Cinecom is fed up with movie reels

Cinema marketing is becoming a fully digital medium. This is also expected to benefit local advertisers.

Cinema marketer becomes a fully electronic medium. The fact that PubliGroupe was able to acquire the cinema marketer Cinecom last year fills the P management around CEO Hans-Peter Rohner with pride and joy. At last week's annual press conference, Rohner referred several times to the upcoming digitization of Cinecom cinemas and the associated benefits. Specifically, the cinemas will be equipped with an ADSL line, a 16:9 projector and a cinema media player so that advertising spots can be transmitted digitally from the second half of 2005 (see box below and page 7). With the digitalized marketing of advertising films, the cinema will gain additional attractiveness as an advertising medium, said Rohner, adding: "The cinema will become a new medium." As cinema-goers will not notice any difference, this statement is somewhat exaggerated. But from the point of view of advertising customers, there are certainly advantages, as handling is easier: the lead time of three weeks is reduced to three days thanks to digital transmission, and even subject changes are possible. Furthermore, uniform standards can be set with regard to lighting and sound quality. And last but not least, the high costs for film copies and their dispatch are eliminated and controlling is largely automated. This is because the booking tool at the Cinecom head office transfers the individual playlists to the individual servers, which send a completion report back to the head office after the screening has taken place.
In addition, Cinecom can expand its range of offerings: "As standard, we will offer selections according to film genre," says Cinecom Marketing Manager Jean-Claude Bruhin. These will be divided into six main groups: Action/Suspense, Romance/Drama, Comedy/Musical, Studio/Documentary as well as Family and Kids.
Cinecom also dives deeper locallyBut the important thing is that slides and film slides are no longer available. But SMEs need not worry - the projectors that are replacing the slide projectors can still be used to show still images (CinePicture, 7 and 10 seconds) or computer animations and filmed spots (CineMotion, 10 to 15 seconds), both with or without sound. This is particularly advantageous for local customers: Because a spot already produced for local TV can now also be played in cinemas. Radio spots can also be "recycled" by combining them with a still image in the cinema. What's more, the production of a CineMotion only costs around half as much as a film slide. In other words, cinema advertising can easily dock onto radio and local TV advertising and use their groundwork in the local market to its advantage.
However, it would be unfair to describe Cinecom as a free rider. Radios and primarily local TVs are also likely to benefit from digital cinema - firstly because the "customer exchange" will also work in reverse, and secondly because Cinecom also markets screen advertising, which results in further synergies. Above all, however, Cinecom is no greenhorn when it comes to local markets: unlike IP Multimedia, which has only just discovered SMEs (see WW 10/05), it has had intensive contacts with local customers for more than 20 years thanks to its subsidiary Perdiag, which has since been dissolved and integrated.
The eight sales outlets throughout Switzerland serve around 500 customers each. Last year, the P subsidiary generated CHF 9 million from this fairly stable market. Marcus Schumacher, Head of Local Sales, who has been working for Perdiag and Cinecom for 14 years, is unable to quantify the additional potential thanks to digital technology. "But the reactions from the market have been extremely positive and have highly motivated my team," he says. The twelve employees have already been retrained in digital technology for screens and cinemas.
Digital revolution: In Cinecom cinemas, the days of analog cinema advertising from tape are numbered.
Cinecom converts 330 of 475 cinemasIf everything had gone according to Cinecom's plan, digital cinema would have become a reality last summer. However, since the announcement of the new technology a year ago, the cinema marketer first swallowed up its competitor Mediavision Suisse and was subsequently acquired by PubliGroupe. These changes in ownership led to a year's delay.
The necessary installations will now be carried out at 330 of the 475 Swiss cinemas and movie theaters by the end of June. According to Jean-Claude Bruhin, Cinecom is investing a seven-figure sum for ADSL and hardware, with cinema owners covering the installation costs and paying a lump sum for equipment maintenance.
Although the 330 cinemas would cover 90 percent of all cinema visits, the digitization process will probably also be extended to most other cinemas - thanks to the Federal Office of Culture, which is financing around 100 projectors "for the screening of short films" in small cinemas. This expansion should be completed by mid-2006. (mk)
Markus Knöpfli

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