2. INTERNATIONAL ShoWest Edition
Cineplex Entertainment
April 2008 / $7.50
FILMJOURNALINTERNATIONALSHOWESTEDITION/CINEPLEXENTERTAINMENTVOL.111,NO.4APRIL2008
www.filmjournal.com
INTERNATIONAL
JASON SEGEL STARS IN A
UNIVERSAL PICTURES RELEASE
April Cover Proto.qxd 2/27/08 6:24 PM Page 1
3. T
HE NIELSEN COMPANY, parent
company of both ShoWest and Film
Journal International, will be unveil-
ing an important new service to the motion
picture community at ShoWest 2008. Ann
Marie Dumais, senior VP of sales and mar-
keting, offers this exclusive advance look at
Nielsen PreView.
What is Nielsen PreView?
Nielsen Preview provides exclusive indus-
try intelligence by fostering a participatory
online community of feedback that is built
upon the integration and analysis of all
Nielsen information, such as TVRatings,
EDI, NRG and Soundscan.
Does Nielsen PreView focus on all indus-
tries, or are there certain ones?
Nielsen PreView’s initial focus is building
an entertainment community.
By community what do you mean?
Whether you are a start-up, graduate
student, agency, large advertiser, or studio—
anyone with an interest in or involved with
the creation, financing, production, market-
ing and distribution of entertainment will
have an interest in joining our community.
What are the benefits?
Registered members of NielsenPreView.
com have the ability to steer future research
by voting on upcoming topics and rating cur-
rent research. Registered members may also
access our library of best-practice reports,
industry analysis and breaking news. Finally,
members share insights/opinions via our
open and interactive online portal.
So members actually get to vote on
upcoming research?
Yes. We strongly encourage our Nielsen
PreView community to let us know “what
keeps them up at night.” Based on the
majority feedback, we create each quarter
original insights and learnings, leveraging
the many informational assets of Nielsen.
The Nielsen Company has so many
information assets. How do you determine
which Nielsen assets to use?
We really let the member’s chosen topic
drive which Nielsen informational sources to
use. For instance, in working on our most
recent “Collective Wisdom of Movies” study,
we drew upon several Nielsen sources such
as EDI’s eCinesys, Nielsen Monitor Plus
AdViews, Netratings and VideoScan. We
then integrated, modeled and analyzed these
informational sources to draw new learnings
and insights for our members.
Can you tell us more about this “Collective
Wisdom of Movies” study?
We will be premiering the insights from
our “Collective Wisdom of Movies” study
at ShoWest 2008. This study will provide
the following insights:
• What are the effective media vehicles
and marketing targets for movie
genres and moviegoers?
• What’s the BUZZ all about? What
impact does Internet buzz have on
marketing spend and box office?
• Are 3D movies for everyone, or just
for some?
• Is the PG rating a potential goldmine
for the movie industry?
• How early should studios begin mar-
keting their films?
• Do critics really have an impact on
the box office?
How is this service differentiated from
other Nielsen products and services?
As the global leader in marketing and
media research, Nielsen is known to be the
go-to source for “must-know” information
(e.g., TVRatings) that is specific and action-
able to one’s own business. The current para-
digm shift in consumers’ media and market-
ing habits requires all business people to
keep their eye on many balls simultaneously.
This increased need for more information,
coupled with the decrease in time allotment,
means business people are desperate for a
quick and simple dashboard of insights.
Such a simplistic “dashboard,” however,
requires a sophisticated amount of integra-
tion and analysis of very disparate informa-
tion sources. This need poses a challenge for
both small and large businesses alike. For a
small business, it’s not always financially fea-
sible to acquire multiple data sources. And
for a large company, it’s not always time-
effective to integrate and analyze disparate
external informational sources. What
Nielsen PreView provides to both small and
large businesses alike is a shared and inte-
grated research resource that provides
insights and direction. Nielsen PreView is a
starting point from which one can decide if
their informational needs are satisfied or if
custom research is needed.
What sets this kind of service apart from
all the other research companies out there?
Nielsen PreView has access to some
of the world’s largest informational data-
EXCLUSIVE
INDUSTRY
INSIGHTS,
LED BY THE
COMMUNITY,
BUILT BY NIELSEN
2 0 0 8
106 WWW.FILMJOURNAL.COM APRIL 2008
ANNOUNCING
NIELSEN
PreView
Continued on page 109
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4. slow times—sporting events. “So much of
that takes place on Saturday afternoons or
during the week when you don’t have
huge audiences already in the theatre for
movies,” Stephenson explains. “College
and professional sports are such enor-
mous events.”
Though Stephenson is particularly
excited about the potential of sports
events and live broadcasts, it’s 3D he’s
most looking forward to discussing with
his peers at ShoWest. “We’re very, very
early on in this 3D alternative program-
ming area. The more unique options we
can present, the better we’re going to do.”
