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Introduction

Advertising has had controversial value to the public. The general public’s

attitude toward advertising has been increasingly negative over the years (Mittal, 1994).

Advertisers continue to extend their reach from newspapers, magazines, radio, television,

billboards, bus sides, taxi roofs, wheel covers, a progressive migration to the Internet and now

into public paid for spaces such as movie theaters. Consumers still have the ability to “spend

with their feet” and not attend movie theaters, but what effect is this intrusion having on movie

sales and general satisfaction of consumers in the movie going audience? Will theater owner’s

revenue gained from advertisers be offset by loss of audience due to a lack of customer

satisfaction experience? It is important to do research on advertising in mass media forms

because the effects of advertising are so profound and imminent. The movie industries survival

and the consumer’s response to advertising are vital to the future of the movie industry, the future

of movie theaters as well as for the movie-goer.

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Chapter 2
Literature Review

Advertising in movie theaters would seem to lowers attendance in people over age 30.

Inversely, we predict that advertising is less noticeable and more interesting and “cool” to

audiences 30 years of age or less due to these “younger people”, being acclimated, over a

lifetime of exposure to advertising.

As media usage has changed and evolved to having more viewing options, the

competition for ‘eyeballs’ and a viewing audience have become more fragmented. Movie

theaters have historically been a safe haven from advertising, but recently have emerged as a

stronger contender for those advertising dollars.

The ability for advertisers to subtly introduce more clever advertising, both static and

short film length, speak of a public who is often in a restful mood and vulnerable under the

auspices of ‘entertainment’

The Advent of Movie Theater Advertising

Advertising’s introduction back into movie theaters is relatively recent in that it began

again 2001 during the fallout of the dot.com boom and a successive stock market crash. Theater

owners looking to build revenue during a time when unemployment was up and the general

public had less disposable income turned to advertising on the big screen. Movie theater

attendance has historically been consistent during good times and bad times as patrons flock to

the movies to escape reality and be entertained under the best and worst of circumstances.

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Cinema Advertising started in the early 1900's in Europe where it remains very popular
today. Cinema Advertising currently makes up approximately 1% of dollars spent on
advertising in Europe. Half a century ago, advertisers in the U.S. often reached customers
using cinema advertising. But in the 1950's television became the advertising medium of
choice. Since then, TV advertising has grown into a $60 billion dollar a year industry.

But with more than 200 TV channels and invention of TIVO to zap commercials,
advertisers are returning to cinema advertising. In 2003, over $350 million was spent on
cinema advertising, up 37% from the previous year. Velocity Cinema Advertising was
established in 1999 to help agencies and advertisers place cinema campaigns in multiple
markets across the country. (Velocity, 1998 p. 1)

Some of the factors contributing to movie theater box office decline are social factors

such as eroding theater environment (talking, cell phones, babies crying etc.); sacrificing long

term relationships with theater-goers for the increase in short term profitability (commercials, no

ushers etc.); higher quality experience elsewhere (home theater); declining quality of mainstream

movies; easily available long tail content alternatives (Netflix, Blockbuster Video, Cable, TIVO

etc.); price; demographics: aging baby boomers simply go out to the movies less (Goldstein,

2005 p. 1).

“The Public”, and children specifically, are targeted because of their susceptibility and

status as a “captive audience” once in movie theaters. "Theaters are being more aggressive in

pursuing advertisers, versus being concerned about turning off customers”. The trend started

nationally when companies started sponsoring movies." (Robertson, 2001). “It is generally

accepted that cinema is a high-impact medium due to the largely captive and attentive audience,

compounded by the size of the visual stimulus and the quality of the sound. Add to this,

potentially low media and environmental clutter and distractions, as well as the audience’s

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inability to do anything other than look at the screen (i.e., no “zipping” or “zapping”)” (Ewing,

Foster, Du Plessis,2001 p.6).

Past research has shown implications of advertising having negative health implications

in four significant ways;

Physical health is cited as the vulnerability to mimic good or bad social habits based on
advertising influence. Emotional health can be affected by delivering media-imposed
definitions of beauty, sexuality, maturity and problem-solving. Advertising also plays an
influential role in other emotional issues such as instant gratification. Social health
because advertising often communicates attitudes, values, beliefs and ideologies,
including those of consumption, competition and materialism. Finally, it can affect our
cultural health when we observe how, when, and if certain groups of people are
represented or not represented in advertising messages. (Fox, 2001 p. 13)

The origins and success of advertising in movie houses in Phoenix, Arizona and the

successive growth of movie theater advertising in the ensuing years show an initial surge in the

form of mass media advertising. Large movie theater chains picked up the idea and it has

contributed $200-$300 million in revenue with a 20% growth rate. (The Business Journal, July 6,

2001).

