fans for brands

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The Rise of Facebook for Film Marketing

For the Film Marketing Industry Rapid Social Media Growth is a Blessing and
a Curse

Film marketers have a growing need to access a social audience prior to a movie
release. Over $20 Billion USD (globally) is deployed to advertise and promote new
films annually - and 90% of all major film titles now use social media to help market
the movie. Facebook has become the dominant social media channel. Over the last 18
months film advertising spend on Facebook has risen from zero to over $300 Million
Euros in Europe and the US. The major studios (Warner, Disney, Fox, etc) have
increased social media spending per film from $65,000 in 2010 (average) to $94,000
in 2011 in each major European country (Source: Gruvi.tv).

"Facebook represents one of the newest, fastest growing online marketing channels,
and allows us to effectively aggregate and manage fans in the process of marketing a
new film."
(Joshua Heaton Armstrong, Digital Marketing Manager for Sony Pictures
Releasing UK)

On top of major entertainment and Fortune 500 brands entering the world of
Facebook marketing, the surge of general social media usage (Facebook now accounts
for 1 in 4 Internet pageviews U.S.*) makes attracting relevant fans to an
entertainment brand's Fan Page an ever more complex and expensive process.
Compounding matters in the movie industry, is the fact that most films released each
year are original screenplays (in 2009, 850 of 1200 films released in Europe*) without
the benefit of a sequel premise, or an adaptation of a book, comic or play. This makes
traction in the very early stages of a campaign complex and expensive because the
film is relatively unknown. According to Gruvi’s research these initial costs can be as
high as €3 - 7 per fan (Source: Gruvi.tv).

The potential of being able to efficiently drive 'likes' and engagements to any
Facebook Fan Page is huge. and advertising spend on Facebook is estimated by many
inside the entertainment marketing industry to reach $10 billion USD by 2015. To
quote Adam Rifkin from Techcrunch, "Five years from now, billions of dollars of
advertising will be spent to direct consumers from one part of Facebook . . . to
another part of Facebook."

Source: 2010 IAB Internet Advertising Revenue Report

How Gruvi Links Fans to Brands on Facebook for Film Marketers

Gruvi aggregates, tracks and directs users towards branded Facebook Fan Pages to
help marketing teams target and acquire high quality fans early on in the campaign.
This is done through creating spaces (applications) where fans want to hang out so we
Ben Johnson · +45 313 706 72 · http://apps.facebook.com/gruviapp/ · http://gruvi.tv
© 2010 gruvi Ltd
can we understand their tastes, and then make relevant recommendations and
encourage them to take action.

As a first step into the entertainment vertical Gruvi is building (in Beta) a
personalised entertainment guide application that recommends the right movies
playing locally to the user based on their tastes and the tastes of their friends.
Alongside this social recommendation system is booking system that allows the user
to find out when and where the movie is playing and then buy the tickets. There are a
host of features in the pipeline that also allow users to discover, share and have fun
competing for points and prizes.

Off of the back of the main application Gruvi can efficiently provide Fan Page tools to
the content owner. These feature on a landing page tab that includes:
• Video fan gate system
• Showtimes
• The ability to see which of your friends also like this movie
• Ticketing (coming soon to the UK)
• Quizzes and promotions & complex games and puzzles

This benefit to the film studio is that they can communicate and engage more
effectively with their audiences on Facebook, by creating an environment where the
user is presented with all information and content related to the film as well as
opportunities to compete in simple and fun interactive games that provide the
opportunity to win prizes and tickets.

Why Social apps are important to Moviegoers

Based on Stradella Roads (http://www.stradellaroad.com/wp-content/uploads/
2009/10/moviegoers-2010-f.pdf) comprehensive survey into movie going habits there
are three key areas an application should address in order to target the complex
behaviours associated with choosing a film and going to the movies. Below you'll find
the key research and how this is driving the development of Gruvi:

Data - What data and information do I need

Influence - What helps me choose a film
Events - How do I find the time & who wants to come with me

Data
The following content is what moviegoers search for online before going and seeing a
movie:

Type to enter text

Source: Stradella Road 2010

Gruvi features for Data

1. The app focuses on delivering the key content features.
2. Based on this content the ability to quickly and easily identify what you would
like to watch and to make a key buying decision

Influence
Moviegoers are highly influenced by group decision making. Having someone else
want to see a movie is as motivating as the story in the movie itself.

• 75% of moviegoers trust the opinions of friends and that these comments and
opinions are incredibly important in the decision making process
• 92% (http://www.screenvision.com/s/audience/local_impact/) - of moviegoers
attend the cinema with someone else
• 54% of the time the decision of which film to go and see is based on what that
other person wanted to see
• our own survey showed that serious movie fans (people who browse film sites
regularly) commonly display social networking behaviours (share, rate comment
via Twitter, Facebook, etc) 2 - 3 times higher than the rest of the sample
population.

