Thursday + Gregory Huffstutter = The Ad Man Answers
Q: Pixar/Disney has this new movie, TOY STORY 3. Cue the tie-in. We see Woody and Buzz at McDonald's, at the post office, at the food store.
It seems a win-win situation. People see the characters on products unrelated to the actual movie and decide to make the purchase. People see the characters on products unrelated to the actual movie and remember to go see the movie.
Since everybody seems to win, in what direction does the advertising money flow?
I've always wondered about this. :)
Stephen
http://www.stephendrogers.com
A: After working on a Fast Food account for 5 years, The Ad Man can tell you the money absolutely flows from Restauran --> Movie Studio.
In fact, from 1996 through 2006, McDonald’s paid $100 million dollars in royalties for their exclusive partnership with Disney. I can recall several franchisee meetings with restaurant owners grumbling about the expense, complaining their TV budgets were hijacked into advertising movie tie-ins instead of hamburgers.
Yet the practice continues.
Why? Because during that same 10-year period, McDonald’s netted over $1 billion dollars while promoting Disney flicks, even ones as mediocre as “Treasure Planet.”
When a fast food franchise throws their weight – and marketing budget – behind a movie, the extra advertising boosts the movie’s awareness level and bottom line.
In return, the restaurants receive something even more valuable… the “nag factor”:
Happy Meals were introduced in the late 1970’s to promote McDonald’s as a restaurant for families, specifically those with smaller children. The first toy / movie tie in was Star Trek in 1979. And the rest is history.
From a parental perspective, Happy Meals are a pain in the ass. Kids can nag you for days about a certain toy that they must get to complete the set. You buy the meal and the kids get their toy, which either breaks or is lost within 48 hours.
Fast-food marketers have proven time and again that kids can and will drive meal decisions. And few Happy Meal purchases are made in a vacuum… Dad’s ordering a supersized Quarter Pounder with cheese, Mom’s trying to be good with a yoghurt parfait, but splurges on a large fries and Diet Coke, etc. Before you know it, one Happy Meal has resulted in a $22 total bill. Now multiply that by millions of daily transactions and you see the appeal.
McDonald’s is hardly the only one bellying up to Hollywood’s bar. Last year, Burger King signed on with a trio of Paramount tent-poles: “Star Trek,” “Transformers: Revenge of the Fallen,” and “GI Joe: The Rise of Cobra.”
Summer movie tie-ins have considerably boosted its sales, Burger King has said in the past, and as a result, the company has aggressively pursued more high-profile releases.
"All three of these feature films boast a huge loyal fanbase and have carved out a permanent place in pop culture," said Russ Klein, Burger King's prexy of global marketing, strategy and innovation.
That’s not to say that every movie-tie in is a natural fit and flawlessly executed. Here’s a list of some recent duds.
But the greater lesson here is that when it comes to co-branding, the power is on the side of the content creators.
As authors, it should be comforting to know that IF your book is lucky enough to get optioned for film, and IF the movie studio can line up advertising support months before the release, then 3-inch, Chinese-made likenesses of your imaginary characters could wind up in the ketchup-stained hand of an overweight tweenager who whined to his parents for days until getting his plastic prize. And you, as the original author, might make a few more sheckles on the side.
Hey Gregory,
Thanks for the answer to my question!
Stephen
http://www.StephenDRogers.com
Posted by: Stephen Rogers | August 15, 2010 at 03:43 PM