GALEN KERASOTES,VP,ALTERNATIVE
PROGRAMMING, KERASOTES THEATRES
“You get one of the best views in the
house,” says Galen Kerasotes about his
concerts. But Kerasotes, like the other
participants in ShoWest alternative con-
tent seminar, is no music promoter. He’s
the VP of alternative content program-
ming at Kerasotes Theatres, and through
the Chicago-based circuit’s partnership
with several alternative content providers,
Kerasotes has given front-row concert
tickets to all its patrons.
Broadcasting performances by per-
formers like Led Zeppelin and Meat
Loaf, as well as live productions by New
York’s Metropolitan Opera, Kerasotes is
drawing in audiences who might never
previously have found what they were
looking for at the movies.
“It attracts people who might not nec-
essarily decide to go to the concert if they
don’t enjoy the concert environment, or if
they don’t want to have to drive to a large
city,” Kerasotes explains. “There are some
people who don’t come to the theatre very
often who make a special effort to come
out to the Met.”
Kerasotes theatres have also done
non-musical special presentations, such as
an event based around the Chicago
marathon. Even though the presentation
did not take place at the same time as the
marathon, the crowds still showed up in
droves. “The interest was actually stronger
than I had expected, especially since it
was in kind of an off time and there was-
n’t anything running at the same time to
promote it,” Kerasotes notes.
Audience awareness is “good and
growing” when it comes to these alterna-
tive events, Kerasotes declares, and the
increasing number of options for alterna-
tive content makes it easier to let people
know what’s waiting for them at the cine-
ma. “If people get used to you having this
additional content, they’ll know to come
look for it.”
“I’ll listen to anyone who has some-
thing to say,” Kerasotes says about the
alternative content distributors he expects
to meet at ShoWest. He also looks for-
ward to hearing feedback from fellow
exhibitors, as alternative events become
more common at theatres across the
country. “It will be interesting to see what
their experiences are, and what other
events they’re participated in.”
WWW.FILMJOURNAL.COM 109APRIL 2008
73850 Dinah Shore Drive, Unit 115, Palm Desert, CA 92211
For more information, call (800) 845-0591 or visit www.caddyproducts.com
Tel: (760) 770-1299 / Fax: (760) 770-1799
bases and leading industry experts.
This reputation of quality and substance,
combined with community dialogue,
makes for a very powerful and unique
partnership. Unlike other research servic-
es that speak to one type of job function
(CEOs) or one type of media vehicle
(e.g., mobile), we are able to speak to
the broader interest of the entertain-
ment industry. Our broad definition
enables us to provide holistic and thor-
ough business intelligence that speaks
directly to all of its members, regardless
of their background, job function or
company affiliation.
ANNOUNCING PREVIEW
Continued from page 106
FJI FJI
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5.
6.
7.
8.
9.
10.
11. "Bmusethk numbersweresohigh inthisparticularcul-
tural group, we saw it as a phenomenal opportunity to be
able to digin deep into culturalheritage and to get into
the ckaPrncuIture and the gnLndrw charre- '"saidC ~ R -
thia McFarlane,president,LatinAmerica, at Nazca Saatchi
& Saatchi and CEO/chairperson forConill.
Tbndra led an effort to give chm& a domesticaudi-
ence, payinghomageto the consumers'Mexian rodeo tra-
ditionand launching %& Cbwadusand a Tundrazo
MusicTour, McFarke said.
As a resuItof the campaign, which combined tradition-
al tactics--such asTVand print-withtheexperientialsmt-
egy,thelhndragrewitsmarketshareandirtcreasedthenum-
ber ofregistrations in key markets where Tutadraul events
were held, Conillsaid.
Conill's push for anotherToyota unit, Lexus,couldn't
bemorediffmt. Theagencysought to conquerthe Iuxu-
rymarketinMiamitoreachaffluentHispanics,whoarecon-
sideredless acculturatedbut very wealthy and who appre-
datearl and culture.
With thatinmind,theapproachrelied onTVfora more
traditionalproduct-focusedmessageas wen as experiential
marketingandevents centeredon artand designto appeal
to Hispanic
For someperspective from the artworld,Conilljoined
forceswith local artistsHectorCad and ChristianDuran,
and asked them to crtate thekview of*thepursuit ofper-
fection in South Florida"with pIugs here and there for
XRxus.
The agency's mlkborationwith the artistsresultedin a
brightly displayedprintcampaignthathadIong-termplace-
ment inthe lifestyle magazine, O m nDrive eniGpaPioL
McFarlane says hershop has seen positive results with
experiential marketing,which she considers the best way
to reach sub-segmentswithin the HispaniccuIture.