Advertising’s impact on Society

The authors of these articles spoke to the concern of being deluged with advertising in

every instance and space of humanities experience. The annoying and unhealthy impact is that

these could turn-off and offend many viewers. Americans often feel assaulted by advertisements

and commercials. There are advertisements and commercials in schools, airport lounges, doctor’s

offices, movie theaters, hospitals, gas stations, elevators, convenience stores, on the Internet, on

fruit, on ATM's, on garbage cans and countless other places. There are ads on beach sand and

restroom walls. "I don't know if anything is sacred anymore," said Mike Swanson, who directs ad

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placement for the ad agency Carmichael Lynch, when he spoke to the Associated Press. (Ruskin,

2006 p. 2)

The assault of advertising intensifies virtually every day. With ad budgets skyrocketing,

advertising techniques inevitably become more invasive and coercive. Advertisers are engaged in

a relentless battle to claim every waking moment, and what one executive called, with chilling

candor, mind share (Ruskin, 2006).

Advertising through History and its development

In a historical context, when Alexis de Tocqueville visited America on the 1830’s he

observed “a kind of decent materialism” emerging. The debate over Capitalism and ethics began

to emerge in different circles of opposing views such as the article written by Max Weber titled

“The Protestant Ethic and the Spirit of Capitalism”, an essay focusing on Europe where Weber is

quoted as saying “material goods have gained an increasing and finally an inexorable power over

the lives of men as at no previous period in history.” (Schudson, 1984 p. 234)

The book “Advertising, the Uneasy Persuasion – It’s Dubious Impact on American

Society” differentiates the needs of people and the exploitation of consumers for marketers and

advertisers gains. A critique ensues over the straw defenses put out by the advertising and

marketing crowd to say that they are only giving “the people what they want” much like a drug

pusher who may chide that they only sell to a clientele who already uses the drug they sell

(Schudson, 1984 p. 237).

The preponderance of marketing and advertising to “create motivations that propel the

race of consumption” (Schudson, 1984 p. 235) come into clear focus as the science of

advertising and marketing is rebuffed by arguments of fickle consumers and less than scientific

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methods for targeting specific demographics by the advertising and marketing advocates.

“Marketers do not actually seek to discover consumer needs as much as what is available among

commercial choices (Schudson, 1984 p. 235).”

Advertisers Current Standing in the Market Place

Two recent surveys offer conflicting reports on moviegoers’ attitudes towards

movie ads. An Arbitron survey found that two-thirds of adults and seven in 10 moviegoers

between the ages of 12 and 24 “don’t mind” the ads. But an Insightexpress survey found that

52% of those surveyed found the ads intrusive, 53% said theaters should stop showing them, and

27% said showing the commercials will cause them to go to movies less frequently. Several

organizations have web sites urging people to oppose movie advertising. However, we could find

only anecdotal information on the increase in the number of movie trailers. There does not seem

to be the same level of opposition to the showing of previews. According to the National

Association of Theater Owners (NATO), the National Conference of State Legislatures, and two

organizations opposed to movie advertising, no state requires movie theaters to advertise the

starting time of their feature films. (Frisman, 2006)

Hypothesis Question Synthesized

Predicated on the information gathered on this subject, the following hypothesis is being

offered: Attendance at movie theaters is being affected by advertising in the movie theaters.

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Cha pte r 3

Methodology

This research will attempt to show the relationship between the independent variable:

advertising in movie theaters and the dependent variable, attendance of movie theaters in

Marina Del Rey theaters. The primary intervening variable in this study are age, income and

education background. These variables seem to be the most prominent in affecting outcomes of

the research found so far. A survey questionnaire was created for a non-probability, purposive

sample of 120 movie-goers in Marina Del Rey, California.

Independent Variable: Advertising in Movie Theaters

Dependent Variable: Attendance at Movie Theaters

Intervening Variables: Gender, age, education level and income

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Advertising in Attendance at
Movie Movie
Theaters Theaters

Independent Dependent
Variable Variable

Gender, age, education level and


income

Intervening Variables

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The illustration on the previous page shows how advertising plays a role in the decision

of movie-goers to attend movies. Other variables such as gender, age, education level and

income contribute to the decisions impact on movie theater attendance.

This questionnaire is completely anonymous and confidential. Please answer each question as

truthfully as possible and do not leave any questions unanswered. Your time and participation

are appreciated greatly for this academic study.

Part I - Please Circle your Answer:

1. How many movies a month do you view in movie theaters?

1-2 3-4 5-6 7-8 9 or more

2. On average, how many advertisements or commercials would you say you are subjected
to before watching a movie (please exclude previews)

1 2 3 4 5 or more

3. What types of commercials have you seen at movie theaters?

__Branding commercials __Local job opportunities __public service messages __other

4. On a scale of 1 to 5(1=lowest, 5=highest), please rank the following as to which you


perceive as advertising the most.

