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Ross W. Martin

   E-Marketing in the
     Film Industry
A Little Bit About Meโ€ฆ.
              โ€ข University of Nevada โ€“ Marketing Major
              โ€ข Graduated from Spanish Springs H.S.
              โ€ข Employed at KRNV News 4




My Family ๏ƒ 
I Was Born Here
Thatโ€™s Why I Like:
I Grew Up Here
Thatโ€™s Why I Like:
Oh Renoโ€ฆ.such an easy
       target.
But what I really like is:
Thatโ€™s why I want to discuss:




    E-Marketing
        in the
    Film Industry
What are the current marketing
   trends in the industry?
 Television
 advertising usually
 accounts for 70-75%
 of a filmโ€™s marketing
 budget.
 However, people are
 generally more
 engaged on the
 Internet, and are
 spending more and
 more time online
 each year.
So why donโ€™t studios spend
 more time and money on
      E-Marketing?
Hereโ€™s how they could reach
 their filmsโ€™ target markets:
The industry could eventually
   suffer if it doesnโ€™t make a
greater effort to market a wider
        variety of films.


   E-Marketing
 is the most logical way to do it
But whatโ€™s wrong with
current industry trends?




       Iโ€™m glad you askedโ€ฆ
People are getting tired of the old
predictable


They want to be surprised at the
theater with creative, exciting, and
original films.



     Butโ€ฆ.
These films are
          strugglingโ€ฆ
Too risky to finance an original film with no
pre-existing fan base or recognition.
When one is financed, little $ is spent on
marketing it in order to minimize risk.
Therefore, the film will most likely gain
little awareness, perform poorly at the box-
office, and eventually be forgotten.
So studios are putting most of their marketing
    $$$ toward sequels and blockbusters
They need to make sizable marketing
investments on smaller films as well, in order
to give them a chance at the box-office.
If $50 million is spent to market a $150
million (budgeted) movie, but only $5 million
is spent to market a $15 million movie, canโ€™t
you only expect 10% of the awareness of
the larger movie??? The proportion is the
same, but the effect wonโ€™t be.
If a film is great and can
resonate with people, donโ€™t
worry about its low budget or
commercial prospects. Spend
the time and money and spread
the message.
In 2008โ€ฆ
The rights to a certain film were purchased by Warner
Independent Pictures and later transferred to Warner Bros.

The budget of the film was a miniscule $15 million.

It sat on the shelf for a long time and wasnโ€™t released.

Warner Bros. didnโ€™t think it would do well at the box-office
and planned for a straight-to-DVD release.
  The DEATH KISS for a film.

Fox Searchlight Pictures later made a deal to buy 50% of
Warner Bros.โ€™ interest in the movie and split distribution
costs.

The film was finally screened at film festivals and was given
a limited theatrical release on November 12, 2008.
Slumdog Millionaire

         and win

              Including
              Best Picture



            Academy
             Awards
Soโ€ฆitโ€™s
         possible.
If studios make the effort to market their
original and well-made low-budget films,
they will realize greater profits than they
would by only focusing on blockbusters,
and the public will regain a more positive
        opinion of the film industry.
By utilizing E-Marketing
 strategies, a studioโ€™s
campaigns will become:
Less Expensive
More Creative
More Engaging
More Successful
More Diversified
Does CRM Pertain to Film?
YES (in a different way than in most industries, but yes)

Target market engagement is key.
  Getting the target market involved.
  Creating relationships, excitement, and anticipation.

โ€œRecognizing a customerโ€™s roleโ€ is the first rule.
  Paying attention to where they are and what they
  want.
  Establishing a system of 2-way communication

Retain the customerโ€™s interest even after the film has
left theaters.
People are loyal to franchises,
   directors, actors, etc.
Creates a basis for CRM.
Case in point:
A great example of online CRM in the film industry

Star Wars is a brand
Customer (fan) loyalty is critical
โ€œExpanded Universeโ€ includes
books, videogames, TV & radio
shows, etc.
Starwars.com includes
movie/show/videogame info, a
blog, a store, an encyclopedia,
featurettes, clips, links to fan
sites, and more.
Major presence on online
forums and various sites.
It can be very beneficial
Other franchises such as The Lord of the Rings and Harry Potter
also employ effective online CRM strategies

โ€œPottermoreโ€ is an exclusive online club for Harry Potter fans
that gives them access to previously unreleased material and
allows them to purchase Harry Potter e-books.

These are high-profile examples, but any film can implement an
online strategy through sites, blogs, forums, games, social
media, etc., that allows them to retain customers and get them
interested in movie products or other films from the same
studio, franchise, actor, director, or writer.