Ben Johnson · +45 313 706 72 · http://apps.facebook.com/gruviapp/ · http://gruvi.tv

 Write a Blog Post or Tweet

Rarely 16.00% 17.00%

Sometimes 25.00% 16.00%

Regularly 15.00% 5.00%

Very Often 7.00%

2.00%

Movie Fans Sample Population

Share Content via Social Plugins

Rarely 24.00% 21.00%

Sometimes 24.00% 15.00%

Regularly 20.00% 10.00%

Very Often 10.00% 6.00%

Gruvi features for influence

1. A social recommendation and booking engine with an emphasis on showing you
what your friends like/dislike, have seen or want to see
2. The ability to quickly see what content people are interacting about e.g. Friends
comments about a particular movie + Other moviegoers comments about a
particular movie, etc
3. The ability to easily share opinions, preferences, ratings and content to the news
feed and within Gruvi

Events
The process of going to the cinema is affected by ‘stage of life considerations’. For
example parents go to the cinema either with their kids or ... to escape them - these
two scenarios obviously affect the types of movies the parents go to see. Typically, the
decision to go to the movies is not made alone: It is made with friends, with dates,
with parents, and with kids. It is often made in groups.
• 46% of moviegoers we found in theaters were attending in groups of 3+
• 52% make their mind up to see a particular movie at least 1 month before release
• But ... decisions to go to the theatre are made on impulse with 72% made at max 2
days before the event.

Development features for Events

1. The ability to say you want to see a particular movie to your friends
2. A reminder for when that movie is about to release

 3. The ability to easily and socially book your cinema

Why apps and communities are important to all brand managers?

Applications are like having ad units tied to a database. According to Buddymedia, a

leading social media/brand engagement platform which shares investors with
Facebook, branded applications will be one of the major revenue streams for the
social net: they are 5x more valuable than television advertising, and 75 times more
cost effective than banner ads (http://www.slideshare.net/lazerow/buddy-media-
social-ad-summit-presentation-presentation check out slide 16).

90% of consumers online trust recommendations from people they know; 70%
trust opinions of unknown users. (Econsultancy, July 2009)

Directing users to ‘liking’ or engaging with the film’s Facebook Fan Page early in the
campaign through branded applications is not only more beneficial for the momentum
of a release because of the network effect of users posts and interactions spreading
that can be shared via the newsfeed. If the campaign is managed correctly it can also
be incredibly cost efficient. From Gruvi’s recent campaigns, earning relevant and vocal
fans months before the film released, cost as little as 1€ (two-thirds below current
market costs) these fans then went on to engage and share content using the Gruvi
powered Fan Page tools mentioned above.

Gruvi’s applications and Facebook's data technology also provide metrics that allow
the film marketer, to estimate the effectiveness of their campaign spend from
awareness right through to action and track the quality of users that are converting to
‘fans,’ based on ticket sales and other barometers for measuring campaign success.

Success
Gruvi solves the problem of aggregating and directing the right user to the brand
owner’s Fan Page. The results of using Gruvi services are:
●Improved conversion of users to fans - we have a 50% conversion from users
to fans with our fanpage tools that’s 35% more effective than just advertising
users to the page.
●Improved targeting of potential fans - our recent email campaign for The
Kings Speech had a 22% click through rate to the promotion on Facebook that’s
5 times higher than the industry standard ctr.
●Lower acquisition costs of fans - the market rate for a fan in Denmark is
approximately 18DKK or 3.59 USD we have a track record of acquiring fans for
as little as 3DKK or 0.60 USD
●The fans become the promoters - our game apps led to 36% of users sharing
their results to their news feed to challenge their friends which in turn led to
the ‘earned media’ of more users joining the fan page
●Better fan metrics - using our reporting the customer can estimate the
effectiveness of their campaign spend and track the quality of users that are
converting to ‘fans’ - since introducing this we the budget we have been
allocated have doubled

Ben Johnson · +45 313 706 72 · http://apps.facebook.com/gruviapp/ · http://gruvi.tv

About Gruvi
Gruvi aggregates and directs users towards brand Pages on Facebook to help
marketers target and acquire high quality fans early on in the campaign cycle. We do
this by creating applications that make the process of discovering, interacting and
sharing content with friends easier and more fun. We find fans for brands on
Facebook. We are starting with film where we have been helping major studios in
Europe double and triple the performance on campaigns. Expect to see Gruvi coming
to a vertical near you.

Opportunity to meet the Founders:

Ben Johnson and James Hobbis (Gruvi co-founders) have been invited by the Danish
Innovation Center to Silicon Valley from the 3rd to the 17th of June to present Gruvi
to investors.

Contact information:

· Contact: Ben Johnson, Founder, ben@gruvi.tv

◦ DNK Tel:+45 313 706 72

· Photos, logo download and further press resources:

· http://gruvi.tv/press-kit/