TV__ Radio__ Internet__ Movie Theaters__


Other________________________________________________________________(Fill in)

Part II - Please circle the answer that most clearly describes how you feel about the
following statements according to the scale below

SA=Strongly Agree A=Agree N=Neutral D=Disagree SD=Strongly Disagree

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1. I hate advertisements and commercials that are shown before a movie in theaters
(previews excluded).
SA A N D SD
2. I will arrive late or miss part of the movie to avoid advertisements before a movie.

SA A N D SD

3. Advertisements shown before movies do not affect my movie attendance.

SA A N D SD

Part III - Please Circle

4. Age: 18-29 30+

5. Gender: Male Female

6. Income: 0-$15,999 $16-$25-999 $26-$35,999 $36-$55,999 $56,000 & up

7. Education:

Some High School HS Diploma Some College College Grad

Post-Graduate Degree

Please feel free to share any additional comments you have about this subject matter below:

The questions that comprise this research instrument have been prepared to obtain the pertinent

information from a random research sample of 105 respondents to measure whether or not, within the

sample, there is a belief that advertising at movie theaters affects an individual’s attendance at movie

theaters in general or that particular movie theater.

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Distributing Your Survey by E-mail
Sending your survey by email couldn't be easier, just take the link below and copy it into
your message. For best results put the link onto a line of its own to ensure that your
participants email program doesn't word wrap it and cause problems.

PLEASE NOTE: If you wish to know who has taken your survey then you will have to ask
them in one of your questions. Alternatively go back and select option 3 on the previous
page and we will send a code to each of your participants so we know who has and hasn't
completed your survey. This option is only available to 'Premium' subscribers and is
not a part of either the 'Free' or 'Survey Extra' service. Click Here for more information.

Anticipated Data

The table below represents projected data for a Likert statement on the survey instrument.

The statement “I hate advertisements and commercials that are shown before a movie at

theaters.” was cross-tabbed with age of the respondents. Since 79% of all moviegoers are age

18-49 (an overwhelming majority) 30 seemed a good middle spot to create a demarcation of

differing cultural and age differences.

Table 1

“I hate advertisements and commercials that are shown before a movie in theaters.” by age

group.

Age SA A N D SD Totals
Under 30 10 05 5 15 15 50 (50%)
(20%) (10%) (10%) (30%) (30%)
30 and above 20 20 (40%) 2 (4%) 5 3 (6%) 50 (50%)
(40%) (10%)
Total 30 25 (25%) 7 (7%) 20 18 100 (100%)
(30%) (20%) (18%)

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If the results were valid, it could be concluded that adults over age 30 are generally more likely

to be offended by advertising in movie theatres than adults less than 30 years of age. If the data

was from an actual survey, it would also imply that the younger demographic have a more

accepting attitude toward advertising as a whole.

Affluent viewers are popular targets for a lot of advertising, including TV advertising.

Because they are bombarded by promotional messages so often and because they are more

frequent purchasers, affluent consumers are likely to be more jaded in their reactions to all

advertising, including TV advertising. More affluent people tend to watch television less often

than less affluent people (Condry, 1989). When they do watch, presumably it is because they

expect to get gratification from the programming. Those affluent viewers who anticipate

enjoying TV programs are more likely to find TV advertising intrusive. Also, those affluent

viewers who are more sophisticated about television advertising are more likely to be offended

when it does not fulfill their expectations. H1a: Affluent viewers who find TV advertising

intrusive are expected to dislike TV advertising. H1b: Affluent viewers who are offended by TV

advertising are expected to dislike it more (Alwitt & Prabhaker, 1994, p. 1) . This idea would

connect the results of Nielson Media Research, 1997 of audience demographics of adult

moviegoers that shows that 44% are in professional managerial positions, 46% are college

educated, 46% are male, 54% are female, 50% of all moviegoers are ages 18-34, 70% combine

dining out with seeing a movie and 79% of all moviegoers are ages 18-49. Since education is

often associated with affluence and income, the household income of the respondent survey was

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Household Income Moviegoers % of Population
$30,000 + 75% 60%
$50,000 52% 35%
$100,000 17% 7%

Source: Nielson Media Research, 1997

Conclusion

In summary, we find little value in advertising in general, and find it invasive and

harmful in most instances. To interrupt private leisure time and at the public’s personal expense

requires either a literal boycott or a “vote with their spending dollars” type voice from the

consumer public. The researcher predicts this will be one of the causes of the decline in the

attendance of movie viewers. Lawsuits brought against the movie industry such as Fisch vs.

