Return on Investment Details
- The return on investment for product placement in feature film, television, and celebrity events are very multi-faceted. Most of Legacy Entertainment’s annual clients realize over ONE BILLION viewer impressions per year. The cost per impression traditionally comes in at .0004 per impression; this is the lowest cost per impression of any form of advertising.
- Many companies are able to off set the cost of slotting fees, which grocery stores, retail stores, and convenient stores charge for the real estate on their shelves for simply having their product in their stores. Whether products sell through or not, companies have to pay for this space rental fee. By Legacy’s clients showing their retail outlets, what they are doing to promote their product through entertainment marketing, the lion’s share of the store outlets have been offering reduced or eliminated slotting fees. The savings that most companies realize through reduced or eliminated slotting fees alone would be worth more than a HUNDRED times what the companies would be paying to Legacy for it’s services!
- Co-op advertising dollars are another area where companies are charged by their various distribution channels. They’re typically charged 4% on an accrual of sales. These funds go towards co-op advertising for such things as F.S.I’s, (free standing inserts in the Sunday newspaper), radio ads, television ads, etc. Most of Legacy’s clients negotiate with their distribution channels to either get reduced or eliminated co-oping budgets or the stores will sometimes offer enhanced ads at a lower fee or free end-caps to offset the entertainment marketing that Legacy’s clients are participating in, to drive customers into the store chains that carry their products.
- Trade journals: Every product is covered by its own industry’s trade journals. For example, beverages are covered by two major trade journals, that being “Beverage Aisle” and “Beverage World.” It’s very expensive to advertise in these trade journals.
- Legacy helps its clients to write up 2-4 page press releases that tell a sizzle of a story of what they’re doing to promote their products in the entertainment industry. Legacy will help to secure write-ups on these articles in the various trade journals.
- In most cases the trade journals will run these articles at no fee. These publications after all, would not be successful, if all they had in them were paid ads. The editors of these publications like to find very compelling articles about companies that participate in the genre of their publications.
To put a fine point to the actual dollar valuation Legacy has created a formula to quantify this valuation as follows:
If a product appears in a television episode for 10 seconds and the 30 second national ad rate for that series was $185,000 USD, (which by the way is the actual average cost for national Primetime television advertising), we would start by taking that figure of $185,000, dividing it by 30 seconds, and that would give you a per second ad value of $6,166 USD. If the placement was what we call an ‘A placement’, meaning the product clearing shows on camera in a very meaningful way., then we would take this per second value times the 10 seconds it appeared, and the value for that one 10 second placement in that episode would be $61,660 USD.
$185,000/30 = $6,166 per second for ‘A Placement’
- If the placement that had been orchestrated for that same 10 seconds in what we call ‘B placement’, (which would mean products shown further away from camera, partial logo cover up, not as prominent as an ‘A placement’) we would then take the $6,166 figure, divide it by two which would give us a per second value of a ‘B placement’ of $3,083 USD. Those same 10 seconds would equal $30,830.
$185,000/30/2 = $3,083 per “B” placement
*Most of Legacy’s annual clients, which are guaranteed a minimum of 12 client acceptable exposures per year, wind up on average, receiving more than 30 placements per year. *
- If you calculated an average placement of 5 seconds and you split the difference in value between an ‘A Placement’ and a ‘B Placement,’ which would give you a medium average $4,625. That would mean the average placement would be a value of $23,125 times 12, which equals $277,500 for the minimum performance, but if you take the average performance you would realize $693,750 USD. This valuation is simply for your broadcast value. When you calculate in the valuation from the other entities that we have mentioned, your true value is in the millions.
- Keep in mind a few factors, which will show that our calculations are actually very conservative. These considerations are as follows:
- Life Of A Feature Film
- US & Foreign Feature Film Release
- US & Foreign DVD/Video Release
- Prime Time Cable (HBO/Showtime)
- Basic Cable
- Network Television
- People these days normally watch what they want, when they way, commercial free. They simply record to their PVR (Personal Video Recorder) and they zap out the commercials. People don’t zap through the content of a show, as that is what they are there to view. The next factor to consider is television networks don’t rerun TV commercials without being paid for each one, where in product placement in the content of a series will show many times on different networks, syndicated programming, and various cable networks.
- When you consider the life of a feature film, the valuation is much more comprehensive. It first starts with US and foreign with Pay-Per-View, inflight movies, Internet viewing purchases, network television, and reruns. Your product will FOREVER be in the various film and television placements where your product was placed.
The images of celebrities with your products at the various celebrity events that Legacy helps to put on (there are approximately 100 of these events per year) have very high value and you will own these images forever.
William Shatner with Artic Ease
- In regard to how you can utilize the images, cart blanche without any further permission needed, is as follows:
- The verbiage attached to these images must read as follows:
- “As seen with”
- “As seen in”
- “Look who’s drinking (eating, wearing, etc.)”
- YOU ARE SIMPLY STATING A FACT
- The verbiage attached to these images must read as follows:
- We would need to secure further written permission to be able to utilize verbiage such as:
- “The official product of”
- “Endorsed by,” etc.
- In regard to where you may show these images without any further written permission, it is as follows:
- With the proper verbiage you can place the images on your website, put them in show books to show at conventions, trade shows, meetings with distributers and whole sellers, you can frame the images and put them up in your corporate office, in company newsletters, trade journals, etc.
- Legacy would need to secure further permission before these images could be placed on the product, at point of purchase, in ads directed to consumers, such as print ads, radio, or television commercials.
- The images that we provide to you, you will own forever. If you go to sell your company someday, it will help to greatly increase that value. It is a great way to secure channels of distribution as distributors know that the general public follows what Hollywood does.
- This type of advertisement is call implied endorsement and we feel that it is more powerful than paid endorsement.
- When viewers see their favorite actors with products in movies and television, their perception is that their favorite actors in a television commercial, the general consensus is, “hey, there’s my favorite actor in this commercial, does he really like the product or is he just being paid a large sum of money to say that he likes it?”
- If a company was to cut one, thirty second national television ad, they could afford to pay for Legacy’s services for more than THREE YEARS!