"It allows you to cut very finely the audience you are
uWhenyou start
that9swherem e
PICTURE THATr ConllAduertlsing
soldmore LexusesIn Mlamiby
linkingthe brandwith localartists
Hector Cat4and ChristianDuran,
oneexampleofhowalmfngfora
smaller audience can reap benefits.
tryingto get toandreach them withmoreone-on-onemar-
keting," McFarlane said. When you go mass media, you
have to cast a much wider net and you can't get as cultur-
ally oras sub-culturallyspecific."
In Miami, the Conill effort has heIped to move kxus
from the fourth-rankedplayer in the luxury market to the
ladingvehicleduringan 18-month period,McFarImesaid.
Conill'svision of an intricate Hispanic audience target
correspondswith a recent Nielsen Preview study out this
monthtitled, Why M& toHtkpunics?Thereportacknow1-
edges the extreme diversity ofthe Latinomarket, condud-
ing, "Bottomline, here is not one type of Hispanic con-
sumer but many to market to."
Thestudysuggeststhat marketerswho sucoessfully"dis-
sect their Hispanic consumerbase on a scaleof accultura-
tion"wiUbe best positioned to reach their targets.
Veteran agencies and mediaexaxconcurthat mom cul-
turallyfelevant content andmessagingthat addressessub-
segmentsofthe Hispanicpopulationis the bestapproach.
Another componentis maftingadvertisingand marketing
messages that conform to the lives chat Hispania in 2008
actually live.
MARCH 3,2008 I SPECIAL REPORT I ADWEEK MEDIA 27
12. Jeffrey Katzenberg still on 3-D stump Promoting two
DreamWorks titles at Cinema Expo
By Carl DiOrio
June 23, 2008, 08:16 PM ET
AMSTERDAM -- It's a well-traveled act by now, Jeffrey Katzenberg's promo push
for 3-D exhibition.
This time, the DreamWorks Animation topper took his extra-dimensional
tubthumping to Cinema Expo, where he's also promoting two DWA titles.
"One year ago, I stood here and first spoke to you about 3-D," he recalled while
gracefully omitting the scant progress Europe has made in its rollout of digital
projection, let alone 3-D accouterments.
"I think this is the single greatest opportunity in 70 years," Katzenberg said. "Not
since the introduction of Technicolor 70 years ago has there been something so
impactful to what we do."
Although the notion that many of the assembled exhibitors might be playing 3-D
movies anytime soon was perhaps a bit fanciful, the DWA CEO's enthusiasm can
be contagious.
"We hear there are going to be like 10 to 12 movies released in 3-D in 2009,"
said Gerald Buckle, d-cinema manager for regional digital pioneer Odeon
Cinemas. "That's quite an incentive for doing something."
There are fewer than 150 3-D screens sprinkled throughout Europe, compared
with about 1,000 in the U.S.
Hollywood executives dream of a day when they can release 3-D films on
thousands of global screens, but for now studios must split their distribution
efforts between conventional and 3-D prints. And the number of runs in the
former category dwarfs those in the latter.
Katzenberg shared with the exhibs a well-received extended clip from
"Madagascar: Escape 2 Africa," which is set to unspool in December as DWA's
last feature production animated in conventional CGI. He also showed footage
from Easter 2009's "Monsters vs. Aliens," whose 3-D animation represents the
future for DWA.
13. Also Monday, Nielsen PreView execs presented details of a newly released
study showing substantial consumer appetite for 3-D cinema.
Nielsen PreView senior vp Ann Marie Dumais said additional consumer
education about the technology could broaden 3-D interest even further. The
Nielsen Co. is the corporate parent of Nielsen PreView and The Hollywood
Reporter.
14. bout one year ago, a horror film,
Primeval, generated 64% of its overall
total gross in the first weekend of
release. For wide-release movies opening
with greater than $5 million, this puts it high
on the list of films that had the lowest mar-
gin benefit for theatre owners. Why? Typi-
cally, profit sharing of film revenues between
studios and theatres is calculated on a weekly
basis, with a much higher share being given
to a studio (over 85% of ticket price for some
films) in the opening weekend. Typically, for
the life of a movie, the profit eventually aver-
ages out somewhere between 35% and 45%
for most theatre owners, according to indus-
try sources.
To bolster the margins, theatre owners
fall back on concessions. In fact, in terms of
margins, concessions can represent the lion’s
share of profits for theatre owners. Many in
the industry consider the cost of film and the
tickets as more of a loss-leader for the the-
atre owners, the cost of doing business to
attract moviegoers into the theatre, in order
to charge them relatively high prices for
soda, popcorn and candy, among other items.
But what if this scenario could be
improved for theatre owners? What if there
was some insight into which films would
have a higher likelihood to extend sales
beyond opening weekend (thereby providing
the highest margins to theatre owners)?
