What gets moviegoers into the theaters?

Results from a study of moviegoers by Google Inc. and research firm MarketCast show that television advertising, trailers and word-of-mouth are the most important sources of first awareness of a movie. The study, The Internet and Moviegoing: A Benchmark Study on Influences and Opportunities, is based on a survey of approximately 2,100 moviegoers ages 13 to 49 via telephone and the Internet.
The survey was undertaken to test two main hypotheses:

1. The Internet - as a medium for content, advertising, community and commerce - wields substantial influence in the decision-making process of moviegoers.

2. The Internet’s influence looms large compared to the resources applied to it as a marketing medium for entertainment companies.
The study found that, in between first awareness and the point of sale - during the critical period in which consumers learn more about movies, winnow their choices and look up showtimes and theater locations - the Internet’s influence is vast.

MarketCast found that 49 percent of moviegoers surveyed actively research a movie after first hearing about it. Of these, seven in 10 go to the Internet, typically using search engines like Google. MarketCast calls this influential segment Moviegoing Infoseekers and found they account for about a third of respondents. “These are activist consumers, for whom the decision to see a movie is not made in a snap,” says Henry Shapiro, vice president and general manager of MarketCast. “Trailers and TV ads aren’t enough for them. They want to know more, they want to make comparisons and do additional research. And they’re using the Internet to satisfy their information needs on a proactive basis.”

Importantly, when it comes to the movies, the Internet is not an exclusive province. All ages of men and women and people from every educational stratum and background were represented just about the same in the Infoseeker segment as they were in another segment dubbed Traditional Moviegoers.

Other findings include:

  • Just over half of the moviegoers surveyed (Infoseekers and Traditional combined) use the Internet to research movie schedules and theater locations, more than all other sources combined. Newspaper listings are second, at 18 percent, but only the older moviegoers (those 35 and older) were found to use newspaper listings with any great frequency (one in three of those over 35, compared to just 13 percent to 16 percent of the younger age groups).
  • Infoseekers are four times as likely to first find out about a movie via the Internet (16 percent compared to 4 percent) and are a third less likely to first find out about a movie via television (32 percent compared to 48 percent).
  • More than a third of Infoseekers say the Internet - search engines, general portals, entertainment Web sites, sites created by studios for specific movies, ticketing sites - is the most influential medium in their decision to see a movie, compared to just 7 percent of Traditional Moviegoers. Fewer than half of Infoseekers say that television is the most important medium, versus 70 percent of Traditional Moviegoers.

“We are not saying to cut your television budget and put all of your money into search and Internet advertising,” says Shapiro. “This is a benchmark study. This research, and the waves to follow, are meant to serve as a fact-based framework to help the studios set marketing strategy and allocate resources. This research shows that the Internet is hugely influential for many moviegoers, so it certainly bears monitoring and being informed.”

“Clearly consumers are using the Internet to guide them in moviegoing - helping find showtimes, locations and reviews,” says Motion Picture Association of America Inc. Chairman and CEO Dan Glickman. “In addition, there is a world of opportunity on the Internet not only for delivering movies but also promoting them and our studios are working to harness those opportunities and get more consumers to the movies.” For more information visit www.marketcastonline.com.

Prospective car buyers open to alternative-fueled vehicles

A Wall Street Journal Online/Harris Interactive Personal Finance Poll found that one-third (33 percent) of U.S. adults who plan to purchase or lease a new vehicle say they are most likely to seriously consider an alternative-fueled vehicle for their next purchase. Most (92 percent) of these adults are willing to pay more for it than a traditional, gasoline-powered version of the same vehicle. Top reasons for considering an alternative-fueled vehicle include concerns for the environment and the cost of fuel. The survey also explored how consumers plan to pay for their next new vehicle and what financial factors are most important to them when making their next new vehicle purchase.

Almost three in five (58 percent) adults plan on purchasing a new vehicle, and while 37 percent say they are most likely to seriously consider a traditional, gas-fueled vehicle, many say they will seriously consider a hybrid (25 percent), ethanol-fueled (7 percent) or diesel-fueled (2 percent) vehicle. Those most likely to consider alternative-fueled vehicles include: those who live in the West (38 percent); young adults age 18 to 34 (36 percent); college graduates (44 percent); and those with an income of $75,000 or more (40 percent).
Only 8 percent of adults who will likely consider an alternative-fueled vehicle say they would not be willing to pay a penny more for a vehicle that runs on an alternative fuel over a traditional, gasoline-powered version of the same vehicle. Among those who are willing to pay extra, the average amount willing to be paid is $9,258.

Some interesting differences emerge when examining the data by region, gender and income. On average, those in the South ($10,786 extra) are willing to pay more for an alternative-fueled vehicle than those in the West ($9,343 extra), Midwest ($8,648 extra) or Northeast ($7,418 extra). Women are willing to pay $11,274 more on average for a vehicle that runs on alternative fuel, compared to men, who are willing to pay $7,506 more on average.