Itโ€™s all about ENGAGEMENT.
Viral E-Marketing
A Useful Trend and Invaluable Asset for Studios
Viral E-Marketing
Engages customers on a
whole new level.

Uses the Internet to rapidly
spread information

Creates discussion between
friends.

Crosses cultural boundaries
and draws media coverage.
Some films have used it
successfully, but only a
relatively small number
Paranormal Activity
$15,000 budget.

Shot in 7 days in the directorโ€™s home.

Films this small almost never make it to theaters.

Owned and distributed by Paramount and Dreamworks SKG

Film had no hype prior to production, no recognition for the
director or actors, an unknown concept, and no fan base.

Ended up grossing $193.4 million worldwide and spawning
two sequels.

HOW???
A Brilliant Viral e-Marketing Campaign
  No generic horror trailers or traditional online display ads.

  Videos/trailers released on various sites and online
  communities that showed the effects of the movie, not just clips
  from the movie itself.
    People screaming
    People claiming they werenโ€™t able to sleep
    โ€œThe scariest film Iโ€™ve ever seenโ€ comments

  Midnight screenings in college towns (target market)

  An Eventful page that allowed people around the country to
  โ€œdemandโ€ the movie be screened in their city.
    Paranormal Activity was screened in those markets and attracted
    even more hype.

  Excitement, anticipation, and social media FRENZY
Other Viral
E-Marketing
Successesโ€ฆ.
The Dark Knight
     Rises
Viral E-Marketing
The most dynamic way to engage customers.
Creates an unprecedented level of excitement
and anticipation.
Results in enormous box-office success if
executed well.

So what should studios be doing?
Studios should be focusing
 more on original ways to
reach their target markets
online instead of spending
 so much time and money
on television and print ads.
Founded in 1999
Over 2.2 million unique visitors monthly
Collects and posts reviews for every film from film
critics and journalists around the country.
Each film has a โ€œTomatometerโ€ score, which is the %
of positive reviews that the film received.
Over 60% is โ€œFreshโ€, under 60% is โ€œRottenโ€
If a film has over 40 reviews and its Tomatometer
score is greater than or equal to 75%, it is โ€œCertified
Freshโ€.
The go-to site for movie reviews and opinions.

Can make a film marketerโ€™s job very easy or very
difficult.

Can significantly help a film generate great word-of-
mouth and lead to incredible box-office success.

Can also practically destroy an entire campaign and
negatively influence othersโ€™ opinions of a movie.

Needs to be closely analyzed and monitored by film
studios during marketing campaigns.
Thank You!

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Ross Martin E-Marketing Blog Showcase