A new report from Nielsen PreView™,
“Beyond Opening Weekend: How to Maxi-
mize the Margins,” analyzes which demo-
graphics tend to produce the margins that
theatre owners need, and which types of
movies generate the highest margins. Film
Journal International offers this exclusive look
at some of the highlights.
YOUNG MALES AND MARGINS
Young males are the ideal movie target
for studios. In fact, sales of movie tickets
from this demographic significantly outpace
those of other age groups, and begin to fall
significantly after age 24.
But while the under-25 crowd mobs to
theatres, they are no friend to profit margins.
Over 40% of the 12-to-34 segment state that
they very often or often see a movie in the
first week of its release—when the revenue
share equation strongly favors the studios.
All else equal, films that appeal to older
consumers offer an opportunity for a much
higher variable margin on ticket sales for the-
atre owners, as they are more likely to gener-
ate revenue beyond the opening weekend.
For the average film opening at $10 mil-
lion, an additional $2 million to $5 million
in sales will come after the opening weekend
(resulting in an increase of as much as 26 to
76% in post-opening sales) for the film
appealing to older consumers.
THE FEMALE FACTOR
While interest from moviegoers over 25
tends to signal a higher multiple (and profits)
JUNE 2009
Beyond
Opening
Weekend
Nielsen PreView Report Reveals ‘How to Maximize Margins’
Attendduringfirst weekto 10 days
Total 12-17 65-7555-6445-5435-4425-3418-24
35%
24%
23%
30%
28%
25%
35%
23%
41%
44%
16%15%
41%
35%
27%
32%
Often/
Very Often
Rarely/
Never
How to Interpret the Data
The Nielsen analysis incorporates film sales for two years ending September 2007. For the
purposes of this analysis, the variable of interest is the film’s multiple (the quotient of total film
grosses divided by opening weekend grosses).
Films excluded from the analysis were films not released in wide distribution (less than 650
screens), films opening with less than $5 million on opening weekend (due to the higher prob-
ability of outrageously high multiples) and films that received a Golden Globe nomination or
an Oscar nomination,as that affected the post-opening sales (either because of a slower release
schedule or renewed interest in a film, causing it to be put back into theatres).The multiples
were then analyzed for statistical differences based on the demographic appeal of the films.
This study was also supplemented with data from the American Moviegoer study conduct-
ed by Nielsen NRG in 2007, its representative sample of U.S. moviegoers (people having seen
at least one new release in a theatre in the last year).
a
20 WWW.FILMJOURNAL.COM
Attend during first week to 10 days
08-23.qxd 5/11/09 2:40 PM Page 20
15. for theatre owners, there is a difference between
the impact of men and women over 25.
For the average $10 million opening film,
an additional $4 million to $6 million in
sales for cinemas will come after the opening
weekend (a 28% increase on average in post-
opening sales) for the film appealing to older
female consumers—all at wider margins.
The “Beyond Opening Weekend” report
breaks down which types of films appeal
more to older males and which to older
females. (Hint: “Guns ’n’ guts” don’t have
much allure for the older female crowd.)
Other highlights of the Nielsen report
include a “Long-Tail Checklist” of
attributes that tend to bring higher margins;
the impact of major award nominations; a
breakdown of multiples by genre; and general
recommendations for theatre owners.
In the world of movie marketing, it is often
remarked that the big media push, what
most marketing teams are held accountable
for, is aimed at the first week or two of tick-
et sales.
The reasons for this are clear—with
higher ticket margins allocated to the stu-
dios in the earlier weeks of the movie cycle,
sales in the first couple of weeks can make
the biggest difference to the studio’s bottom
lines.
While theatre owners share in the success
of the studios, they are not likely to ever
invest millions of dollars in generating
awareness for the films they are supporting.
Because of this, the real power for the cine-
ma owner is in the choice of film they
choose to distribute and the number of
screens they propose to dedicate to one par-
ticular film over another. Nielsen’s research
provides a guide as to which films are most
likely to go the distance and deliver real dol-
lars to the theatre owner.
Adapted from the NielsenPreview study.
To purchase the full report, please visit
www.nielsenpreview.com.
JUNE 2009 WWW.FILMJOURNAL.COM 21
Average Film Multiple - Men
Films Appealingto
Males>25
3.0
Films Not Appealingto
Males>25
3.0
Average Film Multiple -Women
Films Appealingto
Females>25
2.7
Films Not Appealingto
Females>25
3.2*
*Note: Statistically significant.
Films Appealingto
Older Consumers
2.7
Films Appealingto
Younger Consumers
3.1
Average Film MultipleAverage Film MultipleAverage Film Multiple–WomenAverage Film Multiple–Men
08-23.qxd 5/11/09 2:40 PM Page 21
16. In the United States, alcohol advertising is currently self-regulat-
ed. Many of the restrictions involve the management of the content along
with an explicit desire to limit the overall exposure of this advertising to
those above the legal drinking age (LDA). Currently in the United States,
this age is 21. Some of the restrictions of this advertising content include:
• The message cannot be specifically designed
for a younger-than-21 audience.