On average, those with incomes of $50,000 to $74,999 are willing to pay more than those making less or more than them for an alternative-fueled vehicle ($10,376 extra for those making $50,000 to $74,999 compared to $7,484 extra for those making less than $35,000; $8,501 extra for those making $35,000 to $49,999; and $8,594 extra for those making $75,000 or more).

Among those who say they would seriously consider a vehicle that runs on alternative fuel, almost half (47 percent) say their main reason for doing this is because it is better for the environment. Another 45 percent say their main motive is because their fuel costs will be lower. Substantially fewer adults cite the fact that they can take advantage of the Federal Clean-Fuel Tax Deduction (3 percent) and that they will be able to drive in high-occupancy vehicle and carpool lanes (1 percent) as their most important reason.
Some interesting demographic differences exist: Those in the Northeast (54 percent) and Midwest (55 percent) are most likely to cite fuel costs as their main reason for considering a vehicle that runs on alternative fuel, while those in the West are most likely to cite environmental concerns (64 percent).

Women are almost twice as likely as men to cite environmental concerns as their main reason for consideration (62 percent and 34 percent, respectively), while over half (52 percent) of men cite fuel costs for their main reason compared to 36 percent of women.
A majority of adults (61 percent) who plan on purchasing a new vehicle most likely plan to acquire it through financing or leasing over several years. Those ages 55 and older are least likely (48 percent) to say they will finance or lease their next new vehicle. However, they are more apt than any other age group to say they would pay cash for the entire vehicle cost (34 percent). For those planning to finance or lease their next new vehicle, the most important financial factor for them is the annual percentage rate (30 percent), followed closely by the down-payment requirements (25 percent). Other important financial factors include the length of contract (13 percent), rebates or incentives offered at time of sale (11 percent), the lowest initial purchase price (10 percent), and the highest residual value or resale value (6 percent). For more information visit www.harrisinteractive.com.

Most online TV viewers seeking news

One out of every 10 online consumers watches television broadcasts online, according to findings from the Consumer Internet Barometer from The Conference Board and researcher TNS. Online viewers say personal convenience and avoiding commercials are the top reasons for watching TV broadcasts online. Only a small percentage of consumers claim that their traditional television viewing has decreased, while three out of every four online viewers report no change in their viewing habits.

Many consumers use the Internet for entertainment on a daily basis. Today, more than two-thirds of online consumers log on daily for entertainment purposes and an additional 16 percent log on for entertainment several times a week. One in 10 online consumers are watching TV broadcasts via the Internet, and about one-third of these households consist of multiple viewers.

“As we have learned through our ongoing research, those content providers who communicate the value, context and capabilities of online programming will be positioned to grab the greatest share of the growing market for online entertainment,” says Edye Twer, a TNS senior vice president specializing in the media and entertainment sector. “Additionally, this is representative of a larger trend toward, ‘anytime, anywhere’ viewing that includes the use of digital video recorders, video on demand and portable video players, such as the iPod.”

More than three out of five online TV viewers cite personal convenience as the major reason for watching TV broadcasts online. Another reason for viewing online is the ability to avoid commercials. Other reasons are portability and a preference for computer viewing.
Online viewers tend to watch news broadcasts more often than other types of broadcasts, with more than 62 percent logging on for news content. Close to 50 percent go online for entertainment viewing. Catching up on missed content, previews, sports and watching entire episodes of shows are also among the top draws cited by more than a quarter of viewers.

The most popular methods for viewing TV broadcasts online are streaming and free download, cited by 53 percent and 49 percent of viewers, respectively. Very few consumers are willing to pay per download or enroll in subscription services.

The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent. Data is weighted as well to reflect the latest U.S. household demographic information. For more information visit www.conference-board.org.

Consumers support - but are still wary of - corporate data-gathering

According to province-wide online studies of nearly 600 adult British Columbia and Alberta residents conducted by Ipsos Reid on behalf of Canada’s Marketing Research and Intelligence Association (MRIA), consumers are very knowledgeable and supportive of companies that conduct business intelligence (BI) activities and personally participate in a wide number of these activities. However, consumers are also very skeptical and suspicious about data mining and have significant concerns about invasion of personal privacy and the potential misuse of this information.

In today’s sophisticated marketplace, a sizeable proportion of consumers indicate they are either very or somewhat knowledgeable about business intelligence/knowledge management (44 percent), environmental scanning/secondary research (40 percent) or competitive intelligence (44 percent). The vast majority is knowledgeable about market research activities (84 percent); a small majority is knowledgeable of corporate data mining activities (52 percent). Only between 10 percent and 20 percent of consumers claim to be “not at all” knowledgeable about these activities. A similar survey Ipsos Reid did in 2005 showed that consumers are almost as knowledgeable about BI activities as business intelligence leaders at organizations who conduct these activities.

