The Rs 2,150 crore film industry, which generates on an average 750 films a year, is the latest hunting ground for Indian advertising agencies in their quest to tap alternative revenue streams.
The Rs 300 crore advertising agency, Leo Burnett, has set up a separate division to provide integrated marketing services to film production houses. Christened Leo Entertainment, the division is likely to contribute between 5 per cent and 10 per cent to the overall growth of the agency.
Initially, the Leo Entertainment will target Hindi films and then move down south to gradually tap Tamil and Telugu films.
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The agency has tied up with film industry majors such as Ramesh Sippy, B R Films and production houses such as Target Films and White Feather. Leo Entertainment is targeting a presence in 15 films in 2002. It is in talks with as many as 20 companies for in-film advertising. Agency executives claim that most of the targeted clients are outside the Leo Burnett's advertising client base. However, Leo Burnett's clients for in-film advertising include companies with mega spends like Coca-Cola India (for brands such as Thums Up and Coke) and the durables brand Hitachi.
Sanjay Bhutiani, general manager, Leo Burnett and the head of Leo Entertainment, said: "Leo Burnett is perhaps the only advertising agency that has created a division especially to handle film marketing in totality. Though the division has been in existence for a while, but it is only now that we are firming up our strategies. We have aggressive plans for the division, starting this year, as we see a huge potential for big brands getting into films."
Leo Entertainment claims to offer a range of services besides in-film advertising to production houses. For instance, 'Advertising Package' would look at films as brands and market them while in 'Brand Placement', the agency will get involved in films from the script stage and offer advice to production houses on issues such as what kind of brands should be placed in the film, keeping in mind the target audience. Another major area of focus would be events and road shows to popularise films and songs. Other services offered would include web designing for films and hosting the sites, and also brand sponsorships to accommodate brands that do not gel with the film script. "We will try and associate some brands as sponsors of the film, on ground and not in the films," explains Bhutiani.
Leo Entertainment also plans to add celebrity endorsement to its sphere of activities. Here, the division will act as a mediator between film stars and companies looking for celebrities to endorse their brands. The agency has adopted the direct mailer route to approach companies who could be scouting for celebrities.