• It cannot promote brands based on the effects of the product.
• It must not encourage irresponsible drinking.
However, probably the most difficult aspect of the self-regulation is
not the content of the commercials so much as their delivery.
Current restrictions state that 70% of the audience must be above
the LDA of 21 years, which means that the opportunity afforded
many advertisers is simply not allowed for this industry. In a world
where the fragmentation of media requires companies to aggressively
pursue new methods of engagement with prospective consumers,
many beverage/alcohol companies, because of the above restrictions,
are forced to scrutinize any changes to the mar-
keting program much more carefully than the
average brand. This delay in execution, while
warranted, continues to run the risk of this
industry falling behind in resonance with their
target consumers.
Here we explore such a case, and potentially
how to move forward. In this brief, we ask the question: How might alco-
hol/beverage clients more efficiently advertise in the world of cinema while
acknowledging their unique level of restrictions?
ABOUT TODAY’S MOVIE CONSUMER
According to Nielsen’s American survey of moviegoers, the highest
incidence of moviegoing is attributed to the youngest of consumers, a
point not lost on beverage/alcohol brands.
Incidentally speaking
92% of consumers 12 to 17 attended a movie in a theatre during
2007. For consumers aged 18 to 24, that number is 84%. As age increas-
es, the incidence of moviegoing continues to decline.
The strongest contenders
With average movie theatre visitation at 10 times per year in 2007,
the 18- to 24-year-old represents the strongest moviegoer among all
Americans.
KEY INSIGHT:
The LDA demarcation of 21 is situated amongst the highest number
of impressions (admissions) of any demographic. Utilizing these impres-
sions will require careful targeting.
ABOUT THE RATINGS
To some extent, MPAA ratings provide some insight into which
movies can effectively reach out to our 21+ segment. R ratings are best
suited, G-rated movies are least, but in many ways, the MPAA is not
effectively designed for this targeting.
Rating the ratings
While it makes sense that R-rated films come in as the top-rated for
reaching 21+ individuals, this number is not statistically different than
that of PG-13. In essence, PG-13 films are just as likely to bring in a
21+ audience as an R-rated movie is, since much PG-13 content appeals
to older consumers as well.
KEY INSIGHT:
Beverage/alcohol marketers and agencies looking to harness the
power of cinema advertising need to look beyond just the MPAA rating
to effectively harness this medium.
OCTOBER 200948 WWW.FILMJOURNAL.COM
&
Total
84%
55-6445-5435-4425-3418-2412-17
92% 78%70%
9.1
7.9
44%52%71%73%
6.5
8.7
10.0
7.2
7.6
6.6
65+
G RPG-13PG
53%
36%
62%
71%
Total
24
55-6445-5435-4425-3418-2412-17
25 32176
92%
70%
16163133
71%
78%
84%
73%
44%
52%
65+
Coming
of Age
Movie Advertising Techniques
for the 21+ Crowd
Moviegoing Incidence in Past 12
Months (% seeing one or more films)
Percent of Tickets
from Audiences 21+
Moviegoer Incidence %
Annual Average Moviegoing
(# of movies seen per year)
Estimated Moviegoer
Population Size (MM)
This article is adapted from a report published by Nielsen PreView. For more
information on this and other Nielsen research, visit more.preview@nielsen.com.
a a
32-49.qxd 9/14/09 3:44 PM Page 48
17. BarackObamamight be outspending him on
TV,but John McCain may have some effective,
cheaper options for advertising in the crucial
battleground states.
A new Nielsen PreView study scrutinizing
the media consumption habits of U.S.voters in
13 of the most hotly contested states found that
strategic media buying in cable could yield
easy-to-overlook channels that offer high
concentrations of viewers belonging to partic-
ular political parties.
For instance,the automotive-themed cable
network Speed Channel managed to attract
higher concentrations of both Republican and
independent voters than any other channel —
even more than the 24-hour news networks.
That could be good news for McCain as he
seeks to appeal to Republicans and independ-
ents even as he trails Obama in media spending
by a ratio of 3-to-1 in the battleground states,
according to the Wisconsin Advertising Pro-
ject.The study found that Obama and McCain
together spent $28 million from Sept.28-
Oct.4 on TV ads.
The PreView study,based on an online sur-
vey conducted Sept.30 of 40,000 registered
voters,highlights the most efficient options for
reaching viewers strictly by their political affil-
iation in the states where the bulk of marketing
and campaigning will be targeted in the final
weeks before the Nov.4 election.
