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This topic comprises 2 pages: 1 2
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Author
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Topic: What to charge for advertising
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Mike Blakesley
Film God
Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 04-12-2015 11:52 AM
I think it's just what the market will bear combined with how you present it, taking into consideration the value of theatrical advertising.
If you're getting, say, 200 people per week and you charge $1000 a year to run an ad, that's only a little over 9 cents per "impression." Impressions are what makes an ad successful -- repeated impressions translates into name recognition and brand awareness, which translates into sales.
Plus, impressions from a theatrical ad are way better than a newspaper ad because the audience is looking at the screen (they can't turn the page) and the message is repeated every time they go to the movies.
If the guy was to spend $1000 on an ad in the big daily newspaper, he'd probably get an ad about half a page in size, but it would only run ONE time. And if the paper has 20,000 or 200,000 subscribers, the salesperon might say "Look how many impressions you're getting!" But many (or most) of those readers would be likely to either miss seeing the ad altogether or just skim over it or whatever. So a newspaper impression isn't near as valuable as a theatrical one.
If you are going to run this guy's ad and no others, then the value skyrockets for obvious reasons.
One other thought -- you might consider asking the food truck owner to give you a shorter ad. One minute is too long for a theatrical ad, in my opinion. Even 30 seconds is stretching it although if you're only showing the one ad, it might be OK. Just my personal 2¢ on that.
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Justin Hamaker
Film God
Posts: 2253
From: Lakeport, CA USA
Registered: Jan 2004
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posted 04-12-2015 02:49 PM
I would say something along the lines of $150 per month. And offer a discount for a long term contract paid in advance. Something like $1500 for a year paid in advance. This saves you the hassle of month to month billing, plus it gives you a larger chunk of money up front.
If you go much higher than that, you will have a difficult time attracting the smaller businesses - such as a food truck.
For the sake of convenience, I would highly recommend converting that MP4 to a DCP, that way you can just schedule it in your play list. As an MP4, you're probably going to have to play it with a secondary media player, then switch back to the DCinema server for the feature. If you were running a slide show of stills, this would probably be just fine, because you could set the media player to repeat on a loop and not be concerned with where the ads first hit the screen. But since you'll want the ad to start from the beginning each time, you would have to actually have someone in the booth ready to play the ad, then switch.
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Scott Norwood
Film God
Posts: 8146
From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99
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posted 04-12-2015 05:22 PM
In the US, the ratings system is voluntary and has no force of law. Theatres are free to play unrated material if they want. The MPAA will rate trailers, but, to my knowledge, they do not provide ratings for commercials. They do charge for the ratings service and it is not cheap. Thus, many low-budget films are distributed without ratings.
As a practical matter, most theatrical commercials are just television commercials that have been converted to 35mm or DCP format, so they generally meet the content requirements for broadcast (no "bad" language, no nudity, no excessive violence). I have never seen or heard of a theatrical commercial that was not appropriate for the movie that it preceeded, although the advertisers will occasionally request that their commercials not be shown with certain films (one that comes to mind is a Marines commercial that was not to be shown with Jarhead; I am sure that there are more recent examples, too).
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Marcel Birgelen
Film God
Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012
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posted 04-12-2015 05:25 PM
quote: Leo Enticknap
Therefore I wonder how long it'll be before middle-man agencies spring up to broker local theater advertising onto screens (negotiating with both independents and the home offices of chains, if necessary), pitching a service whereby Christopher doesn't have to do the sort of negotiating he describes - he simply refers the food truck to the agency he's signed on with, and then some time later the DCP and a check arrive at his theater. Maybe such agencies already exist.
Around here, this happened already before the arrival of the DCP. A small advertising firm signed up a bunch of theaters and put a video projector on a DVD in front of the main show. Nowadays they deliver their localized content in DCP form.
quote: Carsten Kurz
BTW - does anyone know wether these 'local' ads have to be rated in order to be played? Because in germany we are not allowed to play unrated ads in front of any rated movie. How much will the rating cost in the US, is there a special price for local ads? Because here in germany there is a special lower rating fee for local advertising, around 80US$ per clip.