Loews Cineplex Entertainment Group got the attention of movie advertising executives and

Loews actually complied with the request to list actual start times of movies as a first step

towards appeasing the complaints of movie patrons. A 2004 online survey of 500 adult

moviegoers by Insightexpress, an online market research service, reported that 53% of those

surveyed said theaters should stop showing commercials, 52% said the ads are intrusive, and

27% say the showing of commercials will cause them to go to movies less frequently. This

survey also found: 71% believe they should pay less for a movie if ads are shown; 18% enter the

movies later to avoid the commercials; Moviegoers younger than 35 are more receptive to movie

ads; and moviegoers would be more receptive to ads if they were funny, or of higher quality than

conventional advertising. (Peel, 1995).

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The conclusions of this study and the section referring the comparison of advertising on

TV versus other media point to tolerance factors that are easily explained due to the voluntary

nature of consuming advertising as opposed to being subjected to it. Other than arriving to the

movie theatre late, which is difficult since theatres are reluctant to publish actual movie start

times, there will be some parallels between TV viewers and movie goers and the similar feelings

of being interrupted during an entertainment experience.

"It is completely ludicrous to have moviegoers pay good money to watch


commercials -- they can do that at home for free," said attorney Douglas Litowitz.
"Moviegoers are busy people who want to see feature films at the times set forth
on their tickets and in newspaper listings; to keep them in a low-level state of
confusion so that they can be force fed advertisements is a breach of contract and
a deceptive consumer practice. The newspaper listing and the tickets should state
the actual times of the commercials, the coming attractions, and the feature film."
(Nadar, 2003)

According to attorney Mark Weinberg, the lawsuit strikes a blow against


"commercial creep": "Our culture is already too commoditized, too
commercialized, too branded, and too inundated with demands that we consume
more products. The function of art is to elevate us beyond commercialism. There
should be at least one place left in culture that provides a temporary reprieve from
market research and manipulation." (Nadar, 2003).

References

Journals

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Alwitt, Linda F. & Prabhaker, Paul R. (1994, p. 1). Identifying who dislikes television
advertising: Not by demographics alone. Journal of Advertising Research, 34 p. 1.

Ewing, Michael T., Foster, Charles, Du Plessis, Erik (2001 p. 2). Cinema Advertising Re-
considered. Journal of Advertising Research, 41 p. 1.

Mittal, B. (1994). Public assessment of TV advertising: Faint praise and harsh criticism. Journal
. of Advertising Research, 34(1), p. 1

Internet

Fox, R. F. (2001, November). Warning Advertising May Be Hazardous to Your Health: Ads Pose
a Threat to Physical, Emotional, Social, and Cultural Well-Being. USA Today (Society
for the Advancement of Education), 130, 62+. Retrieved October 1, 2006, from Questia
database: http://www.questia.com/PM.qst?a=o&d=5002426205
UID: trevathantim@yahoo.com Password: Welcome

Frisman, P. (2005). Movie Advertising and Starting Times. OLR Research Report.
Retrieved November 13, 2006, from http://www.cga.ct.gov/2005/rpt/2005-R-0091.ht

Goldstein, P. (2005) The Big Picture: Now Playing: A Glut of Ads. (L.A. Times, July 12, 2005).
http/www.latimes.com/business/custom/admark/la-et-goldstein12jul12,1,35978.story
(The above link is no longer accessible, but recorded for the article below as a reference
within the text)
http://bigpicture.typepad.com/comments/2005/07/declining_movie.html

Nadar, R. (2003). Opposition to On-screen Commercials. Commercial Alert Web Site


Retrieved Nov. 13, 2006, from http://www.nomovieads.com

Peele, S. (1995). , Fisch v. Loews Cineplex Entertainment Group Retrieved February 23, 2003,
from http://www.nomovieads.com

Robertson, A. (2001) Movies Houses Build Ad Business. The Business Journal


(July 6, 2001 v21 i41 p3).Retrieved September 30, 2006 from
Infotrac database: http://www.infotrac-college.com
UID: trevathantim@yahoo.com Password: pxflfq2b7m

Ruskin, G. (2006). Ad Creep. Retrieved November 13, 2006, from


http://www.commercialalert.org/issues/culture/

Schudson, M. (1984). Advertising, the Uneasy Persuasion: Its Dubious Impact on American

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Society. New York: Basic Books. Retrieved October 1, 2006, from Questia database:
http://www.questia.com/PM.qst?a=o&d=88989576

Velocity Cinema Advertising (1998). The Genesis of Movie Theater Advertising Revisited,
Retrieved October 5, 2007, http://www.movieadvertising.com/cinema_ads.html

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