A recent NY Times article discussed some of the problems faced by Hollywood movie studios and the fact that they have been cutting their advertising budgets. The studios, well established as some of the savviest marketers around, are now looking for a better return on their marketing dollar and are turning to earned media. 

One of the examples cited was a Paramount Pictures campaign that turned to traditional and social media to create demand for a new low-budget production. The movie, made for only $10,000, sold over $104 million worth of tickets despite the fact that there was no advertising. 

Appropriate publicity can generate far more attention to a new product or service than a blatant advertising campaign. Some of the reasons cited by the New York Times for moving to PR as opposed to advertising include: 

• Greater credibility - Consumers feel that if an article appears about a product or service, that the journalist, blogger or editor must deem it worthy of mention. 

• More granularity - Consumers are looking for details and feedback prior to making an entertainment purchasing decision. 

• New methods of accountability - Translating earned media into quantifiable numbers that can demonstrate tangible results. 

This article reinforces a conclusion that we share with Al and Laura Ries (see previous newsletter article) that PR is better suited to creating brands and launching products than advertising, and that advertising is best suited for a maintenance role.