Cinema Is Key in Delivering The Hard To Reach Millennials Q2 2018
Cinema Delivers over 93 Million Impressions Monthly People 2+: 107,467,572 P 18-34: 50,941,865 P 18-49: 75,210,844 P 25-54: 58,287,795 Source: Nielsen Cinema Audience Report, Q2 2018; based on attendance 2
Of Which Nearly Half Are Millennials Cinema Audience Composition 47% 53% P18-34 Rest of Population Source: Nielsen Cinema Audience Report, Q2 2018; based on attendance 3
Millennials Account For Over Half of R Rated Movies Cinema Audience Comp By Rating PG PG-13 R 39% 29% 47% 32% 56% 32% 10% 17% 8% 7% 4% 5% P2-11 P12-17 P18-34 P35-64 P2-11 P12-17 P18-34 P35-64 P2-11 P12-17 P18-34 P35-64 Source: Nielsen Cinema Audience Report, Q2 201; out of base of P2-64, Sums may not equal 100% due to rounding 4
Avengers: Infinity War Obliterates Records in Q2 The latest installment in the Avengers universe drew a huge audience and broke records. Biggest Opening Weekend Ever Biggest April Release Biggest Superhero Movie Release Biggest Non-Summer Release Biggest PG-13 Movie Release And many more records 5
Cinema Even Comprises A Greater Portion Of Millennials Than The Internet P18-34 Audience Composition Cinema vs. Total Internet 47% 28% Cinema Total Internet Source: Nielsen Cinema Audience Report, Q2 2018 for cinema audience composition. comscore June 2018, mediametrix multiplatform for Total Internet based on unique visitors. Composition for both cinema and digital based on P2+. 6
Who Are the Movie-goers?
Movie-Goers Tend to Be More Educated, More Have Bachelor s/post-grad Degrees P18-34 Composition P18-49 Composition P25-54 Composition 9% 7% 13% 10% 16% 12% 22% 9% 22% 19% 10% 26% 28% 27% 11% 24% 21% 10% 21% 27% 31% 12% 20% 23% 11% 17% 26% 18% 6% 11% 18% 5% 11% 16% 3% 11% Movie Goers General Population Movie Goers General Population Movie Goers General Population Source: Movie-Goers: Nielsen Cinema Audience Report, Q2 2018 comps; Gen Pop: P18+: GFK MRI Doublebase 2017; Sums may not equal 100% due to rounding 8
And More Affluent; Over Half of Movie-Goers Have a HHI of Over $50k Movie-Goers 18-34 Movie-Goers 18-49 Movie-Goers 25-54 27% 26% 21% 54% 19% 55% 19% 60% 19% Under $30,000 $30,000-50,000 $50,000+ Under $30,000 $30,000-50,000 $50,000+ Under $30,000 $30,000-50,000 $50,000+ Source: Nielsen Cinema Audience Report Q2 2018 comps; Sums may not equal 100% due to rounding 9
They Are Trendsetters And Influencers People Often Come To Me For Advice Before Making A Purchase Heavy Consumers of Media ( Index Against P18+) I Am Influenced By What's Hot And What's Not Heavy Consumers of Media ( Index Against P18+) 121 109 103 103 102 99 120 107 103 101 100 95 Source: GFK MRI Doublebase Survey 2017; Selection of Heavy Media Consumers (Quintiles I & II); Movie Theater Heavy Movie Viewing Rating [saw enough movies to be in top ~15%]) 10
Movie-goers Are Spenders, More Likely To Make Impulse Purchases 113 I Tend To Make Impulse Purchases Heavy Consumers of Media ( Index Against P18+) 111 I'm A Spender Rather Than A Saver Heavy Consumers of Media ( Index Against P18+) 109 104 103 100 98 97 104 103 101 98 Movie Radio Magazine Internet Outdoor Newspaper Movie Internet Radio Magazine Outdoor Newspaper Source: GFK MRI Doublebase Survey 2017; Selection of Heavy Media Consumers (Quintiles I & II); Movie Theater Heavy Movie Viewing Rating [saw enough movies to be in top ~15%]) 11
