Regarded as one of the most powerful industries today, the entertainment industry has begun to demonstrate its potential with generational, economic, social and of course technological changes.
It is difficult to think of an entertainment product without short-term utility, to think about the return on investment that instant fame generates, to think about audience satisfaction at the expense of marketing strategies and especially the question that seems to be left out of this game Ethics ?, Business ?, Simply marketing strategies ?. Far from following ethical paradigms and human values, the entertainment industry seeks to exploit the needs of the audience by considering a place on Maslow's scale of needs. Therefore, the fight against disposable income for consumer time is increasingly aggressive and within the analysis of the industry proposed by Porter, the substitute competitors seem to gain more strength due to the variety of sectors that comprise it.
Competition for consumer interests is reaching higher levels, and that is when traditional marketing channels considered as ATL have become saturated, and non-traditional media stand out for creativity, but leave economic effectiveness aside. As it always happens, necessity makes creation, so when it seemed that there were no new spaces to spread the message, new media emerge, but the message must be more consistent than ever.
According to Lieberman (2007, p27) "the entertainment industry is in second place among the most exported in the United States and generates almost 500 billion dollars worldwide."; data supported by Jack Valenti 4, president of the Motion Picture Association of America (MPAA), is the only US industry that has a surplus and not a deficit, therefore content distribution channels are becoming stronger despite the restrictions and conflicts that exist between producers, distributors and exhibitors worldwide given the economic interests that exist behind each product.
Given the conditions of competition within the film industry, which has increased dramatically since the beginning of 2001, four to five films that fight for first place are released each week; Still, the audience is unforgivable when choosing their option. There are films that are first choice and the rest will run within the top ten with a very small option to eventually become first place.
THE MARKETING OF ENTERTAINMENT
There are necessary considerations to be able to differentiate entertainment marketing from other types of marketing, placing the most important ones according to Albert Lieberman's considerations:
- Given that it is consumed with speed, there is no time to do an extensive market test. The reaction of the audience is subjective in relation to the impact it will have on box office results. Although there are tools that allow predicting consumer habits based on trends, references in social networks, economic indicators and exploratory research; There is no tool that ensures success or failure, other than attracting the audience based on the message spread in advertising. With movies, every movement that indicates a possible failure must be countered immediately given that the regular life cycle is 3-4 weeks effective for your film screening. While entertainment marketing shares the search for the right genre with traditional marketing,the production of entertainment content is based on creation; that is why it has the possibility of human failure. Launching a product on the market often results from a balance of creativity and chance, focused on selling an experience rather than a product. In order for the income to turn out, the audience must first live the experience in order to become a blockbuster. Like fashion, entertainment is trend-based and like this industry, seasons are stable but not models presented, so making assumptions about movie genres that have proven successful in the hopes of repeating that success is unlikely and risky. Technology plays a major factor in the content delivery category.New generations have shown that they have the power to define the success and failure of new film products, as well as genres that were thought to be forgotten, such as musicals and horror.
As mentioned above, it is necessary to keep in mind that each of these factors impacts each entertainment product. Above and beyond all of this is the biggest challenge facing every launch and every promotion: competition with all other types of entertainment.
THE FOUR FANTASTIC: THE FOUR C`S OF ENTERTAINMENT
Now, to define the analysis of an entertainment product, it must be taken into account that a product derived from entertainment:
Given this parameter, it is established that there are four rules that define the structure that defines the entertainment industry: Content, channel, consumption and convergence.
1.- Content
It is the soul of the entertainment product that will truly define a formula that could result in success or failure. Although the original content is made with a specific target in mind (Latino community, teens, children, etc.), it does not mean that the target will accept it. The content should create a connection that translates into an experience through the development of a creative idea that translates into an experience; the talent to create, develop and make an idea work; supporting and utilizing technology to help complete production and the perishability of the product.
If the content is not original, it usually comes from: a license to be regionalized or a remake to be adapted to a new generation. Frequently, the first falls on reailty shows that seek to be adapted to new markets, for example Latin American Idol for the television industry, and the second seeks to be adapted to new targets, such as the remake of "Fame" in the industry. cinematographic. However, again, branding will mean little if the content doesn't fit the experience the audience is looking for.