Yeah, German rating systems, who ever came up with that? I love those censored edits on public TV... Green goo instead of blood in computer games. ![[Wink]](wink.gif)
In the U.S. there is no mandatory rating system, and AFAIK only Tennessee has a law that actually refers to MPAA ratings.
Even in the Netherlands, where there is a somewhat mandatory rating system, advertisements are not required to be rated before shown to the public.
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Leo Enticknap
Film God
Posts: 7474
From: Loma Linda, CA
Registered: Jul 2000
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posted 04-13-2015 12:58 PM
quote: Justin Hamaker
For the sake of convenience, I would highly recommend converting that MP4 to a DCP, that way you can just schedule it in your play list.
Amen to that. Christopher: there are various DCP creation tools for desktop computers available, many of which are freeware and several of which would take care of converting ProRes or H.264 files to DCP for playlist integration quickly and easily. I've used DCP-o-Matic and OpenDCP: both work very well.
quote: Carsten Kurz
BTW - does anyone know wether these 'local' ads have to be rated in order to be played?
The US has already been covered. In Britain, the censorship framework for theatres is essentially the same one as was created by the Cinematograph Act 1909. Movie theaters (cinemas) have to have a license from the town or city council in order legally to take money from the public in exchange for showing them movies. The local authorities essentially subcontract censorship to the British Board of Film Classification, which is a private business that filmmakers pay to rate their movies. The cinema's license typically says that anything shown must have a BBFC rating (and age admittances in compliance with it, e.g. no letting 12-year olds into a 15-rated film) unless it has been approved separately or age-rated differently by the local authority. This arrangement is why you still occasionally read stories about some tiny village in the wilds of North Wales lifting the ban on The Life of Brian that was imposed in 1979 because of objections from the church.
At the first cinema where I worked, the local authority had a standing policy that ads for local businesses (which had to be locally owned - the Wimbledon branch of McDonald's didn't count!) had a standing exemption, and we could just show them with anything. This did cause a controversy once, when a nightclub put an ad on that included stock footage of scantily-clad women dancing, and parents who took their kids to see Santa Claus: The Movie complained to the council.
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Dave Young
Film Handler
Posts: 19
From: New Bedford, ma
Registered: Jul 2014
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posted 04-13-2015 07:48 PM
In terms of how much money to charge, there are some "standard" advertising rates for cinema. I've seen all kinds of breakdown, but surprisingly, local ads can often command a higher price than national ads. They're just harder to track down and require sales efforts. We're working on a solution to make this easier for theaters.
In the meantime, here are some guidelines. National cinema advertising is starting to fall down to television rates. In online advertising (web, desktop stuff) we use the term CPM to represent the cost per thousand impressions. You can expect to earn from $30 to $50 CPM for national ads, and up to $65 for local. How does it break down?
The national average is 19.6 people per audience, round it up to 20. So on average, every time that ad gets shown, it gets shown to 20 people. Using that logic, it takes around 50 shows to hit 1000 views of the ad and earn $65. Then again, if the ad shows early in the preshow, less people tend to see it. And of course on the weekends, more like 150 people can see it per view. So the average works out.
Theaters average 4.5 shows per day, so those views add up quickly. That in a nutshell is how to convert your ad value to a CPM number. Your situation is very different in that your real estate is probably more valuable than most, due to scarcity! You can probably charge anything you want for it, ie what the market will bear as was said above.
Many theaters run packages for weeks or months with a discount for a longer lock-in. The later in the preshow the ad shows, the more valuable it is. Cinematic video is arguably the most premium form of captive audience advertising out there, so don't sell it cheap ![[Smile]](smile.gif)
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even though I had one corrupt series of slides crash the server...NOW I screen test EVERY update and trust nothing as I lost 2 days of hunting as to WHY with that one.
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