The study sought to uncover several things, including whether targeted concession discounts could increase the amount moviegoers spend per visit, increase the number of items purchased, positively influence visitation, and generate concession sales from moviegoers who typically did not purchase concessions.
To answer these questions, Movio conducted a trial between November 2021 – March 2022 with two US exhibitors involving over 28,000 moviegoers. The study tested the different impact that $1, $2, and $4 discounts on large-sized popcorn had on moviegoer purchases. Each exhibitor used four groups in total, including one control group, with all participants consisting of moviegoers with historically lower ratings of spend-per-admit. These were identified through past behavioural data.
Interestingly, the study found that the $2 discount performed better overall than the $4 discount. This is a welcome result for the industry, as it shows higher discounts are not necessarily more effective.
The findings also indicated concessions discounts could increase the overall amount moviegoers spend each visit, with up to a 17.6% increase in spend-per-admit, and also proved that concession discounts could increase the number of concession items purchased overall. The two moviegoer groups in the trial were ranked in the lowest 25% in terms of historical spend-per-admit, but the discounted popcorn produced a 44.1% and 37.1% increase in spend-per-admit, respectively.
The research found that discounted concessions could positively influence visitation. While the trial ran during a restricted window of time, with a relatively limited film slate, the results still showed an uplift in visitation rates. This was calculated by monitoring visitation rates when participants received the discount offer in advance. The $4 discount produced a visitation rate of 39.3% compared to 36.3% for the control group; the same discount also demonstrated a slight visitation rate increase for group two, with 30.9% from 29%.
Ultimately, the research indicates promising insights for exhibitors to capitalise on – namely:
- Discounted concessions can increase overall spending during cinema visits; and
- Discounted concessions can motivate moviegoers who do not usually buy concessions to take advantage of a discount and spend on concessions.
“Our goal is to help our clients and the industry to answer challenging business questions such as ‘does discounting concessions cannibalize spend’?” says Sarah Lewthwaite, Movio CEO. “Movio is uniquely positioned to generate research like this study, and we are thrilled with the actionable insights it will provide.”
For more information, check out the full study results here.