2.- Channel:
It refers to the distribution of the entertainment product and given the technological diversity that surrounds the target, there are two elements that are part of the delivery process: the where and the how. For example, the digital transmission of a TV program such as “CSI” 5 through the CBS website 6, the channel is CBS while the “CSI” program is the consumable.
Consumers in 2010 have at their disposal a vast series of choices and the means with which they can access content, broadband 7 being the main transmitter of the signal, after television and cinema. Likewise, satellite, cable, DVR and video on demand continue to grow by leaps and bounds seeking penetration in Latin markets.
3.- Consumption.
The finished product as such, in this phase enters the process of marketing and advertising the content seen from a different perspective than distribution (channel). The experts in the two aforementioned areas will manage to give life to licensing and merchandising models if the content allows it. Consumption can range from purchasing a ticket to see "Iron Man 2" to acquiring a magazine with Robert Downey Jr. on the cover or an action figure obtained at Mc Donalds Happy Meal. In other words, consumption implies the action of exploiting all the tangible and intangible characteristics of the product. However, the strategies to consume the content must be moderate to avoid falling into saturation.
4.- Convergence.
It is the point where content and consumption converge in a digital format. As a complement to the channel, convergence not only seeks to distribute content online or through mobile platforms, but also aims to distribute content to be consumed through the formats mentioned above. A clear example of this is itunes or the mobile content download services for a specific entertainment product.
WHO SOLD TO HOLLYWOOD?
THE ART OF CO-BRANDING
Starting with the basics where a movie costs $ 100 million to produce, the budget for marketing and advertising can range from $ 25 million to $ 50 million. If the film is alive (a long and successful screening in theaters and can sustain a box office success, that figure no longer has an anchor that grips it to the ground. The entire budget may disappear in four weeks or less depending on the length of the projection of the film in theaters and how far the film is spread, of course this largely depends on the content to be projected and of course the way it is presented.
Tiiu Luk in the book "Film Marketing: A New Vision that Comes to Life" reports that although the marketing budget was high, even because of a dollar of advertising for three dollars of production, the awareness 7 that a film generates falls on the interest generated by associated brands that carry out effective co-branding. A clear example of this is the case of Golden Eye (released in 1996) where the iconic James Bond character was related by brands such as Yves St. Laurent, BMW, Omega watches and other aspirational brands that used Bond as a vehicle to advertising, showing Agent 007 in their marketing campaigns generating unwanted publicity for the tape.
STRATEGY, STRATEGY, STRATEGY
According to Friedman (2004), the process by which the marketing campaign for a film is carried out has four axes: creative advertising, advertising and promotion, market research, media budgeting and international distribution. It must be taken into account that this process runs hand in hand with the three stages of film production: Pre-production, production and post-production.
1.- Creative advertising
The creative process involving the design of image and message that the film will send to its potential audience begins once the film has been given the green light.
During the pre-production phase, the marketing team will need to use all of the resources available at that time to create the first poster and teaser sketches. In the production process, you will have a clearer idea about the potential of the film and the identity that advertising will take through your campaign. The campaign pre-test is done around a purely exploratory market research of a qualitative nature that will seek to measure the effectiveness of the campaign within its target.
2.- Advertising and Promotion
In this stage that appears close to production processes, the role of public relations is the main factor since two different groups must be satisfied: the media and the potential audience. On the one hand, the media is expecting "juicy" stories about the elements of the production: stories from the actors, interviews with the director, production challenges, among others. Of course, there are stronger strategies that will make the film stand out, for example when it is intended to form couples off-set between the protagonists of a specific film waiting to attract a female audience. This strategy was noted in films such as Star Wars Episode II (Natalie Portman / Hayden Christensen), Twilight, Mr. And Mrs.Smith (Angelina Jolie / Brad Pitt baptized by the media as "Brangelina") and Gigli (Jennifer Lopez / Ben Affleck, baptized as "Bennifer"). However, they are rarely effective on the result on the tape, in opposite cases the couple named by the media as "Bennifer" negatively influenced the results of Gigli, while the duo formed by "Brangelina" had a positive impact on the exhibition of Mr. And Mrs. Smith.
