Revenue Per Second – A movie metric that will almost certainly find its way to the advertising industry

May 12, 2009 at 4:16 am Leave a comment

hour_glass_and_money

I came across a fascinating article on sharenator.org that compares the cost per second of various movies to the revenue per second that they generate. Shrek 2 cost $13,440 per second and generated $164,845 per second, whereas Terminator 3 cost $30,581 per second and generated just $66, 264. See the full article here.

Though our friends in the direct marketing area have almost certainly been looking at numbers like this for some time now, it’s almost a certainty that branding campaigns will be judged based on the cost/revenue ratio broken down to the second sooner rather than later. It seems natural and unavoidable in an industry that is hungry for metrics. It’s a pretty simple matter to find out how many seconds one’s television commercials have run, the average time consumers spend on a website, the average amount of time consumers look at any given print ad. With that information in hand, all we have to do is get the lads over in analytics to trot out the differential equations and multiple linear regressions to figure out exactly how much revenue was generated by the campaign in question. After that’s done, we’re dealing with third-grade math.

I’m fascinated by the notion that we may be able to develop a statistic akin to batting average or slugging percentage by which all agencies can be judged. How much simpler agency reviews would be if all we had to do was look at the average revenue per second generated by an agency’s work.

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Entry filed under: Advertising and Marketing. Tags: , .

John Cleese credits the advertising industry for the greatness of Fawlty Towers Apple has $29 billion in cash. Will it use $3 billion of it to buy internet rights to all TV shows?

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