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TOPIC: Co-Op advertising... How does it work?

Co-Op advertising... How does it work? 10 Feb 2004 23:05 #7435

  • Barry Floyd
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Somebody explain this to me.

So far we've never been able to afford the BIG Nashville Newspaper because the cost for doing our own independant ad was too cost prohibitive.

Somebody explain how this "co-op" advertising works?

Example: I see in the newspaper today, "Catch That Kid" is playing at 3 local Carmike houses and 5 Regal's.

If I understand correctly, the studio chips in for a portion of the ad costs, then the balance is split among the "listed" theatres. IF we were to have our theatre listed among the mix of theatres in the example ad above, would the cost be divided "3 ways" because you have 3 theatre chains or would it be divided "9 ways" because it's playing at nine different theatres?

For those of you who have done it... how well has it worked? Who do you contact for getting into this... your booker? the studio? or the newspaper?


Barry Floyd
Floyd Entertainment Group
Lebanon, Tennessee

Stardust Drive-In Theatre
Watertown, Tennessee
Barry Floyd
Floyd Entertainment Group
Lebanon, Tennessee

Stardust Drive-In Theatre
Watertown, Tennessee
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Re: Co-Op advertising... How does it work? 11 Feb 2004 00:30 #7436

  • RoxyVaudeville
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Barry,

I would contact the studio and inform them that you would like to be included in the co-op advertising. If you use a booker, have your booker do it for you. Are you first run? Generally they only co-op first run.

I haven't had any first run theatres for over a decade now, things may have changed, but back in the good olde days the cost of the ads were divided up by the number of theatres in the ad. Not companies or screens. If chain A had the picture in 3 locations and chain B in 2 locations and an independent in 1 location, then the cost of the ad was divided by 6 and chain A payed for 3/6 or 1/2 of the cost, chain B paid 2/6 or 1/3 of the cost and the independent with one location paid 1/6. Of course the theatres only paid their percentage of the cost on the ads based on the film rental %. The studio paid whatever % they were charging you for film rental. If you were paying 70% film rental the first week, then they paid 70% of the ad cost and you 30%. If the ad budget for the first week was $3,600 the independents 1/6 share would be $600 with 70% of that being paid by the studio which left the one location operator paying 30% of that or $180.00.

[This message has been edited by RoxyVaudeville (edited February 11, 2004).]
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Re: Co-Op advertising... How does it work? 11 Feb 2004 00:38 #7437

  • Larry Thomas
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In many instances, the filmco will do what they call "put you on formula" for advertising.

That means you pay them a fixed percentage of your boxoffice gross toward their coop. It generally runs around 2%.

Most coops these days are placed by agencies. And, yes, you need to contact the individual filmco about being included in the Nashville ads.
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Re: Co-Op advertising... How does it work? 11 Feb 2004 02:03 #7438

  • Mike Spaeth
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We have deals with most distributors that they take a certain percentage of box office gross. This percentage is paid with our film rental. It works out very well for us
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Re: Co-Op advertising... How does it work? 11 Feb 2004 02:04 #7439

  • outaframe
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ROXY & LARRY nailed your answer, but when yours is the only screen mentioned, it amounts to splitting the ad cost with the distributor, in the same ratio as the film cost %... It can also be referred to as "off the top"... Where you have a contract rate in force with a newspaper, the distributor will usually allow you to place your ads directly, then supply an invoice (from the paper) and tear sheets, which are figured in when you settle the billing for the picture...
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Re: Co-Op advertising... How does it work? 11 Feb 2004 13:04 #7440

We have a first run theatre in small metro area across the river from a major metro area. We were the only theatre in the smaller venue and there were one very large national chain 24 screen multi-plex and smaller state wide chain controlling the larger venue across the river. All the 5 other theatres were much larger multi-plexes.

We were charged equal percentage to the other theatres but recieved no advertisement in our local paper. Very very few came across the river to see us and many came from our city to the larger and newer venues because the only advertisement was in the larger city.

If it was $100 for the large 20 screen showing three prints, it was $100 for us with 4 screens and showing one print.

Complain, I did and never heard back and still get the same kind of billing.
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Re: Co-Op advertising... How does it work? 12 Feb 2004 13:45 #7441

  • BECKWITH1
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Our single screen was 5 miles away from our current 4 plex. The most significant difference is that the 4 plex is across the county line from the single screen. The 4 plex participated in Coop advertising while the single screen did not even get the choice. Given that coop ads are placed by ad agencies without showtimes we would still have to have a daily ad in the super expensive newspaper. On a per screen basis we were doing better without them at the single screen than the 4 plex was doing with them. We called our booker and cancelled all coop advertising for the 4 plex immediately. We have not regretted that decision in the least. We still had a few hangover bills from things that were already in the works and we saw no advantage from the ads that were placed.
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