3.- Market research
Just like during the creative stage, they do a hearing test, but this time it's about content and connecting with the audience. This process is carried out during the post-production process when the tape is almost finished. Through websites and universities, sample groups are recruited to present the film and hear their views. The decisions of these groups often influence the final result as it could be seen in the remake of "Halloween" in 2006 when it was presented to a group mainly made up of 18-year-old boys and girls who decided that the film should have more sequences. with the killer and an alternate ending. These opinions were taken into account and the result was reflected during the first weekend with a collection of USD $ 26.2 million
4.- Budget and means
This stage is usually done since the marketing department discovers the potential of the film. Once this happens, you should consider:
- The selection of media is made based on the potential of the film in the results of the box office (box office).First place: TV (cable and open) Later: print publications, radio, outdoor, internet. In relation to the amount of investment for advertising, it is determined around the Season and the Competition. Despite the fact that the purchase is made upfront, the “bombardment” intensifies from 6 to 2 months before the premiere of the film. Advertising includes creative costs, material development costs, media selection, among others.
PREDICTING THE SCENARIOS
Given the complexity to measure variables around film success or failure, it is a controversial subject where there are tools that have a limited power to project possible scenarios, but in no way ensure success or failure. Some of the mostly used methods are:
- Specialized forecasting websites. Through these specialized forecasts, highlights www.boxofficeguru.com created by Gitesh Pandya, an entertainment economist, who uses a mechanism based on the following variables: the monetary value of the actor at the box office, the profitability of the brand (title), the theme of the film and of course if it comes from original content, if it is a sequel or remake. Once the titles that precede the brand-new film are grouped together, a correlational analysis is made to give a clearer picture.
- Of course, there is the social factor that allows us to define what level of anticipation the film could have. This "social factor" can be easily expressed on sites such as Youtube, Twitter, Hi5, Myspace, among others.
Seen from an economic and objective point of view, marketability is present in the first section while playability is feasible to locate in the second. However, the formula to be able to predict a correct margin was recently published. As reported by BBC News, the researchers studied three million tweets about 25 different films and discovered that the production rate of the messages could be used to predict the box office of the films before they are released. In revealing his findings, the experiment leader, Bernardo Huberman ,He said the predictions were extremely close, so they could also be used to track successes before they hit theaters. As an example, Huberman said the system estimated that the movie The Crazies would reach $ 16.8 million in its first weekend in the United States, a minimal difference from the $ 16.06 it finally reached. Something similar happened with the romantic drama Dear John that raised $ 30.46 million in its first three days, when the system had estimated a collection of 30.71 million. On this strange system, the team explained that they were able to make their blockbuster predictions by analyzing the stream of tweets about a specific movie as its release date approached.
Despite the closeness of the predictions, you should be aware that this is just one more tool and therefore, the instability to measure emotional factors that impact consumer behavior are in force at all times.
On D-Day (premiere), there are three possible scenarios: a blockbuster (produces more money than expected), a "predicted success", a flop (failure), or a potential success. If a blockbuster turns out, the proposed plan is continued, with the option of purchasing more spaces to increase awareness and, at the same time, interviews that provide indirect advertising are intensified. In order to make strategic decisions regarding the execution of the advertising campaign at this stage, three factors must be taken into account: the criticism and the reaction of the audience as part of playability, and the result of the box office, or box office, as a result of the marketability process. Once this is established, the following can happen:
- Flor: If the film had bad reviews (more than 70% of the total generated prior to its premiere), had a bad reaction from the audience and had a bad reception at the box office (less than 40% of its production cost), said film considered insurmountable at least during its film exhibition. No more effort is made than planned to keep it afloat and recover a proportionate share of production.
- If good reviews were obtained (close to 80%), good reaction from the audience but less than expected results, the study decides to direct efforts to "exploit" the content. Media and distribution strategy redirected in hopes of capturing more audience. It should be noted that for these products playability is the point of connection between the audience and the film. When the criticism is good (more than 60%) and the reaction of the audience as well, the box office success is imminent given the synergy between marketability and playability. Marketing efforts are increased, but they are moderate since at this point buzz marketing (word of mouth advertising) is seen as an involuntary push.
