Advertising is best at the cinema
Even before moviegoers get to the cinema there are opportunities for advertisers to be seen through websites and apps. Once at the cinema, visitors encounter things such as posters and film magazines. There are also excellent opportunities for advertisers that want to physically meet consumers to arrange events in the cinemas. Visitors come to the cinema voluntarily, are excited about the experience, and so are susceptible to experiences during their visit.
The advertising culminates, of course, in the ads shown right before the film. The general effect the advertising has on the recipient and its impact depends on these factors: ad space, time, and free choice. Cinema as a medium has an unbeatable advertising space and the consumer’s designated, dedicated time. This makes advertising in cinemas an unusually effective form of advertising.
After the film, there are opportunities to communicate with visitors through the Bioklubben loyalty program (in Sweden) and its 700,000 active members. However, this is used to a limited extent and there is great potential in utilizing it more.
Take advantage of the Group’s combined strengths
In 2014, NCG’s media sales in Sweden, Norway, and Finland were grouped into a line of business within the Nordic Cinema Group. In the Baltic states, the media business is still partially outsourced and the market is relatively immature. In Sweden and Finland NCG Media manages all sales of cinema advertising, even for other cinema players. Even though it is a significant part of the business, there is potential for growth: NCG Media currently accounts for 0.4 percent of media investments (bought distribution) in Sweden and 0.2 percent in Finland. NCG Media, through CAPA Kinoreklame, is a minor player in Norway in keen competition with Egmont.
During the year, synergies created within NCG Media occurred in three areas:
- Sales: Identify and reuse best practices in sales, finding clients that can be managed jointly.
- Market and research: All material produced for customers is adapted for use in all markets. Research on customers, cinema preferences etc. is done jointly.
- Technology: Previously, there was one technical platform per market, but we now use a common platform.