New Study Reveals Movio Clients Achieve Revenue Increase in Excess of $220 Million US
Methodology Validated by Harvard Statistics Expert
Movio, the global leader in data analytics and marketing solutions for the film industry, has released new research showcasing the effects of targeted marketing to moviegoers using their tools. Results show significant increases in cinema admissions and revenue due to the use of Movio Cinema worldwide.
“The objective nature of the evaluation plan means the results could have actually turned out negative for Movio, but instead these results strongly support the value that Movio’s approach can provide to both its clients and the industry as a whole.”
Harvard Professor, Donald B. Rubin has confirmed cinema exhibitors using Movio Cinema collectively experienced a USD227 million incremental box office revenue uplift in 2018. The analysis showed that moviegoers receiving direct communication via Movio Cinema increased visitation by 0.89 visits per Moviegoer. As moviegoers attend with family and friends, this resulted in 1.96 extra admissions, leading to an increase of USD16.61 in box office revenue, per moviegoer.
The average cinema exhibitor using Movio Cinema has 730,000 moviegoers in their database, equating to a total annual box office revenue uplift of USD12.1 million dollars for each exhibitor. The study determined that global box office uplift in 2018 across all exhibitors, utilizing the Movio Cinema platform, was USD227 million plus an additional USD97 million in concessions.
Using the theory of Causal Inference, an Observational Study was designed to model moviegoers’ behavioral and spend patterns. The methodology incorporated up-to-date thought leadership and state-of-the-art machine learning techniques to quantify the effects of targeted marketing using Movio Cinema. The methodology used has been verified by Professor Donald Rubin, Emeritus Professor of Statistics, Harvard University, internationally recognized as a leader in the fields of Statistics and Causal Inference.
“At Movio, we wanted to definitively measure the visitation and revenue uplift that exhibitors experience when incorporating Movio Cinema into their marketing strategy,” says William Palmer, Movio’s Chief Executive and Co-Founder. “This required an independent assessment of the findings and there was no one more qualified than Professor Rubin, one of the leading statistical experts in the field.”
“Professor Rubin’s validation of our results suggests Movio’s software presents an exciting opportunity for the cinema industry,” Palmer continues. “The application of data analytics in marketing decisions, whether by a studio or by an exhibitor, is now a proven way to grow box office revenue. Our goal is to continue to develop innovative solutions that deliver increased box office success.”
Professor Donald B. Rubin says “State-of-the art statistical Casual Inference methods, were updated to take advantage of modern computational advances, such as those used in current machine learning approaches, and then applied to Movio’s global moviegoer database, which contains billions of email communication events. This application numerically quantified Movio’s estimated impact on the cinema industry.”
Rubin continues, “The objective nature of the evaluation plan means the results could have actually turned out negative for Movio, but instead these results strongly support the value that Movio’s approach can provide to both its clients and the industry as a whole.”