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Com 490 - Chapter 6 - Total v2 Chp3 Updts Final Draft (1)

Com 490 - Chapter 6 - Total v2 Chp3 Updts Final Draft (1)

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02/01/2013

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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.

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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 \u201ccool\u201d to
audiences 30 years of age or less due to these \u201cyounger people\u201d, being acclimated, over a
lifetime of exposure to advertising.

As media usage has changed and evolved to having more viewing options, the
competition for \u2018eyeballs\u2019 and a viewing audience have become more fragmented. Movie
theaters have historically been a safe haven from advertising, but recently have emerged as a
stronger contender for those advertising dollars.

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 \u2018entertainment\u2019

The Advent of Movie Theater Advertising

Advertising\u2019s 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).

\u201cThe Public\u201d, 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). \u201cIt 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

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