Thefindingsalsoshednewlightonlong-
heldassumptionsaboutthepoliticalcomposi-
tionofaudiencesforsomeprominentbroad-
castandcablechannels.WhileCNNand
MSNBC—oftencriticizedasleft-leaningnet-
works—finishedamongthetop10highest
concentrationsofDemocrat-registeredviewers
inbattlegroundstates,bothweretoppedby
entertainmentchannelsBETandVH1.
But even more surprising was the emer-
gence of Speed as the leading source for
Republican viewers,who were 52% likelier to
watch the channel than the average U.S.
household,beating out Fox News Channel —
long considered a Republican favorite —
which finished second with 48%.
However,when measured across all 50
states,Fox News topped Speed 48%-28%.
Other TV favorites for Republicans on the
national level included Golf Channel,which
finished second to Fox News at 32%,followed
by Hallmark Channel at 29%.
Speed also had the highest concentration of
independent voters in battleground states,
with 72%.Other top finishers among inde-
pendents included CNBC (48%),Travel Chan-
nel (44%) and CNN Headline News (33%).
As for Speed’s surprising combination of
Republican and independent voters,likely fac-
tors include the prominence of NASCAR
among red staters and a growing corps of
younger viewers to explain the indie influx.
OntheDemocratside,CNNwasasolidthird
(39%)behindBETandVH1.VH1’sscheduleis
filledwithfizzy,celebrity-drivenrealityshows
thatprobablydon’tplaybigwithrightwingers,
whileBET’spredominantlyblackaudiences
tendtoberegisteredDemocrats.
Although the broadcast networks boasted
the highest totals of political parties because
they have the biggest audiences, that makes
them a less-targeted, more-expensive propo-
sition. While a whopping 84% of Republicans
in the battleground states that were surveyed
reported watching Fox Broadcasting Co. in
comparison with the 50% that did same for
Fox News, Republican viewers were 48%
more likely to watch than the average house-
hold — three times more than they did Fox
Broadcasting.
Consequently,if McCain were to buy Fox
Broadcasting airtime,he likely would be
paying more to reach viewers he doesn’t need
to target.∂
By Andrew Wallenstein
and James Li
COVER STORY
TOP 5 NETWORKS
Channel favorites in battleground states
REPUBLICANS DEMOCRATS INDEPENDENTS
25
17
30
22
33
16
48
50
52
9 60
8
72
10
41
15
39
47
37
18
35
5
48
25
44
19
33
35
32
16
Speed Channel
Fox News
CMT
Hallmark Channel
Travel Channel
BET
VH 1
CNN
Travel Channel
SoapNet
Speed Channel
CNBC
Travel Channel
CNN Headline News
CMT
14 THR.COM 10.24.08
Unlikely TV networks
emerge as hot spots to
reach partisan viewers
Battlegroundmarketing
18. For audience
composition
across major
parties on a
national level
Thepresidentialcandidates’TVadvertisingstrategiesaredeparting
fromtheirtraditionalfocusonthebattlegroundstatestoatruly
nationalapproach.
Millionsofdollarsarestillbeingspenttoswayindependentand
undecidedvotersinsuchstatesasFlorida,Ohio,VirginiaandPennsyl-
vaniathatcouldgoeitherway.Butmillionsmorearegoingtothe
broadcastnetworksdespitethehighercostsofnational-reachblurbs.
Thegame-changerhasbeenthedecisionbyBarackObama’scam-
paigntooptoutofpublicfinancingandthemassiveamountsithas
raised—$150millioninSeptemberalone.
TobeBerkovitz,anassociatedeanandadvertisingprofessorat
BostonUniversity,doesn’tseeObamahavingtomakethecustomary
budgetarychoicesamongTV,radioordirectresponse.
“Usually,you’vegotalltheseoptionsandalimitedamountofthe
pie,”Berkovitzsaid.“Obamahastheentirepiefactory.Strategically,
Obamacandoitall.”
TheObamacampaignraisedthestakesduringthesummer,whenit
poniedup$4millionfor30-secondspotsduringNBC’sSummer
Olympicstelecasts.Itwasthefirsttimesince1996thatanypresiden-
tialspotshadrunonbroadcastTV.Thatwasimmediatelyansweredby
theMcCaincampaign,whichspent$5milliononitsownads.
Sincethen,ObamahasoutspentMcCainnotonlyinbattleground
statesbutalsoonthenationalairwaves.Obama,forexample,wasfor
atimeallalonerunningcampaignadsinthecrucialstateofFlorida.
Spendingfurtherincreasedwithahalf-hourtimebuyWednesdayon
CBS,NBCandFox,whereObamawilltalktothenationsixdaysbefore
ElectionDay.It’sthefirsttimebuysince1992,whenRossPerotpur-
chasedaseriesof30-minuteblocks.
