusher who may chide that they only sell to a clientele who already uses the drug they sell
The preponderance of marketing and advertising to “create motivations that propel the
race of consumption” (Schudson, 1984 p. 235) come into clear focus as the science of
advertising and marketing is rebuffed by arguments of fickle consumers and less than scientific
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methods for targeting specific demographics by the advertising and marketing advocates.
“Marketers do not actually seek to discover consumer needs as much as what is available among
movie ads. An Arbitron survey found that two-thirds of adults and seven in 10 moviegoers
between the ages of 12 and 24 “don’t mind” the ads. But an Insightexpress survey found that
52% of those surveyed found the ads intrusive, 53% said theaters should stop showing them, and
27% said showing the commercials will cause them to go to movies less frequently. Several
organizations have web sites urging people to oppose movie advertising. However, we could find
only anecdotal information on the increase in the number of movie trailers. There does not seem
to be the same level of opposition to the showing of previews. According to the National
Association of Theater Owners (NATO), the National Conference of State Legislatures, and two
organizations opposed to movie advertising, no state requires movie theaters to advertise the
Predicated on the information gathered on this subject, the following hypothesis is being
offered: Attendance at movie theaters is being affected by advertising in the movie theaters.
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Cha pte r 3
Methodology
This research will attempt to show the relationship between the independent variable:
advertising in movie theaters and the dependent variable, attendance of movie theaters in
Marina Del Rey theaters. The primary intervening variable in this study are age, income and
education background. These variables seem to be the most prominent in affecting outcomes of
the research found so far. A survey questionnaire was created for a non-probability, purposive
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Advertising in Attendance at
Movie Movie
Theaters Theaters
Independent Dependent
Variable Variable
Intervening Variables
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The illustration on the previous page shows how advertising plays a role in the decision
of movie-goers to attend movies. Other variables such as gender, age, education level and
This questionnaire is completely anonymous and confidential. Please answer each question as
truthfully as possible and do not leave any questions unanswered. Your time and participation
2. On average, how many advertisements or commercials would you say you are subjected
to before watching a movie (please exclude previews)
1 2 3 4 5 or more
Part II - Please circle the answer that most clearly describes how you feel about the
following statements according to the scale below
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1. I hate advertisements and commercials that are shown before a movie in theaters
(previews excluded).
SA A N D SD
2. I will arrive late or miss part of the movie to avoid advertisements before a movie.
SA A N D SD
SA A N D SD
7. Education:
Post-Graduate Degree
Please feel free to share any additional comments you have about this subject matter below:
The questions that comprise this research instrument have been prepared to obtain the pertinent
information from a random research sample of 105 respondents to measure whether or not, within the
sample, there is a belief that advertising at movie theaters affects an individual’s attendance at movie
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Distributing Your Survey by E-mail
Sending your survey by email couldn't be easier, just take the link below and copy it into
your message. For best results put the link onto a line of its own to ensure that your
participants email program doesn't word wrap it and cause problems.
PLEASE NOTE: If you wish to know who has taken your survey then you will have to ask
them in one of your questions. Alternatively go back and select option 3 on the previous
page and we will send a code to each of your participants so we know who has and hasn't
completed your survey. This option is only available to 'Premium' subscribers and is
not a part of either the 'Free' or 'Survey Extra' service. Click Here for more information.
Anticipated Data
The table below represents projected data for a Likert statement on the survey instrument.
The statement “I hate advertisements and commercials that are shown before a movie at
theaters.” was cross-tabbed with age of the respondents. Since 79% of all moviegoers are age
18-49 (an overwhelming majority) 30 seemed a good middle spot to create a demarcation of
Table 1
“I hate advertisements and commercials that are shown before a movie in theaters.” by age
group.
Age SA A N D SD Totals
Under 30 10 05 5 15 15 50 (50%)
(20%) (10%) (10%) (30%) (30%)
30 and above 20 20 (40%) 2 (4%) 5 3 (6%) 50 (50%)
(40%) (10%)
Total 30 25 (25%) 7 (7%) 20 18 100 (100%)
(30%) (20%) (18%)
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If the results were valid, it could be concluded that adults over age 30 are generally more likely
to be offended by advertising in movie theatres than adults less than 30 years of age. If the data
was from an actual survey, it would also imply that the younger demographic have a more
Affluent viewers are popular targets for a lot of advertising, including TV advertising.
