Optimal Advertising Strategy Across Multiple Channel For Film Distributions

Sreevathsan Sridhar, Indian School of Business
Subodha Kumar, Temple University

Description

Cinema circuits (such as AMC) are beginning to exploit social media footprints, in addition to traditional advertising channels, to market movies to the consumers. We study the advertising strategy of cinema circuits by optimizing and analyzing the allocation of funds between two different advertising channels by theatres. We analyze how an increase in advertising effectiveness because of targeted advertising affects ticket prices, the window of exclusive exhibition for theatres and the revenue sharing model between theatres and studios. A significant growth in the use of social media to target customers for advertising and the integration of social media profiles with the value chain of almost all consumer good industries makes our findings relevant not just in academia but also in the industry. Our analysis provides critical insights to both theatres and studios by helping them decide the best strategy to allocate funds to advertising and to select the optimal time window for sequential release.

 

Optimal Advertising Strategy Across Multiple Channel For Film Distributions

Cinema circuits (such as AMC) are beginning to exploit social media footprints, in addition to traditional advertising channels, to market movies to the consumers. We study the advertising strategy of cinema circuits by optimizing and analyzing the allocation of funds between two different advertising channels by theatres. We analyze how an increase in advertising effectiveness because of targeted advertising affects ticket prices, the window of exclusive exhibition for theatres and the revenue sharing model between theatres and studios. A significant growth in the use of social media to target customers for advertising and the integration of social media profiles with the value chain of almost all consumer good industries makes our findings relevant not just in academia but also in the industry. Our analysis provides critical insights to both theatres and studios by helping them decide the best strategy to allocate funds to advertising and to select the optimal time window for sequential release.