ConventionalwisdomwouldhaveitthatObamawouldwantto
addresstheuncommittedandindependentsinbattlegroundstates
thatcouldgoblueNov.4.That’swherethebulkofthemoneyisspent,
notonlyforObamabutalsoforMcCain.
ButAaronCohen,chiefmedianegotiatoratNewYork-basedad
buyerHorizonMedia,thinksthenationalbuysmakesensegiventhe
campaignbeingflushwithcash.
“Itwouldbehardtospendthatkindofmoneyonapurelylocal
level,”hesaid.“Thenationalbuyworkstoreinforcethebluestates
withouthavingtospendlocalmoney.”
MarkMcKinnon,aformerBushandMcCaincampaignstrategistwho
isvicechairmanofPublicStrategies,saidtheBushcampaignemployed
anationalcablestrategy.
“We found it to be very effective because even though it reached
voters who weren’t in target states, it energized supporters and
enhanced our fundraising,” he said.“It is clearly having the same
effect for Obama with greater reach through a national broadcast
campaign.”
TheMcCaincampaignhastried,evenwithlimitedfunding,togo
head-to-headwithObama.WhileitspentmoreontheOlympicsthan
Obama,ithasn’tyetjumpedinwiththe$3million-$4millionforafour-
networktimebuythatitwouldneed.
ButMcKinnondoesn’tthinkthatinpresidentialcampaignsthere’s
much ROI for TV ads.
“Ads contribute to the overall narrative of the campaign and can
be used effectively as a tactical tool to shape press coverage,” he
said.“But overall, a lot of money is wasted.”
AdsacrossAmerica
10.24.08 THE HOLLYWOOD REPORTER 15
BATTLEGROUND: BROADCAST NETS
Audience composition across major parties
ABC NBC Fox
CBS The CW
7
81
-1
75
0
76
12
81
-2
71
6
77
2
741
73
16
84
-1
72
8
78
-3
13
9
15
9
78
14
16
BATTLEGROUND: 24-HOUR NEWS
Audience composition across major parties
CNN Fox News CNN Headline News
MSNBC CNBC
39
47
2
34
25
42
48
50
-18
28-2
33
20
31
33
35
6
21
14
22 19
20
25
21
30
25
48
25
4
27
By Paul J. Gough
Obama spreads the wealth of
fundraising surplus countrywide
52
9
Republican viewers are 52% more likely to watch
Speed Channel than the average U.S. viewer
9% of U.S. viewers surveyed reported watching
Speed Channel over a seven-day period ending
Sept. 30.
Republicans
Democrats
Independents
Source: NielsenPreView.com
10-24_electionads_COVER2 c 10/23/08 2:41 PM Page 2
20. Such programs not only increase reader interest in the publication — they also serve a
data mining function. MyTHR, for example, asks would-be voters to log-in, so the
magazine can tell exactly which readers are voting and on what subjects.
“This is very in-line with everything we're seeing in the industry,” noted Ann Marie
Dumais, SVP of Nielsen PreView. “Customers want to be in charge of what movies they
see and what TV shows they watch, so why not be in charge of the stories they read?”
21. Staff report
VeteranjournalistStephenGal-
lowayhasbeennamedExecutive
Editor-Features&EventsatThe
HollywoodReporter.
GallowayjoinedTheReporteras
areporterin1993andhasserved
asfilmeditorandexecutiveeditor.
He’sbeenaneditor-at-largesince
1999,writingmuchofthepaper’s
awards-seasoncoverageandfilm
featuresaswellascoordinatingthe
paper’sround-tablediscussions
withtheindustry’sleadingexecu-
tivesandtalent.
Galloway will be responsible for
shepherding about 200 special
features a year,ranging from film
festival and market sections to
stand-alone issues devoted to
Women in Entertainment,Next
Generation and the Key Art
Awards.He will oversee the 10-
person features department led by
features managing editor
Matthew Belloni.
“As we continue to ramp up
our presence around the globe
and to focus on a wider range of
creative initiatives to drive our
business, we are thrilled to have a
journalist as versatile and well-
respected to head one of the most
important units in the THR port-
folio,” The Reporter publisher
Eric Mika said.
“Stephenbringsamultiplicity
oftalentstohisnewroles,from
consummateinterviewingskillsto
By Alex S. Dai
SHANGHAI,China—Asthe
ShanghaiInternationalFilmFesti-
valannounceditsearlylineupfor
thisyear’sevent,theorganizing
committeehaspermanently
bannedSharonStoneandherfilms
becauseofhercommentsabout
theSichuanearthquake,aSIFF
spokesmansaidThursday.
Stoneservedonthejuryatthe
2007festivalbutearnedherselfthe
banbystatingthattheearthquake
mighthavebeen“karma”for
China’streatmentofTibet.The
officialdeathtollfromtheMay12
earthquakeexceeded68,000on
Thursday,withmillionsmoreleft
homeless.