And Are More Likely To Try New Products and Services 123 I'm Always One Of The First Of My Friends To Try New Products Or Services Heavy Consumers of Media ( Index Against P18+) 111 104 102 101 98 Movie Viewing Cumes-Genre Internet Radio Magazine Outdoor Newspaper Source: GFK MRI Doublebase Survey 2017; Selection of Heavy Media Consumers (Quintiles I & II); Movie Theater Heavy Movie Viewing Rating [saw enough movies to be in top ~15%]) 12
Reaching These Unique Consumers Is Possible By Adding Cinema In Your Marketing Mix Cinema has an addition 4.7M P18-34 unduplicated from Primetime TV Cinema s Unduplicated P18-34 Reach 4,717,000 TV Cinema Source: MediaImpact 6/1/17 6/25/17; TV = Cable + Broadcast Primetime; Cinema includes NCM & Screenvision; P18-34 13
How Do Movie Goers Compare To Internet Users 14
Heavy Cinema Consumers Are More Likely To Spend More On Products and Services Heavy Movie Theater Viewers vs P18+ ( Index Against P18+) Expenditure Heavy Cinema Index Men s Clothing: Big Ticket Item [$500+] 191 Men s Clothing: Small Ticket Item [$1,000+] 206 Women s Clothing: Big Ticket Item [500+] 168 Women s Clothing: Small Ticket [$500-999] 149 Expenditure Household Furnishing: Big Ticket Item [$1,000+] Household Furnishing: Sofa/Sectional [$1,000+] Heavy Cinema Index 129 139 Household Furnishing: Mattress [$1,000+] 129 Climate Control: Central Air [$400+] 114 Sports Clothing [$150+] 161 Athletic Shoes [$150+] 162 Shoes [$100+] 131 Domestic Vacations [$3,000+] 144 Foreign Vacations [$3,000+] 175 Luggage [$300+] 204 Cameras/Camcorders [$750+] 169 Television Sets [$3,000+] 146 Headphones [$100+] 162 Dry Cleaning [$100+] 155 Flower Shop [$100+] 176 Barber Shop [$100+] 138 Source: GFK MRI Doublebase Survey 2017; Total amount purchased in the last 12 months Heavy Internet = Internet Quintile I (Heavy), Heavy Cinema = Movies Attended in the Last 90 Days (Once a Month) 15
Compared To Heavy Internet Consumers, They Outspend Across A Myriad of Categories Heavy Movie Theater Viewers vs Heavy Internet Users ( Index Against P18+) Expenditure Heavy Cinema Index Heavy Internet Index Men s Clothing: Big Ticket Item [$500+] 191 100 Men s Clothing: Small Ticket Item [$1,000+] 206 124 Women s Clothing: Big Ticket Item [500+] 168 119 Women s Clothing: Small Ticket [$500-999] 149 117 Sports Clothing [$150+] 161 120 Athletic Shoes [$150+] 162 113 Shoes [$100+] 131 109 Cameras/Camcorders [$750+] 169 139 Television Sets [$3,000+] 146 108 Headphones [$100+] 162 130 Source: GFK MRI Doublebase Survey 2017; Total amount purchased in the last 12 months Heavy Internet = Internet Quintile I (Heavy), Heavy Cinema = Movies Attended in the Last 90 Days (Once a Month) 16
and They Over-index Across The Board Heavy Movie Theater Viewers vs Heavy Internet Users ( Index Against P18+) Expenditure Heavy Cinema Index Heavy Internet Index Household Furnishing: Big Ticket Item [$1,000+] 129 108 Household Furnishing: Sofa/Sectional [$1,000+] 139 116 Household Furnishing: Mattress [$1,000+] 129 94 Climate Control: Central Air [$400+] 114 89 Domestic Vacations [$3,000+] 144 91 Foreign Vacations [$3,000+] 175 100 Luggage [$300+] 204 101 Dry Cleaning [$100+] 155 104 Flower Shop [$100+] 176 102 Barber Shop [$100+] 138 114 Source: GFK MRI Doublebase Survey 2017; Total amount purchased in the last 12 months Heavy Internet = Internet Quintile I (Heavy), Heavy Cinema = Movies Attended in the Last 90 Days (Once a Month) 17
Overall, Movie-goers Consider Shopping As A Way To Relax More Than Internet Users I Think Shopping Is A Great Way To Relax Heavy Consumers of Media ( Index Against P18+) 114 105 103 102 100 96 Movie Internet Magazine Radio Newspaper Outdoor Source: GFK MRI Doublebase Survey 2017; Selection of Heavy Media Consumers (Quintiles I & II); Movie Theater Heavy Movie Viewing Rating [saw enough movies to be in top ~15%]) 18
