Week 3: Communication Channels in Entertainment Marketing

Week 3: Paid and Owned Communication Channels in Entertainment Marketing

• This chapter focuses on communication strategies in entertainment marketing, highlighting the importance of paid and owned channels to build awareness, drive engagement, and ultimately, increase success.
• The chapter discusses challenges in controlling these channels and their effectiveness across various audiences and contexts.

Key Insights: The Three Communication Categories

• Paid Channels: Traditional advertising methods like TV commercials, print ads, and online banners; highly controllable but require significant investment.
  • Examples: Super Bowl ads for blockbuster films.
• Owned Channels: Media channels controlled directly by the producer, including websites, trailers, and social media accounts.
  • Examples: A movie's official YouTube channel hosting trailers and behind-the-scenes content.
• Earned Channels: Communication generated by consumers and external actors, such as word-of-mouth, reviews, and awards; less controllable but highly influential.

Paid Communication

• Effectiveness of Advertising: Paid advertising is a significant driver of awareness, but its effectiveness is most impactful when timed correctly. For films, most advertising is focused in the pre-release period.
• Role of Trailers: Trailers combine product-based marketing with product sampling. Well-designed trailers highlight key aspects and balance spectacle with realism.
• Key Metrics for Paid Media: Advertising elasticity for pre-release campaigns can be high, meaning that increases in ad spending can correlate with increases in box office revenue.

Owned Communication

• Role of Social Media: Owned media tools such as YouTube and Instagram are crucial for younger audiences, due to engagement and viral effects.
• Trailers and Posters: Trailers can act as standalone products when focused on creating anticipation for viewers. Posters, despite lack of dynamism, can offer a significant impact through the use of endorsements.

Consumer Behavior and Awareness Sources

• People across different age groups use different communication channels.
  • Younger audiences prefer digital and owned channels, like trailers on YouTube.
  • Older audiences rely more on traditional media, like TV and print ads.
• Word-of-mouth is highly influential for all demographics, emphasizing the interplay between earned and paid/owned media.

The Pinball Effect of Owned Media in Digital Marketing

• Owned media operates dynamically, with producers launching content and consumers engaging in unpredictable ways.
  • Example: Trailers on YouTube can lead to discussions, memes, and further sharing, organically amplifying reach.
• This dynamic interaction is similar to a pinball game; producers influence initial trajectory, but audience interaction determines the final impact.

The Evolution of Trailers and The Role of Posters

• Trailers have evolved from in-theater previews to standalone digital products.
  • Trailers often now act as "teasers" to build anticipation.
  • Hybrid trailers combine product sampling with promotional content and hidden messages for increased appeal and engagement.
• Posters are integral tools to create awareness, especially in physical and traditional spaces.

The Spoiler Effect

• Spoilers can either enhance or detract from consumer experience, dependent on how much information is revealed.
  • Anticipatory route: Spoilers reduce uncertainty and build anticipation but, if overdone, dampent curiosity.
  • Evaluative route: Spoilers make it easier for consumers to process complex plots, increasing enjoyment.
• Producers must carefully make decisions on how much information to reveal to maximize interest without negatively impacting emotional impact.

Differences in Media Effectiveness

• The effectiveness of communication channels varies depending on the medium.
  • Trailers are highly effective when well-crafted and include a compelling narrative element.
  • Super Bowl ads are effective for blockbusters but have diminishing returns after the initial spot.
  • Posters effectively highlight praise from critics, especially from top critics.

Chapter 12 Summary: Earned Communication Channels in Entertainment Marketing

• This chapter focuses on earned communication channels (e.g., word of mouth, buzz, chart rankings, and critic reviews).
• These channels are uncontrollable but influential, emerging from consumer or critic reactions, social interactions, and recommendation engines.

Key Insights: Characteristics of Earned Media and Types of Word of Mouth

• Earned Media: Includes discussions, chart rankings, and critic reviews. Consumers have some control over it since it is consumer-driven.
• Informed Cascades: WOM spreads based on actual experience, leading to quality-driven adoption patterns.
• Uninformed Cascades: WOM that is chatter/buzz before consumer product consumption (e.g., social media hype before a movie).

Drivers of WOM

• Six motivations drive consumer WOM:
  • Impression Management: Demonstrating expertise or taste.
  • Emotion Regulation: Venting emotions, especially after negative experiences, to help control emotions.
  • Concern for others: Helping others avoid bad experiences or discover good ones.
  • Social Bonding: Using entertainment discussions.
  • Information Acquisition: Seeking or providing knowledge.
  • Persuasion: Convincing others to engage with or avoid a product.

Role of WOM in Product Success

• High valence WOM boosts sales across various entertainment products.
• Negative WOM can be damaging, especially in early stages (e.g., opening weekends).
• Niche products rely more on WOM than blockbusters.
• Films and TV shows benefit more from WOM than music.

Variations of WOM in the Digital Age

• Traditional WOM: Face-to-face communication.
• Electronic WOM (EWOM): Real-time communication (e.g., Twitter and Facebook).

Pre-Release and Post-Release Buzz and Critic Reviews

• Pre-release buzz builds anticipation, using speculation and promotion.
• Post-release buzz reflects consumer experiences and can drive long-term success or failure.
• Critic reviews from professionals (e.g., Rotten Tomatoes) influence perceptions, and awards like Oscars can increase revenue.

Key Terms

• Pinball Effect: The unpredictable trajectory of owned media.
• Earn Media: Unpaid communication.
• Word of Mouth: Consumer-driven communication.
• Valence: The positivity or negativity of WOM or reviews.
• Informed Cascades: Adoption patterns.
• Unformed Cascades: Decisions influenced by popularity or speculative buzz.

Chapter 13 Summary: Entertainment Distribution Decisions

• This chapter examines how distribution strategies impact entertainment products.
• It discusses various distribution aspects, including timing, multi-channel distribution, piracy, and competition.

Key Insights: Role of Distribution in Entertainment

• Gatekeeping Function: Distribution mechanisms determine which products gain access to the market, influencing their success.
• Timing Decisions:
  • Long-term timing influences market readiness, technology, and cultural trends.
  • Mid-term timing considers seasonality, and short-term considers daily/weekly releases.
  • Competitive timing minimizes competition.
• Multi-channel Distribution: Entertainment products are often released sequentially to maximize revenue.
• Piracy and Its Effects: Piracy reduces revenue, but sampling effects may also offer limited constructive gains. Strategies to combat piracy include technological restrictions, legal action, and awareness campaigns.

Additional Insights and Key Terms for Distribution Decisions

• Cannibalization versus Sampling: Piracy can have both destructive and constructive effects. Sampling from piracy can help raise awareness, while cannibalization can reduce total revenue.
• Distribution Elasticity: Measures revenue responsiveness to distribution intensity.
• Windowing: A phased distribution strategy to maximize revenue by delaying availability across channels.