Marketing Budget Matches Production

A key insight about marketing budgets in movies and video games is that companies often spend as much or more on marketing as they do on production. Here's the breakdown:

Marketing Budget Reality

• Movies and video games typically spend 100-150% of production budget on marketing
• Example: $150M movie production = additional $150-200M on marketing
• Video games like Grand Theft Auto spend up to $500M on marketing alone

Why This Matters

• Marketing spend is often overlooked/unknown by consumers
• Each movie/game launch is like creating a meaningful sized company that lasts 2-3 years
• Similar to presidential campaigns - massive marketing spend deployed in concentrated timeframe

Evolution of Marketing Approach

Old School Method

• Traditional brand advertising (like TV commercials)
• Half the budget considered effective but unknown which half
• Example: Procter & Gamble doing random Super Bowl sponsorships
• Limited ability to measure effectiveness

New School Method (Moneyball Approach)

• Performance marketing with measurable results
• Every dollar tracked and attributed to specific purchases
• Example: Native Deodorant using targeted Facebook ads
• Data-driven decision making for ad spend
• Ability to measure and optimize each marketing dollar

Movie Marketing Innovation

• Use of data analytics for trailer testing
• Biometric scanning during trailer viewings
• Heart rate monitoring for audience reaction
• Facial recognition to gauge emotional response
• A/B testing with 50+ versions of trailers
• Focus on measuring specific audience reactions at specific moments

This approach represents a shift from traditional "gut feel" marketing to data-driven decision making, similar to how D2C brands disrupted traditional retail marketing.