Market analysis: Fashion Industry in UK - Essay Example

Table of Contents Cinema Advertising in the UK: Status and Trends 2. Cinema Advertising as a Media Choice 3 3. Conclusion and Recommendations 5 Bibliography 7 1 Cinema Advertising in the UK: Status and Trends The cinema industry has been a tremendous contributor to the UK's economy. There were 171 million visits to UK cinemas in 2004, 2.4 percent more than in 2003 and the second highest number for over 30 years (UK Film Council, 2005). The cinema industry is a large, overtly profitable and a flourishing business in UK. Over the years, advertisers have been using this medium to reach the wide and an ever-increasing consumer base. This huge base has tremendously supported the wide array of advertising needs in the economy. The UK cinema industry has shown consistent growth, in both audience admissions and revenue. Figures for 2001 state that advertising spends increased from 141.97 million in 2000 to 170.83 million at the end of 2001 (www.mediaweek.co.uk). The figures also suggest that the top 10 media agencies are spending more than they previously used to. On an average, media agencies are spending 2.6% of their total advertising budgets on cinema advertising. Cinema is one of the most flexible forms of media. Over the years, analysts have predicted its huge decline and even death. These views were fuelled by the emergence of various innovative new technologies. These new technologies promised substantial cost-reduction, wider appeal and enhanced efficiency and effectiveness. Television, video, cable and digital film channels and most recently DVD have all challenged the traditional medium of cinema advertising. These new media, with all their seemingly better advertising features, posed considerable challenges to cinema advertising to the extent that analysts began to ponder over its survival in the market. Nevertheless, cinema advertising managed its survival and even recorded incessant growth. Both the advertising and the ticket revenue figures continued to rise steadily. It is continuing to rise on an even larger scale. This is not something that has been achieved with a complacent attitude and a wait-and watch approach. The industry has achieved its growth through considerable revision of its strategies. Focus is being given to the UK cinema's expanding age demographic. Advertisers and media planners have recognised the strength of this aspect of the UK cinema advertising and placed several stakes on it. Those who invested in the medium have recorded considerable success. Automotive is now the top product category in UK cinema advertising with incessant rises in advertisement spending over the previous years. This is followed by drink and food industries (www.mediaweek.co.uk). There is an increasing tendency of firms to advertise via this medium. Clients like Barcardi, Smirnoff, Nestle, BT Cellnet and Channel 4 television have, of late, come in a big way in cinema advertising. Cinema advertising is increasingly preferred by those companies and their agencies looking to spread advertising, away from the more traditional routes, to reach today's consumer. Cinema's audience is also widening. In 2003, the industry recorded 2.4 % increase in cinema audience over the previous years (Statistical Yearbook, 2005). Attending the cinema once a month or more: by age, GB Source: Cinema Advertising Association/Cinema and Video industry Audience Research Young people aged 15-24 years are the largest segment of cinema audience. Children in the age group of 7-14 years follow this. Meanwhile, an increasing tendency towards cinema audience is visible in all the age groups. The recent troubles facing television have provided a potential weak spot for some of television programmes to exploit as cinema's grasp on the 15 to 34-year-old market has gone from strength to strength. 2. Cinema Advertising as a Media Choice What is interesting about this medium is that after decades of decline, it has experienced a huge resurgence. Cinema in the UK has been suffering from an identity crisis for a long time, which has led to its having a less than favourable position on advertiser's schedules. This can be attributed to the high cost associated with it and the general understanding of its low effectiveness. However, it offered opportunities none of the other medium had been able to. Advertisers and media buyers have historically assigned UK Cinema to the back row. But it's time for the industry to wake up to what the medium can offer. Cinema advertising offer advertisers to present their message to a captive and receptive audience in a personal or family oriented environment. Cinema has access to huge numbers of potential and existing consumers. Advertisers benefit from the all-involving environment that cinema delivers. The automobile and food and beverages companies are aware of this and have taken full advantage of the opportunity. Others are following suit. The audio and visual capabilities of the Cinema environment deliver the greatest impact available to advertisers. Commercials look better when seen on the big screen. Cinema offers complete control over the audience that is being targeted. Some may call cinema advertising intrusive but they cannot deny the fact that it is highly effective. The recall rate of cinema advertising is far higher than that of television. Cinema's captive audience is more engaged in the advertising message. This means they will understand and recall more details about your commercial for far longer than those who see it on television. Many advertisers agree that cinema is a perfect medium for brand promotion. Through it stand out attributes, it creates grater impact and allows advertisers to establish brand status very quickly with an audience. Cinema advertising creates brand loyalty because it communicates to the audience in a discreet way. Finally, as Cinema's audience profile has broadened it is now possible to reach a wide variety of target audiences from 7-11 years to more than 45 years via alternative buying options. Cinema advertising is flexible enough to be available by site, town, city, as well as region. 3. Conclusion and Recommendations With increasing boom in the film business, flourishing market and incessant increase in consumer base, cinema advertising is coming up in a big way. Forecasts for 2002 predict cinema will access 84 million 15 to 34 year-olds, compared to 58 million in 1990 (www.mediaweek.co.uk). This prediction is going to take the cinema advertising a long way. While the present market niche has been noteworthy, the cinema advertising would definitely play a big role in catering to the advertising needs in the economy. Nevertheless, while the optimism is overtly justified, caution needs to be taken to avoid the earlier mistakes and experiences associated with this medium. It is very clear that this medium is still overlooked by most of the advertisers and media planners. The substantial cost implications should also be noted. Finally, the effectiveness attributes of cinema advertising have still been questioned. Cinema advertising must address these issues if it is to come still further in the world of fast track mass marketing. Continuous improvement in its presentation of advertisements is one area that can be definitely improved. Meanwhile, the timings and quantity of display may also be reviewed. All the while, it should be noted that minimal intrusion to the cinema viewing process is made. An advertiser, who is designing a media mix, must be aware of these limitations while valuing the immense potential of this medium. In the first place, marketing strategy must be carefully crafted based on the attributes of the product to be sold and the advertising requirements. Cinema advertising is particularly effective when the advertisers require stand out and highly receptive audience in a close/personal setting. It is also effective when recall impact is desired. While the medium caters to practically all kinds of advertising needs, its impact on generating local demand is tremendous. The huge and ever growing cinema admission should be optimally utilised. Cinema advertising is coming of age. This is a time when there are so many options available in advertising - huge choice of media of different reach, swiftness, appeal and effectiveness. Nevertheless, when it comes to achieving the greatest impact and attentiveness, nothing can compete the cinema auditorium. Bibliography Cunningham et al (1987) Marketing: A Managerial Approach; 2nd edition. South-Western Statistical Yearbook, 2004-05 White, R (1988) Advertising: What it is and how to do it; 2nd edition. McGraw Hill book Company Wright et al (1982) Advertising; 5th edition. McGraw-Hill Book Company www.researchandmarkets.com www.mediaweek.co.uk Read More