It should be noted that there are some specific rules that apply to some film genres and their performance at the box office. In general, action blockbusters like "Transformers" are often accompanied by bad reviews but tremendous audience reaction. Likewise, horror and superhero movies have their strongest income during the first weekend before notably dropping their second exhibition. For example, the last remake of "Friday the 13th" had an income of USD $ 40 million during its premiere, but it fell almost 70% the following week. Another genre that is difficult to sell outside the United States is teen comedies, since the cultural factor of the audience often does not allow creating the desired connection between the target and the content.
WEBS AND NODES, THE ROLE OF SOCIAL NETWORKS
In order to understand the impact that viral marketing has on the performance of an advertising campaign, it is necessary to interpret the components of buzz marketing, better known as word of mouth advertising. The components of this "web" tends towards its nodes, the network hubs (NH), which seek to spread a message among the other elements of its web. Among the characteristics that surround them is that:
- With NHs, “transmitting” is not the same as “connecting”. Finding an opinion leader among NHs is complex, but there are practical approaches that allow them to be identified. Once they have found the value of the product, it is imperative to let them bring the brand closer together.To understand its relationship with consumer behavior, it is vital
- Categorize them, locate them and detect them “in the field”. To connect with them, timing is vital to achieve them before the competition. They LOVE to be the first to know about something. The information they are given has to be juicy enough to “ give what to talk about. "Encourage them to teach or educate other members of the network through discussions or interacting. Give them" the facts ", that is: the basics that allow us to create new questions. Do not saturate them or press them. It must be remembered that they are independent, but also influential
CATEGORIZING NETWORK HUBS
To categorize NHs, you have to keep in mind their strategic divisions: Regular Hubs and Mega Hubs. Both are divided into two categories: experts, who are those who have followers who listen to them due to their technical knowledge in a specific area; and the social ones, who are those who have followers due to their charisma and reliability, without necessarily being experts in any technical area. In the following table it is possible to see an example of its application.
| Experts | Social | |
| Regular Hub (ordinary people) | Juan López (Advises his office colleagues regarding Apple brand computers) | Mrs. María López (Despite not being a counselor, people go to her for her charisma) |
| Mega Hub (media, politicians, celebrities, etc.) |
Steve Jobs |
Cristina (Her charisma allows her to establish a connection with the audience). |
APPLYING VIRAL MARKETING
The root of the definition of "viral marketing" has to do with the infection process typical of a virus. Applied to the context of advertising, it must be taken into account that the "Virus" corresponds to the advertising strategy (message), within this infection process, the "First Infected" are Network Hubs and the "Provoked Epidemic" is linked to message between NHs connections.
For this process to be effective, the following points must be considered:
- Make the film part of the communication process. Create universes, connect characters to the real world. That is, to structure an alternate reality. To make consumers interact. This structure creates more buzz marketing. Make the buzz effective. "Spread the word." You have to be creative, not irritating or hostile.
As a complement to viral marketing, creativity plays an important point when designing a strategy that connects the potential audience of the film with the content, such is the case of the film "Cloverfield" released in January 2008 and which featured a Unique viral marketing campaign of its kind when it was presented during the premiere of the films "Transformers" in the summer of 2007. The highlights of this campaign included:
- Teaser 1-18-08 that was the trigger for the campaign. Four websites and three “personal” sites creating parallel / real stories (conspiracy and real people) that connected to the plot of the film in real time, synchronized with premiere of the movie. He had a virtual interaction rather than a physical one. In other words, their nodes interacted over the Internet rather than in physical spaces. Minimum cost of execution ("home video" with distribution via social networks) Creatively, it gave too much information and too many questions that remained unanswered. Effective campaign for the study, entertaining for social media, but the film was lackluster for the regular audience (not generated by the campaign). Fans eroded quickly and did not repeat. The prestige and cunning of director JJ Abrams, famous for the mystery of the series "Lost",Promoted the content of the campaign. NHs identified themselves from the beginning looking for information that would give rise to talks and debates in various forums (Youtube, myspace mainly). The reward: exclusive premiere passes. Much hype, satisfactory box office but did not survive the expectations raised in the advertising campaign. The first weekend's collection (50% of the total earned in the US) comes from fans generated by the strategy viral.The collection for the first weekend (50% of the total earned in the US) comes from fans generated by the viral strategy.The collection for the first weekend (50% of the total earned in the US) comes from fans generated by the viral strategy.