Consumers are also very supportive of businesses that conduct these types of activities, especially marketing research, which receives the strongest support (84 percent strongly or somewhat support organizations that do this), followed by support for environmental scanning (69 percent) and business intelligence overall (63 percent). A smaller group is supportive of competitive intelligence activities (45 percent).
The most skepticism is levied against data mining activities, as nearly one-half are either “somewhat” (27 percent) or “strongly” (21 percent) opposed to this and only 32 percent support companies that conduct this activity.

Consumers are willing participants in a wide range of business intelligence activities, and are quick to see the benefits of participation. The vast majority of consumers have at some time participated in a wide range of BI activities such as market research (98 percent), given out credit card numbers online (87 percent), given personal information for warranties (85 percent), willingly provided e-mail addresses to companies (80 percent), joined customer clubs to receive rewards/price discounts (79 percent), joined mailing lists (74 percent), signed up for frequent-purchase cards (74 percent), provided personal info to get free online content (53 percent) or paid a fee for customer club cards (52 percent).

Consumers recognize the wide range of benefits to doing these types of things, such as getting rewards for frequent shopping, getting price discounts, getting free information, having the ability to voice their opinions to companies, saving time, building personal relationships with the companies they shop with, and finally, allowing companies to tailor their offering to match buying patterns of the consumer.

Although consumers for the most part participate in BI activities willingly, they have a number of suggestions for where businesses could improve the way in which they conduct themselves in these areas. Consumers strongly believe that they will only give out information to companies they trust (88 percent) and admit that they are very concerned about personal identity theft (72 percent). They also believe that companies are asking for too much personal information (63 percent) and unnecessary information (64 percent). A slight majority believes that companies misuse the information that they collect (55 percent) and many believe companies don’t make good use of the information they do collect (45 percent). Those who are reluctant participants in these types of activities cite concerns about getting more junk mail/spam, the invasion of their personal privacy, the selling of personal information, identity theft and uncertainty over what companies are using that information for.

“Today’s consumer is highly sophisticated and understands the need for businesses to collect information from consumers and to conduct various business intelligence activities,” says Steve Mossop, president of Ipsos Reid’s Western Market Research practice. “However, businesses must do a better job in protecting consumer privacy and utilizing the information that is collected so they don’t damage the trust that consumers have.”

“Consumers play a vital role in business intelligence - much of the information that businesses utilize emanates from consumers. Their knowledge and support of business intelligence activities is very encouraging and serves to reinforce the direction our industry is taking,” says Gail Tibbo, chair of MRIA’s Business Intelligence Conference. “Still, we have a distance to go in educating consumers about the more sophisticated and technical uses of data. We must tailor consumer information to specific requirements and justify our data requests with solid, convincing consumer-centric explanations. We need their continuing cooperation and advocacy for a healthy business intelligence climate to reign.”

For the purpose of this study, BI is defined as a process for professionally gathering, processing, analyzing and disseminating decision-making information relevant to an organization. It can also be referred to as knowledge management. BI involves the collecting, filtering, analyzing and prioritizing data from various sources including: environmental scanning or secondary market research information (market data such as industry information on trends, technology, sales, production levels, inventories, viewership, readership information); primary market research (from survey-based research, focus groups, etc.); competitive intelligence (organized collection of information about your competition); and data mining (from customer records, databases and other internal sources). For more information visit www.mria-arim.ca.

Scarborough study gets the goods on gift cards

A study by New York-based Scarborough Research found that Harrisburg, Pa., and Chicago are the top local U.S. markets for gift-card purchasers. Fifty-seven percent of Harrisburg adults and 57 percent of Chicago adults have purchased a gift card in the past 12 months. This is 19 percent higher than the total percentage of U.S. adults who purchased a gift card during the past year.

Pre-paid gift cards can be purchased at a variety of venues from retail stores to restaurants, airlines to online stores, and are a hit among U.S. consumers. When analyzing the 75 markets measured by Scarborough, even the markets at the bottom of this list still have a high penetration for gift-card purchasers, showing overall popularity across the country. Forty-eight percent of adults nationally have purchased a gift card in the past year.

Who is purchasing gift cards? Fifty-five percent of U.S. adults who purchased a gift card in the past year are women. They are 13 percent more likely than all adults to be between the ages of 35-44 and 9 percent more likely to be married. Those who have purchased a gift card in the past 12 months are 23 percent more likely than all adults to have a household income of $100,000 or more. Forty-five percent of adults who purchased a gift card in the past 12 months have one or more children in the household under 17 years old. For more information visit www.scarborough.com.