Often times, when major motion pictures are declared successes or flops in the media, the measurement used is simply how much money the film brought in at the box office versus how much it cost the studio to make. But according to an article from “The Hollywood Reporter” rising marketing costs are causing these studios major headaches.
The story states that global marketing costs for major motion pictures are skyrocketing, having reached approximately $200 million on average for summer blockbusters. That number represents a 33 percent increase since 2007, when the marketing spend for these big-budget films was around $150 million.
“Marketing is the single most discussed and debated issue in Hollywood,” said CBS Films chief Terry Press in the article.
The piece covers several factors contributing to rapidly growing marketing expenses, including the rising price of television advertising and the struggle studios experience in trying to budget spending in the U.S., where box office numbers are declining. But another reason given is the slow adjustment the industry is making in embracing multichannel marketing solutions and digital advertising.
A recent joint survey commissioned by Nielsen and Twitter found that 87 percent of Twitter users were influenced in their most recent movie choice by the social media site and that that 62 percent of moviegoers used the Internet or mobile apps to learn about films. Nonetheless, studios rarely spend more than $10 million on digital marketing.
“We have to be more inventive about how we reach consumers,” said Sue Kroll, Warner Bros. marketing chief in the Hollywood Reporter piece. “Moviegoers are very savvy. You have to figure out new ways of appealing to them. We are seeing significant changes in the way we spend across all platforms. It’s a patchwork quilt. It never gets boring.”
So what lessons can businesses take from Hollywood’s struggles? The most important takeaway is that marketing is rapidly evolving to include more channels, and if your company isn’t committed to keeping up, it risks spending inefficiently and forfeiting potential profits.
That is not to suggest that multichannel marketing is easy. If major Hollywood studios are struggling to make the best use of their marketing dollars, many SMBs are likely to run into similar problems, albeit on a smaller scale. And that is why a multichannel marketing partner like InfoCision is so valuable.
We’ve watched the marketing landscape evolve over 30 years and understand the current trends. We can help you allocate your resources in a way that makes sense for your particular company, helping you grow your customer base and revenue along the way. InfoCision offers solutions for your social media accounts, website, telemarketing, direct mail and more. We can also provide business intelligence that helps you personalize your marketing and more effectively target your consumers and prospects.
So if your company is struggling with its marketing spending or is simply a little unsure of the direction its headed, consider reaching out to InfoCision for a helping hand. It’s not too late for your organization to get its own Hollywood ending.