Most sectors should spend more on cinema advertising for better ROI, research suggests

Brands in almost all major consumer sectors would see better return on investment across whole campaigns by putting a higher share of their budget into cinema ads, a new report claims.

Most sectors should spend more on cinema advertising for better ROI, research suggests

Building Box Office Brands: Volume II, from Digital Cinema Media, Millward Brown and Benchmarketing, uses a meta-analysis of Benchmarketing’s results vaults to investigate the impact cinema has on overall campaign ROI.

It found that of the sectors examined, travel/transport and food FMCG brands were likely to be underinvesting the most in cinema ads.

Travel brands currently spend an average of 4.9% of their budgets on cinema, but according to the research, the optimal share would be more than twice as high, at 11%. At this level, brands would see an ROI of £2.70 per £1, compared to just £1.10 at the current rate.

The report found that food brands, which spend only 2.8% of their budgets on cinema, should increase this to 6.8% – almost two and a half times higher.

Telecoms brands, meanwhile, should up their cinema spend from 1.8% to 3% of their budgets, while all services combined – including charity, entertainment and leisure, finance, retail, telecoms, and travel – should increase it from 1.5% to 2.7%.

Only retail brands, which put an average of 2.6% of their budgets into cinema, are achieving the optimal rate, according to the study.

Karen Stacey, chief executive of 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.

"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."

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