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Part Five Developing the Integrated Marketing Communications Program
Belch: Advertising and
Promotion, Sixth Edition
Exhibit 13-12 Many
companies use movies to
promote their products
V. Developing the
Integrated Marketing
Communications Program
13. Support Media © The McGraw−Hill
Companies, 2003
6. Proximity. Since many theaters are located in or adjacent to shopping malls, potential
customers are “right next door.” (Of moviegoers, 73 percent combine the activity
with dining out, 69% percent with shopping.)
7. Segmentation. A key advantage of movie advertising is the ability to target specific
demographic segments. The profile of the moviegoer is above-average in education
and affluent. The movie titles and ratings enable advertisements to reach specific
groups.
Disadvantages of Movie Theater Advertising Some of the disadvantages
associated with movie theaters as advertising media follow:
1. Irritation. Perhaps the major disadvantage is that many people do not wish to see
advertising in these media. A number of studies suggest these ads may create a high
degree of annoyance. 38 This dissatisfaction may carry over to the product itself, to the
movies, or to the theaters. Mike Stimler, president of the specialty video label Water
Bearer Films, says, “People boo in movie theaters when they see product
advertising.” 39 Anne-Marie Marcus, vice president of sales for Screen Vision,
contends that the furor has died down, though the T. J. Maxx retail chain says it is
unlikely to use this form of advertising again. 40
2. Cost. While the cost of advertising in local theaters has been cited as an advantage
because of the low rates charged, ads exposed nationally are often as much as 20 percent
higher than an equal exposure on television. CPMs also tend to be higher than in
other media.
While only two disadvantages of theater advertising have been mentioned, the first
is a strong one. Many people who have paid to see a movie perceive advertising as an
intrusion. In a study by Michael Belch and Don Sciglimpaglia, many moviegoers
stated that not only would they not buy the product advertised, but they would consider
boycotting it. So advertisers should be cautious in their use of this medium. If
they want to use movies, they might consider an alternative—placing products in the
movies.
Product Placements in Movies and on TV
An increasingly common way to promote a product or service is by showing the actual
product or an ad for it as part of a movie or TV show. While such product placement
does not constitute a major segment of the advertising and promotions business, it has
proved effective for some companies and has taken on increased importance with
advertisers’ concerns over viewers’ ability to avoid watching commercials. (Note:
Like specialty advertising, product placement is sometimes considered a promotion
rather than an advertising form. This distinction is not a critical one, and we have
decided to treat product placement as a form of advertising.)
A number of companies pay to have their products
used in movies and music videos. For example, in the
movie Austin Powers, the villain Dr. Evil’s spacecraft
was in the shape of a “Big Boy” from the Big Boy
restaurant chain. In Austin Powers III, Taco Bell, Jaguar,
and Starbucks were just a few of the many product
placements to appear. Essentially, this form is advertising
without an advertising medium. Often, the audience
doesn’t realize a product promotion is going on (See
Exhibit 13-12). Viewers tend to see brand names in films
as lending realism to the story. Yet the impact on the
buying public is real. For example, when Reese’s Pieces
were used in the movie E.T., sales rose 70 percent and
the candies were added to the concessions of 800 movie
theaters where they had previously not been sold. 41 Sales
of Ray-Ban Wayfarer sunglasses tripled after Tom
Cruise wore them in the movie Risky Business, and Ray-
Ban Aviator sales increased 40 percent after he wore