DCM announces ROI insight proving cinema’s campaign effectiveness

    Author Zoe Aresti

Digital Cinema Media (DCM) has partnered with global research company Millward Brown and marketing knowledge consultancy Benchmarketing to launch Building Box Office Brands: Volume II, the latest instalment in DCM’s effectiveness programme designed to prove the unique value and return on investment (ROI) of cinema in today’s cross-media landscape.

The publication incorporates new ROI insight from Benchmarketing, part of the Omnicom Media Group, who undertook a meta-analysis of its results vault. Drawing on the combined learnings of over 500 UK econometric models Benchmarketing have investigated the impact of cinema on overall campaign ROI.

Karen Stacey, CEO, Digital Cinema Media, said: “We know that for many advertisers the ultimate measure of success is whether the campaign is able to deliver ROI. The last cinema industry ROI study was released in 2012 and given the level of change across the media industry since then we were keen to understand cinema’s impact on campaign ROI in today’s landscape. While understanding the effectiveness of individual channels is important, we are also aware that advertisers want to understand how to make their media mix more effective. With this in mind we asked Benchmarketing to investigate whether increasing cinema’s share of the campaign budget could optimise the whole campaign, creating a more effective mix and deliver stronger ROI.’

The new analysis focuses on five core categories – Retail, Food FMCG, Telecoms, Travel & Transport and All Services. For each sector, Benchmarketing investigated the relationship between cinema’s share of investment and the overall Revenue ROI delivered by the total media campaign.

Findings reveal that advertisers in many of these sectors are currently underinvesting in cinema. By growing the share that cinema takes these advertisers could optimise their whole ad campaigns and see an increase in the returns delivered at an overall level.

The key takeaways from the research include:

Travel brands should look to increase cinema’s share of the budget to 11%, from their current average share of 4.9%. At the higher share, brands could see a Revenue ROI (at total campaign level) of £2.70 for every £1 - compared to £1.10 when cinema takes a smaller share of the campaign budget.
The optimal share that Food FMCG advertisers should invest into cinema is 6.8% - compared to the current average share of 2.8%. Investing at this higher level would drive optimal returns from the overall ad campaign, delivering £0.50 for every £1 invested.
Telecoms brands should increase their share of investment from 1.8% to 3%, which could deliver a return of £2.90 for every £1 spent.
Retail advertisers who are cinema spenders on average are investing at the optimal levels (2.6% share) for driving the strongest campaign ROI.
All Services brands (includes Charity, Entertainment & Leisure, Finance, Retail, Telecoms, Travel) should increase their share of investment in cinema from 1.5% to 2.7% in order to drive the optimal campaign ROI of £3.70 for every £1 spent.

This new ROI analysis is part of DCM’s wider effectiveness programme and forms part of DCM’s latest release, Building Box Office Brands: Volume II, which aims to prove the unique value and ROI of cinema in today’s cross-media landscape. In addition to the ROI insight, DCM has once again partnered with Millward Brown and its databank of 228 European CrossMedia studies, to prove how cinema can play an integral role in helping to build brands. Results of this analysis reveal how cinema contributes unbeatable impact ‘per person reached’ for advertisers on core brand-building metrics such as Salience, Love, Difference and Consideration.

Karen Stacey added: “As Les Binet and Peter Field so brilliantly highlighted at the IPA’s Effectiveness Week, brands need to invest in paid media and create great emotive copy if they want to achieve fame, cultural relevance and ultimately growth. At DCM, we believe that cinema can play an integral role in helping brands achieve this alongside TV. By providing advertisers with the chance to add incremental cover amongst desirable, upmarket audiences and giving brand’s great creative work the showcase it so rightly deserves, cinema can help build brands as part of an effective multi-media campaign that ultimately stimulates brand growth”.

Read and download the full report here.