Canadian philosopher Marshall McLuhan wrote it as early as 1964: “The medium is the message”The recently released research report by Digital Cinema Media and everyday people, titled “Maximising price: The role of media” , endorses this once again. It shows that screenings in cinemas realise a price premium of 14% compared to the average of all advertising channels.

This data confirms what many marketing professionals already suspected: premium channels deliver premium results for premium brands.

The logic behind premium channel strategy

For brands positioning themselves in the premium segment, the choice of media channels is at least as important as the message itself. The principle is simple but powerful: the context in which consumers encounter your brand helps determine how they perceive your brand. When consumers associate your brand with premium entertainment experiences, it reinforces the perception of quality and exclusivity. And that, in turn, determines how much consumers are willing to pay for your product.

Or as Rory Sutherland aptly puts it: “to economists, price is a number; to consumers, price is a feeling”

The chart shows that not all media channels are equal in their ability to generate a price premium. While outdoor advertising and social media perform below the average optimal price point, entertainment channels such as cinema, video sharing sites and television score significantly better. This suggests that premium visual entertainmentchannels contribute the most to effective premium positioning.

“In this time of heightened price scrutiny, price perception is absolutely key to brand success and our research showcases how cinema enhances a brand’s ability to maintain strong pricing power and optimise perceived value. Cinema stands apart – it’s immersive, fully engaging, and captures attention like no other medium, forging a deep connection with viewers. Our research bolsters this experience with real data, reinforcing the importance of context and the power of premium video to build long-term brand value.” ~ Karen Stacey, CEO, Digital Cinema Media

Entertainment: a strategic opportunity

Entertainment offers premium brands a unique combination of benefits:

1. Emotional engagement: Consumers are in a more receptive state of mind during entertainment experiences, leading to stronger brand associations.
2. Contextual relevance: The right film, series or event can fit seamlessly with brand values.
3. Qualitative reach: In addition to wide reach, entertainment provides access to specific, often buying audiences.
4. Storytelling opportunities: Premium entertainment provides a narrative context in which brands can weave their own story.

Successful case studies

BMW & Mission Impossible films: Action and performance

BMW trengthened its position as a premium car brand through a long-term partnership with the Mission Impossible franchise. The spectacular chase scenes in which Tom Cruise drives BMW models perfectly demonstrate the combination of performance, technology and design that the brand represents.

“BMW and ‘Mission: Impossible’ are a perfect fit. This provides the ideal stage for our most dynamic business athlete: the BMW M5.” ~ Uwe Dreher, head of Brand Communications BMW.

In addition to product placement in optima forma in the Mission Impossible films, BMW is also offering itself the opportunity for co-marketing ventures in which it makes the most of the popularity of the films.

Emily in Paris & Luxury Brands: The ultimate premium content strategy

In today's media landscape, Netflix's megahit Emily in Paris offers a fascinating example of how premium brands can benefit from entertainment partnerships. The series, which follows the life of luxury marketing executive Emily Cooper (played by Lily Collins), has become one of Netflix's most successful shows, with the second season being Netflix's most-watched programme of 2022.

Reach and impact

The numbers speak for themselves:

• The first season (2020) was streamed by 58 million households worldwide
• The first half of season four reached the top of the global TV chart with 19.9 million views in just four days
• There are 7 million posts on TikTok with the term ‘Emily in Paris clothes’.
• Numerous Instagram accounts like @EmilyInParisOutfits (170,000 followers) were created to identify the looks from the show

Brand integration with measurable results

What sets ‘Emily in Paris’ apart from traditional ad channels is the organic integration of luxury brands into the storyline. The results speak volumes:

• Vestiaire Collective: Following their collaboration in the fourth season, in which character Mindy Chen sells a couture outfit through the platform, Vestiaire Collective saw:
  • An increase of more than 22,000 followers
  • Almost a doubling of Google searches in the US (+85%) compared to the previous year
  • A significant increase in new sellers and buyers on the platform
• Baccarat: The luxury crystal brand seized the oppportunity to introduce consumers who know Baccarat only as a perfume brand to the full brand in a more holistic way. Together, they developed a new storyline to incorporate Baccarat's history into the show. In episode three, a masked ball takes place at Maison Baccarat in Paris:
  • Baccarat created a limited-edition ‘broken-hearted Coeur Amor’ crystal (€490) based on a product from the show
  • Jim Banfield, Baccarat representative, reports “very encouraging sales figures”
  • The integration helped the brand introduce younger consumers (who knew Baccarat mainly from the popular Rouge 540 perfume) to the wider Baccarat range
• Jacquemus: Searches for ‘Jacquemus cardigans’ increased by 18% month-on-month
• Ganni: Searches for ‘Ganni bags’ increased by 15% month-on-month
• Fashion items that appeared in the show saw significant increases in interest:
  • Searches for ‘sailor caps’ increased by 46%
  • Searches for ‘checked coats’ increased by 53%

Chopard & Cannes Film Festival: A legendary partnership

The Golden Palm, coveted by every director, awards the best film at the Cannes Film Festival every year. The award was redesigned in 1998 by Swiss luxury watch brand Chopard and has since been exclusively manufactured in the Maison's workshops, along with all the trophies awarded at the festival's closing ceremony. In addition, Chopard promotes the rising generation in the film industry by awarding the Trophée Chopard to a young actor or actress every year.

If a partner of the festival , Chopard associates itself with creativity, craftsmanship and artistic excellence - values that align perfectly with the watch brand.

Conclusion

The data is compelling: premium channels, especially those related to entertainment, deliver significant price premium. For brands, entertainment sponsorship offers a powerful way to reach their target audience in a context that reinforces their premium positioning.

By carefully choosing entertainment partnerships that authentically align with brand identity, premium brands can build a deeper emotional connection with their target audience. At a time when consumers increasingly ignore or block forms of advertising, entertainment sponsorship offers a welcome way to stay relevant without being intrusive.

Premium products deserve premium channels. Cinema and other entertainment platforms such as streaming have proven to be the ideal environment for brands looking to maintain and enhance their exclusive status.

Previously published on: Adformatie