  • 1. Ross W. Martin E-Marketing in the Film Industry
  • 2. A Little Bit About Meโ€ฆ. โ€ข University of Nevada โ€“ Marketing Major โ€ข Graduated from Spanish Springs H.S. โ€ข Employed at KRNV News 4 My Family ๏ƒ 
  • 3. I Was Born Here
  • 5. I Grew Up Here
  • 7. Oh Renoโ€ฆ.such an easy target. But what I really like is:
  • 8. Thatโ€™s why I want to discuss: E-Marketing in the Film Industry
  • 9. What are the current marketing trends in the industry? Television advertising usually accounts for 70-75% of a filmโ€™s marketing budget. However, people are generally more engaged on the Internet, and are spending more and more time online each year.
  • 10. So why donโ€™t studios spend more time and money on E-Marketing?
  • 11. Hereโ€™s how they could reach their filmsโ€™ target markets:
  • 12. The industry could eventually suffer if it doesnโ€™t make a greater effort to market a wider variety of films. E-Marketing is the most logical way to do it
  • 13. But whatโ€™s wrong with current industry trends? Iโ€™m glad you askedโ€ฆ
  • 14. People are getting tired of the old predictable They want to be surprised at the theater with creative, exciting, and original films. Butโ€ฆ.
  • 15. These films are strugglingโ€ฆ Too risky to finance an original film with no pre-existing fan base or recognition. When one is financed, little $ is spent on marketing it in order to minimize risk. Therefore, the film will most likely gain little awareness, perform poorly at the box- office, and eventually be forgotten.
  • 16. So studios are putting most of their marketing $$$ toward sequels and blockbusters
  • 17. They need to make sizable marketing investments on smaller films as well, in order to give them a chance at the box-office. If $50 million is spent to market a $150 million (budgeted) movie, but only $5 million is spent to market a $15 million movie, canโ€™t you only expect 10% of the awareness of the larger movie??? The proportion is the same, but the effect wonโ€™t be.
  • 18. If a film is great and can resonate with people, donโ€™t worry about its low budget or commercial prospects. Spend the time and money and spread the message.
  • 19. In 2008โ€ฆ The rights to a certain film were purchased by Warner Independent Pictures and later transferred to Warner Bros. The budget of the film was a miniscule $15 million. It sat on the shelf for a long time and wasnโ€™t released. Warner Bros. didnโ€™t think it would do well at the box-office and planned for a straight-to-DVD release. The DEATH KISS for a film. Fox Searchlight Pictures later made a deal to buy 50% of Warner Bros.โ€™ interest in the movie and split distribution costs. The film was finally screened at film festivals and was given a limited theatrical release on November 12, 2008.
  • 20. Slumdog Millionaire and win Including Best Picture Academy Awards
  • 21. Soโ€ฆitโ€™s possible. If studios make the effort to market their original and well-made low-budget films, they will realize greater profits than they would by only focusing on blockbusters, and the public will regain a more positive opinion of the film industry.
  • 22. By utilizing E-Marketing strategies, a studioโ€™s campaigns will become: Less Expensive More Creative More Engaging More Successful More Diversified
  • 23. Does CRM Pertain to Film? YES (in a different way than in most industries, but yes) Target market engagement is key. Getting the target market involved. Creating relationships, excitement, and anticipation. โ€œRecognizing a customerโ€™s roleโ€ is the first rule. Paying attention to where they are and what they want. Establishing a system of 2-way communication Retain the customerโ€™s interest even after the film has left theaters.
  • 24. People are loyal to franchises, directors, actors, etc. Creates a basis for CRM. Case in point:
  • 25. A great example of online CRM in the film industry Star Wars is a brand Customer (fan) loyalty is critical โ€œExpanded Universeโ€ includes books, videogames, TV & radio shows, etc. Starwars.com includes movie/show/videogame info, a blog, a store, an encyclopedia, featurettes, clips, links to fan sites, and more. Major presence on online forums and various sites.
  • 26. It can be very beneficial Other franchises such as The Lord of the Rings and Harry Potter also employ effective online CRM strategies โ€œPottermoreโ€ is an exclusive online club for Harry Potter fans that gives them access to previously unreleased material and allows them to purchase Harry Potter e-books. These are high-profile examples, but any film can implement an online strategy through sites, blogs, forums, games, social media, etc., that allows them to retain customers and get them interested in movie products or other films from the same studio, franchise, actor, director, or writer. Itโ€™s all about ENGAGEMENT.
  • 27. Viral E-Marketing A Useful Trend and Invaluable Asset for Studios
  • 28. Viral E-Marketing Engages customers on a whole new level. Uses the Internet to rapidly spread information Creates discussion between friends. Crosses cultural boundaries and draws media coverage.
  • 29. Some films have used it successfully, but only a relatively small number
  • 30. Paranormal Activity $15,000 budget. Shot in 7 days in the directorโ€™s home. Films this small almost never make it to theaters. Owned and distributed by Paramount and Dreamworks SKG Film had no hype prior to production, no recognition for the director or actors, an unknown concept, and no fan base. Ended up grossing $193.4 million worldwide and spawning two sequels. HOW???
  • 31. A Brilliant Viral e-Marketing Campaign No generic horror trailers or traditional online display ads. Videos/trailers released on various sites and online communities that showed the effects of the movie, not just clips from the movie itself. People screaming People claiming they werenโ€™t able to sleep โ€œThe scariest film Iโ€™ve ever seenโ€ comments Midnight screenings in college towns (target market) An Eventful page that allowed people around the country to โ€œdemandโ€ the movie be screened in their city. Paranormal Activity was screened in those markets and attracted even more hype. Excitement, anticipation, and social media FRENZY
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  • 39. Viral E-Marketing The most dynamic way to engage customers. Creates an unprecedented level of excitement and anticipation. Results in enormous box-office success if executed well. So what should studios be doing?
  • 40. Studios should be focusing more on original ways to reach their target markets online instead of spending so much time and money on television and print ads.
  • 41. Founded in 1999 Over 2.2 million unique visitors monthly Collects and posts reviews for every film from film critics and journalists around the country. Each film has a โ€œTomatometerโ€ score, which is the % of positive reviews that the film received. Over 60% is โ€œFreshโ€, under 60% is โ€œRottenโ€ If a film has over 40 reviews and its Tomatometer score is greater than or equal to 75%, it is โ€œCertified Freshโ€.
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  • 43. The go-to site for movie reviews and opinions. Can make a film marketerโ€™s job very easy or very difficult. Can significantly help a film generate great word-of- mouth and lead to incredible box-office success. Can also practically destroy an entire campaign and negatively influence othersโ€™ opinions of a movie. Needs to be closely analyzed and monitored by film studios during marketing campaigns.