Now, the impact of this campaign for the film accounted for 50% of its recorded income in the United States, however, the playability factor after the first weekend showed that it only connected with fans of the film. Word of mouth advertising proved to be stronger in the campaign than in the content of the tape itself.
The second case presented reflects a viral marketing strategy for the film The Dark Knight. This campaign was considered an alternate reality experience that allowed 10 million players to experience the Gotham City universe seen from the point of view of the characters The Joker and Harvey Dent. The following points stand out:
- The comic and sci-fi fan base are likely to repeat the experience of the tape as long as the content of the tape manages to create a connection between the experience lived in the campaign and the final product. of creating awareness, but it did not represent the main reason for the massive collection. It should be seen as an impulse and experience campaign. The use of the flash mob allowed the experience to be extended to public spaces. The flash mob allowed to include new market segments regardless of whether they were fans or not. More physical interaction than virtualThe virtual creation of the Gotham City universe as a real place in our context, with "real" situations and characters (the "Joker" approach,"Harvey Dent" and Bruce Wayne) created an immediate connection with the fans who followed the campaign as long as it remained in force. The novelty of a viral game increased the number of followers by giving them "power" to live the experience from the good side. and bad. Likewise, the continuity and the planning made with the appropriate timing allowed the expansion of the experience, giving relevance to the weight of the film. It infected the regular hubs, but finally managed to reach the mega hubs (experts and media) predictably.It infected the regular hubs, but eventually managed to reach the mega hubs (experts and media) predictably.It infected the regular hubs, but eventually managed to reach the mega hubs (experts and media) predictably.
Consequently, at the marketability level, the campaign proved to be effective, being responsible for raising nearly USD $ 158 million during the first weekend of the exhibition week, representing 30% of its total income. However, contrary to Cloverfield, the film demonstrated an immediate connection with the audience, which allowed it to generate USD $ 533 million during its 33 weeks of exhibition.
THEN THE POINT IS…
Understanding the entertainment industry implies understanding the environment that surrounds the Roman Circus, where it is not possible to understand the audience 100%, but an approach to their needs is sought. In relation to creativity, it is imperative to manage it according to two interests: those of the audience and those of the producer; but remembering the purpose in each section: while one seeks entertainment, the other seeks a return on their investment in a short term where there is no room for error. Advertising strategies within movie marketing tend to move according to generational experiences, that is,Advances in non-traditional media have proven to be effective if they are executed with a quasi-perfect strategy and a timing that allows us to live the experience of the universe that the entertainment product presents. In this industry a highly successful product can be celebrated, but the failures and the economic losses are more latent and millionaire. At the end of the day, despite the laughter and the smell of popcorn, you have to remember the words of Donald Trump: "It is not personal, business is business" and indeed, a risky business.business is business ”and indeed, a risky business.business is business ”and indeed, a risky business.
Likewise, it must be taken into account that fashion-dependent products can be cyclical and so-called lacklusters can become collectors' items, since the life cycle of a producer or director is very unstable and although at one time of his career he did not have the fame to be able to carry a production in the following years and after a blockbuster the films that were only flower become instantly must-have items.
This factor is undoubtedly a daily experience on television and in the cinema, for example, actor Jim Carrey has more than 30 films to his credit and before his blockbuster "Ace Ventura Pet Detective" the previous productions were simply B-movies or without consequence. After becoming a comedy superstar, the previous films began to appear now as movies for television and for some fanatical movies that they must have if they really consider themselves "fans" of Jim Carrey.
It should be considered that the entertainment industry fuels various commercial initiatives not affiliated to it and that in many cases it does not depend exclusively but that if they take advantage of entertainment products and that this process in a free market economy makes society Look for yourself economic outlets that do not necessarily pay royalties or proportional parts to producers and that are not necessarily outside the law, is what can be called "the magic of the entertainment industry."
BIBLIOGRAPHIC REFERENCES
Michael E. Porter (1998). Competitive strategy techniques for analyzing industries and competitors. USES. Free Press.
Abraham Maslow. (2009). Abraham Maslow: life and teachings of the creator of humanistic psychology. Spain. Kairos.
Download the original file