Because they are bombarded by promotional messages so often and because they are more
frequent purchasers, affluent consumers are likely to be more jaded in their reactions to all
advertising, including TV advertising. More affluent people tend to watch television less often
than less affluent people (Condry, 1989). When they do watch, presumably it is because they
expect to get gratification from the programming. Those affluent viewers who anticipate
enjoying TV programs are more likely to find TV advertising intrusive. Also, those affluent
viewers who are more sophisticated about television advertising are more likely to be offended
when it does not fulfill their expectations. H1a: Affluent viewers who find TV advertising
intrusive are expected to dislike TV advertising. H1b: Affluent viewers who are offended by TV
advertising are expected to dislike it more (Alwitt & Prabhaker, 1994, p. 1) . This idea would
connect the results of Nielson Media Research, 1997 of audience demographics of adult
moviegoers that shows that 44% are in professional managerial positions, 46% are college
educated, 46% are male, 54% are female, 50% of all moviegoers are ages 18-34, 70% combine
dining out with seeing a movie and 79% of all moviegoers are ages 18-49. Since education is
often associated with affluence and income, the household income of the respondent survey was
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Household Income Moviegoers % of Population
$30,000 + 75% 60%
$50,000 52% 35%
$100,000 17% 7%
Conclusion
In summary, we find little value in advertising in general, and find it invasive and
harmful in most instances. To interrupt private leisure time and at the public’s personal expense
requires either a literal boycott or a “vote with their spending dollars” type voice from the
consumer public. The researcher predicts this will be one of the causes of the decline in the
attendance of movie viewers. Lawsuits brought against the movie industry such as Fisch vs.
Loews Cineplex Entertainment Group got the attention of movie advertising executives and
Loews actually complied with the request to list actual start times of movies as a first step
towards appeasing the complaints of movie patrons. A 2004 online survey of 500 adult
moviegoers by Insightexpress, an online market research service, reported that 53% of those
surveyed said theaters should stop showing commercials, 52% said the ads are intrusive, and
27% say the showing of commercials will cause them to go to movies less frequently. This
survey also found: 71% believe they should pay less for a movie if ads are shown; 18% enter the
movies later to avoid the commercials; Moviegoers younger than 35 are more receptive to movie
ads; and moviegoers would be more receptive to ads if they were funny, or of higher quality than
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The conclusions of this study and the section referring the comparison of advertising on
TV versus other media point to tolerance factors that are easily explained due to the voluntary
nature of consuming advertising as opposed to being subjected to it. Other than arriving to the
movie theatre late, which is difficult since theatres are reluctant to publish actual movie start
times, there will be some parallels between TV viewers and movie goers and the similar feelings
References
Journals
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Alwitt, Linda F. & Prabhaker, Paul R. (1994, p. 1). Identifying who dislikes television
advertising: Not by demographics alone. Journal of Advertising Research, 34 p. 1.
Ewing, Michael T., Foster, Charles, Du Plessis, Erik (2001 p. 2). Cinema Advertising Re-
considered. Journal of Advertising Research, 41 p. 1.
Mittal, B. (1994). Public assessment of TV advertising: Faint praise and harsh criticism. Journal
. of Advertising Research, 34(1), p. 1
Internet
Fox, R. F. (2001, November). Warning Advertising May Be Hazardous to Your Health: Ads Pose
a Threat to Physical, Emotional, Social, and Cultural Well-Being. USA Today (Society
for the Advancement of Education), 130, 62+. Retrieved October 1, 2006, from Questia
database: http://www.questia.com/PM.qst?a=o&d=5002426205
UID: trevathantim@yahoo.com Password: Welcome
Frisman, P. (2005). Movie Advertising and Starting Times. OLR Research Report.
Retrieved November 13, 2006, from http://www.cga.ct.gov/2005/rpt/2005-R-0091.ht
Goldstein, P. (2005) The Big Picture: Now Playing: A Glut of Ads. (L.A. Times, July 12, 2005).
http/www.latimes.com/business/custom/admark/la-et-goldstein12jul12,1,35978.story
(The above link is no longer accessible, but recorded for the article below as a reference
within the text)
http://bigpicture.typepad.com/comments/2005/07/declining_movie.html
Peele, S. (1995). , Fisch v. Loews Cineplex Entertainment Group Retrieved February 23, 2003,
from http://www.nomovieads.com
Schudson, M. (1984). Advertising, the Uneasy Persuasion: Its Dubious Impact on American
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Society. New York: Basic Books. Retrieved October 1, 2006, from Questia database:
http://www.questia.com/PM.qst?a=o&d=88989576
Velocity Cinema Advertising (1998). The Genesis of Movie Theater Advertising Revisited,
Retrieved October 5, 2007, http://www.movieadvertising.com/cinema_ads.html
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