Marketing

Studio marketing departments specialize in movies that fall either into one genre and one targeted demographic or one genre and all demographics. Just think about a horror film like "Saw" or a comedy like "American Pie". They each have a clear genre and are targeted at one demographic. A film may become more successful than expected if it ends up appealing to more than the targeted demographic, like "The Hangover". Studio marketing departments like these movies because the marketing plans have a simple message and only has to find one type of audience. The other end of the spectrum is a movie that one genre aimed at all demographics, like "Avatar" which was an action film aimed at everyone. The trouble happens when audiences can't tell if a movie is a horror film or a drama. It muddles the marketing strategy and can end up attracting none of the intended demographics, instead of both of them.

This discussion of marketing is relevent to filmmakers when you are writing or selecting your screenplay because the end goal is always to get a big theatrical distribution. Sometimes, you may need to market or distribute a film yourself. Some film budgets even include a line item for marketing and distribution. In deciding how to spend this marketing and distribution funds, you will realize why you can't market your film to everybody and should focus on one demographic like college guys or children or dating couples.

Check QuickFilmBudget.com for a sample film budget.

Avatar Budget

The New York Times reported that the budget for the James Cameron film Avatar is approximately $500 million. The articles explains that it is estimated to actually cost $300 million to produce the film, and approximately $150 million is attributed to Fox's plan to spend on global marketing alone, with the remaining $50 million being a cushion for the cumulative costs some of the film's partners have already ponied up (such as Avatar Day, whose bill was footed mostly by IMAX).

Since this blog focuses on film budgets, let's discuss the $300 million to produce the film. Cameron is a unique filmmaker in that he usually works with actors that are not stars. Keep in mind that Cameron made Arnold Schwarzenegger a star in Terminator and then used him in other films. The same applies to Sigourney Weaver. Despite not using a star actor, the usual positive correlation between the size of the budget and the above the line costs remains intact because James Cameron is the star! He has a fan base and awareness level of his name alone that rivals most major movie stars. I wonder if any star actors offered their services below their quote just to work with Cameron.

Whether you liked Avatar or not, audiences were treated to a glimpse of the future of cinema as Cameron introduced them to cutting edge digital and 3D technology.