Stonealsowasdroppedfrom
localChristianDiorads,forwhich
sheisaspokeswoman,according
tothestate-runEnglish-language
newspaperChinaDaily.
SIFF,meanwhile,releasedalist
of23filmsthatwillscreenduring
thefest,setforJune14-22.∂
By Carl DiOrio
M
arketingofdramaticfilms
benefitsfromamixof
mediabuysskewingheavily
towardlocaltelevision,whilecom-
edycampaignsgetbiggerbangfor
thebuckfromnetworkspots,
accordingtoarecentlyissued
researchreport.
TheNielsenPreViewreport,
basedonananalysisof400wide-
releasemoviesreleasefromSep-
tember2005-December,assessed
therelativeresultsofaddollars
spentinfiveareas:network,cable
andlocalTV;newspapers;andthe
Internetandothernewmedia.
Thestudygroupedfilmsstatis-
ticallybasedontheamountofdol-
larsspentinthosecategories,then
comparedtheapproachesforcost
efficiencyasmeasuredbyresulting
boxoffice.Itwaslaunchedin
March,andareportwaspostedto
NielsenPreView’sWebsite.
“Thishighlightsthatniche
audienceslikedramaneedniche
mediachoices,”NielsenPreView’s
DanO’Toolesaid.“Conversely,
broadappealgenreslikecomedy
needbroadreachvehicleslikenet-
work.Therealityis,however,that
mostmarketersarenotexecuting
totheirfullpotential(and)mar-
keterswhoarewillingtorethink
andexecutenewmediastrategies
standtoincreasemediaefficiency
byover50%.”
NielsenPreViewresearchdraws
fromacrosstheNielsenCo.’sfami-
lyofdataandinformationbusi-
nesses,includingNielsenMedia
Researchandotherunits.Nielsen
BusinessMediaisparentcompany
ofTheHollywoodReporter.∂
INSIDE TRACK
CLIPS
‘CSNY’ATHREE-WAYSTREET
RoadsideAttractions,Lionsgate
andShangri-LaEntertainment
areinfinalnegotiationstoform
ajointventuretodistribute
“CSNY:DejaVu,”afilmaboutthe
banddirectedbyNeilYoung,on
July25intheU.S.Roadsidewill
handlethetheatricalrelease
simultaneouslywithVOD,which
willbehandledbyLionsgate.
PEACE LETS‘SECRET’OUT
PeaceArchEntertainmenthas
pickedupRogerGrossman’s
debutfeature“WhatWeDoIs
Secret,”atributetoLosAngeles’
1970spunkrockscene,fora
summerrelease.PeaceArchsaid
itacquiredallNorthAmerican
rightstothefeaturebiopic
aboutDarbyCrash,frontmanfor
punkbandtheGerms.Shane
WestplaysCrash,whose1980
suicideledtotheband’sdemise.
PeaceArchwillreleasethefilm
Aug.8inNewYork,aweeklater
inChicagoandAug.23inLos
Angeles.
SULLIVAN IN AT CBS FILMS
ReidSullivanhasjoinedCBS
FilmsasCFO.Hewillreportto
BruceTobey,execvpandCOOof
thenewlylaunched
filmunitofCBS
Corp.Sullivanwasat
FirstLookStudios,
wherehewasCFO.
‘JOURNEY’GETS LAFF BOW
Walden Media and New Line’s
“Journey to the Center of the
Earth 3D” will make its world
premiere June 29 as part of the
Los Angeles Film Festival’s
annual Family Day celebration
at the Mann Village Theatre in
Westwood. The premiere is
open to the public.
HONORS TO REARDON
RobertaReardonwillbeamong
thehonoreesJune29attheJew-
ishLaborCommittee’sannual
awardsbrunchinCenturyCity.
4 THR.COM 05.30.08
SharonStonewasamemberoftheShanghai
InternationalFilmFestival’sjuryin2007.
Local drama and broad comedy
Studyshowsthatnicheaudiencesneednichemedia-marketingchoices
Shanghai
bansStone
fromfestival
GallowayheadsTHRfeatures,events
Stephen
Galloway
Most Common
Newspapersareeffectiveforfilmads
WORTH THE MONEY
% Network
% Cable
% Local
% Newspaper
% Alternative
% Network
% Cable
% Local
% Newspaper
% Alternative
Most
common
Most
efficient
Most
common
Most
efficient
35
23
12
16
13
24
3119
13
13
29
25
28
10
8
39
25
16
9
11
COMEDIES
DRAMAS
Source: Nielsen PreView.com
continued on page 42
STONEPHOTO:WOJTEKRADWANSKI/AFP/GETTYIMAGES
05-30W_p4b 5/29/08 7:22 PM Page 1
