Return on Investment

at the Cinema

Rasmus Andersen - Danske Reklame Film (DK) Brightfish Research Day, September 6th 2012

Even for the same budget cinema has the best ROI

Ohal/MEC, September 2011

Background and Method

Salesmodelling based on – Response data

(SuperGros, SuperBest, Spar, Kiwi)

– Trade activity – Media and communication – External factors

Media Mix of Haribo 2008-10

Haribo Claims Movie Universe

Newspaper – Movie section

cinema 39%

EB (Newspaper – Movie section)

2% kino.dk

1%

Print magazine:

kino 4%

outdoor 16%

tv 38%

4,7

3,1

2,8

39%

38%

16%

Biograf

TV

Outdoor

ROI Andel af Haribos mediainvestering

Return On Investment

Cinema

Spending share for Haribo

Average ROI: 4,1

Share of Haribo’s media investment

Allocating Budget from Cinema to TV Caused a 4% Decrease in Sales! 800K MOVED FROM CINEMA TO TV CREATE A LOWER ROI ON THE SAME BUDGET

Jan Apr Jul Oct

Dobbeltdækning TV Online Magasin Print Outdoor Biograf

Jan Apr Jul Oct

Dobbeltdækning TV Online Magasin Print Outdoor Biograf

Me

dia

mix

ROI fra investeringen: 5,3

Eff

. co

vera

ge

K

ey

fig

ure

s

Jan Apr Jul Oct Feb May Aug Mar Jun Sep Dec Nov

Jan Apr Jul Oct Feb May Aug Mar Jun Sep Dec Nov

ROI from the investment: 5,1

Allocation from cinema to TV create a lower ROI for HARIBO!

Estimeret mer-salg: DKK 38,5 mio. Estimated add. sales: DKK 37 mio.

Jan Apr Jul Oct Feb May Aug Mar Jun Sep Dec Nov

1

1

1

2

2

2

TV # # # # # # #

Online # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

Magasiner # # # # # # # # # #

Print # #

Outdoor # # # # # #

Biograf # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

TV: 33% kino.dk: 5%

kino: 3% EB (film): 1%

Outdoor: 24% Biograf: 34%

TV # # # # # # # # # # # # #

Online # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

Magasiner # # # # # # # # # #

Print # #

Outdoor # # # # # #

Biograf # # # # # # # # # # # # # # # # # # # # #

TV: 44% kino.dk: 5%

kino: 3% EB (film): 1%

Outdoor: 24% Biograf: 23%

Double coverage Magazine Cinema

Cinema:

Cinema

Magazine

Movie: 1%

> < REDUCE INCREASE

Conclusion for Haribo

The cinema supports the media plan Marketing Clinic, september 2011

Background and Method

The market:

• Coca-Cola is in a market with enormous price competition

• Media budgets have been declining due to competition

The focus:

• Return on Investment

• Decomposition of the sales

• Identifying the long-term effects of television and cinema advertising

• Models for optimizing the marketing of Coca-Cola

Decomposition of Sales

Base sales 83%

Promotion effects 12%

; 0

TV 3%

Cinema 2%

Cinema is the Best Despite Price Competition

2,0

1,1

0,4

1,2

Cinema TV Launchprint

Post print

The levels are satisfactory because of a sales structure where approx.

65% of sales is on special offer

ROI

CINEMA INCREASES SALES IN BOTH THE SHORT AND LONG TERM

Soft drink: Carlsberg Sport 2011

Source: BrandScience jan. 2011. The cinema campaign has largely remained at the same time with the big TV campaign.

Wasp Penguin Squirrel

The commercial has been abridged

The campaign is continuous in cinema

Cinema is the strongest medium to boost sales!

83

83

103

133

Radio

Internet

TV

Cinema

Indexing of ROI-Numbers

Comment

" Through this sales modeling, we have measured in recent years

the strong ability of cinema advertising to generate

increased sales for Carlsberg Sport.

In this sales modeling we also found that

cinema advertising contributed the most positive to the revenue for Carlsberg Sport during this period."

Rikke Grønlund Media Director, PHD

Denmark A/S

From the Media Agency

Comment

”It has been important for us to uncover the effect on sales of each specific medium in the media plan. We have seen this

very clearly in the actual sales modeling case.

It is very interesting to see, how the impact has been the last year and cinema has separated itself positively from the

other media with a higher ROI.

Cinema is a unique medium which not only contributes to the quality of exposure but can also increase sales on short

and long term. ”

Rasmus Bendtsen Brand Manager, Carlsberg

Danmark A/S

From the Advertiser

Conclusion

• Carlsberg Sport has particular chosen cinema because of the good audience segment match, the high quality of exposure and the ability to execute a continuous campaign strategy

• But Cinema has also been able to create sales

• Cinema delivers an excellent result as the medium that achieves the highest ROI: as much as 33% better than average

• Cinema is therefore the most cost effective media investment for Carlsberg Sport

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