Logo Network Aims Sales Pitch At Movies

MTV Networks’ Logo has embarked on an aggressive campaign to pick up studio sponsorships, pitching itself as the only place on television where the film industry can reach a dedicated gay/lesbian audience. And while it’s little surprise that studios are looking to target Logo’s core demo—gay consumers go to the movies three times as often as their heterosexual counterparts—some of the genres the network has signed up might raise a few eyebrows.
According to a recent study conducted by the Simmons Market Research Bureau, gay moviegoers are almost 75 percent more likely to go out and see a horror movie, and index about 54 percent higher when a sci-fi title is on the marquee. As such, the network is doing brisk business with studios that specialize in genre pictures, such as Lions Gate Films, which in late October committed to a three-week flight on Logo for the splatterfest Saw III.
Lisa Sherman, senior vp, general manager of Logo, said that while shilling the Grand Guignol ethos of pictures like Saw III may seem counterintuitive in light of her network’s sophisticated audience, the skew towards horror titles may have more to do with the recent buzz around the genre.
“We like gore as much as glitter, but it’s all a function of being on the cutting edge,” Sherman said. “On a film’s opening weekend, we’re more than three times as likely to be filling the seats.”
Motivating consumers to go see a film on its first weekend is crucial, especially when a studio is opening a genre picture like Saw III, which opened at No. 1 Halloween weekend, with a $34.3 million box office. “Horror absolutely has to open big, because the drop-off in the second and third weeks tends to be significantly higher than drama, which skews older,” said Erika Schimik, senior vp of media and research, Lions Gate. Schimik said that Logo’s target demo makes the net a great fit for Lions Gate. “The Logo viewer is someone who’s a tastemaker, and is more likely to tell their friends and family to go see a particular movie,” she said. “They’re similar to us in that they’re young and nimble and willing to take risks.”
With a potential audience that boasts some $641 billion in buying power, Logo has been able to grow its client base from three charter sponsors at launch to over 80, including high-end brands like Lexus and Saab and a number of newcomers to the space. “About 65 percent of our clients had never advertised in the gay marketplace before,” Sherman said, a roster that includes retail (Sears), fast food (Subway) and telecom (Sprint/Nextel).
Predictably, the dollars have followed. According to Kagan Research estimates, Logo will finish the year with gross ad revenues of $3.9 million, up from $500,000 a year ago. Since launching in June 2005, the network has nearly doubled its distribution to 25 million subs.
“Regardless of their affiliation [with MTVN], they’re still selling at bargain CPMs, although those are definitely creeping up,” said Stephanie Blackwood, managing director of Double Platinum, an agency focused on the gay/lesbian market. “It’s a great opportunity to reach a very attractive audience.”
from Media Week