and They Are Very Receptive to Advertising I Like to Look at Advertising Heavy Consumers of Media (Index Against P18+) 116 109 107 99 96 Movie Newspaper Magazine Radio Internet Source: GFK MRI Doublebase Survey 2017; Selection of Heavy Media Consumers (Quintiles I & II); Movie Theater Heavy Movie Viewing Rating [saw enough movies to be in top ~15%]) 19
A Look At Ad Expenditures 20
Advertisers Continue to Invest In Cinema With A Projected 3 Billion Next Year Cinema Advertising Expenditure $ (Billions) 2.18 2.26 2.3 2.34 2.42 2.67 2.69 2.86 2.98 3.15 3.34 2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020* Source: McKinsey; Wilkofsky Gruen Associates 21
Business Category Tops the List in Q2 Rank Industry Quarter 2 2018 ($$$) 1 BUSINESS & CONSUMER SVCS $32,944 2 AUTO.,AUTO.ACCESS & EQUIP $18,436 3 CONFECT., SNACKS & SOFT DRINKS $16,035 4 INSURANCE & REAL ESTATE $13,878 5 PUBLISHING & MEDIA $11,897 6 SPORTING GOODS, TOYS, & GAMES $5,858 7 ENTERTAINMENT & AMUSEMENTS $5,445 8 TRAVEL,HOTELS & RESORTS $5,357 9 TOILETRIES & COSMETICS $4,300 10 DRUGS & REMEDIES $4,225 11 BEER & WINE $4,208 12 APPAREL,FOOTWEAR, & ACCESSORIES $3,823 13 ELEC. ENTERTNMT. EQUIP. & SUPPL. $2,817 14 COMPUTERS, OFF. EQUIP. & STATIONERY $2,747 15 FOODS & FOOD PRODUCTS $2,449 Source: AdIntel, Cinema = National & Regional Cinema, Q2 2018 22
and Here Are The Rising Spenders Rank Parent Company Quarter 2 2018 ($$$) Quarter 2 2017 ($$$) YoY Change 1 MARS INC $14,383 $9,174 $5,209 2 HYUNDAI MOTOR CO $5,907 $2,076 $3,831 3 FACEBOOK INC $3,637 $0 $3,637 4 PFIZER INC $3,598 $0 $3,598 5 PROGRESSIVE CORP $4,561 $1,228 $3,333 6 TIME WARNER INC $5,542 $2,733 $2,810 7 DEUTSCHE TELEKOM AG $2,797 $0 $2,797 8 AT&T INC $8,332 $5,886 $2,446 9 MOLSON COORS BREWING CO $2,711 $287 $2,424 10 LEVI STRAUSS & CO $2,393 $0 $2,393 11 GENERAL MOTORS CO $9,830 $7,456 $2,374 12 RECRUIT HOLDINGS CO LTD $2,077 $0 $2,077 13 UNITED STATES GOVERNMENT $4,329 $2,378 $1,951 14 MARRIOTT INTL INC $1,853 $0 $1,853 15 MICROSOFT CORP $1,701 $0 $1,701 16 AMERICAN PETROLEUM INST $1,620 $0 $1,620 17 ALPHABET INC $2,967 $1,380 $1,587 18 GENERAL ELECTRIC CO $1,614 $198 $1,416 19 DENALI HOLDINGS INC $1,872 $524 $1,348 20 T&A TRANSPORTATION INC $1,192 $0 $1,192 21 NINTENDO CO LTD $2,730 $1,631 $1,099 22 FORD MOTOR CO $1,507 $411 $1,096 23 ATOM TICKETS LLC $1,073 $0 $1,073 24 ROCK VENTURES LLC $1,067 $0 $1,067 25 UNDER ARMOUR INC $988 $0 $988 Source: AdIntel, Cinema = National & Regional Cinema, Q2 2018 23
Top Spenders in Q2 2018 Rank Parent Company Quarter 1 2018 ($$$) 1 MARS INC $14,383 2 GENERAL MOTORS CO $9,830 3 AT&T INC $8,332 4 BERKSHIRE HATHAWAY INC $7,804 5 HYUNDAI MOTOR CO $5,907 6 TIME WARNER INC $5,542 7 PROGRESSIVE CORP $4,561 8 UNITED STATES GOVERNMENT $4,329 9 UNILEVER $4,087 10 WALT DISNEY CO $4,065 11 FACEBOOK INC $3,637 12 PFIZER INC $3,598 13 ALPHABET INC $2,967 14 DEUTSCHE TELEKOM AG $2,797 15 NINTENDO CO LTD $2,730 16 MOLSON COORS BREWING CO $2,711 17 LEVI STRAUSS & CO $2,393 18 SAMSUNG ELECTRONICS CO LTD $2,154 19 RECRUIT HOLDINGS CO LTD $2,077 20 YUM! BRANDS INC $1,978 21 HERSHEY CO $1,874 22 DENALI HOLDINGS INC $1,872 23 MARRIOTT INTL INC $1,853 24 AMAZON.COM INC $1,825 25 MICROSOFT CORP $1,701 Source: AdIntel, Cinema = National & Regional Cinema, Q2 2018 24
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