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Insight of the Day: Cinema driving experience economy

Summary of Key Points:

  • Europeans love cinema: Nearly half of Europeans are happiest watching a film at the cinema, valuing the unique experiences it offers.

  • Cinema boosts the local economy: The release of popular films like Deadpool & Wolverine and events like the Cannes Film Festival lead to significant increases in spending at nearby restaurants and bars.

  • Experience economy is thriving: Cinema's popularity reflects a broader trend in Europe towards spending on experiences, with card spending on experiences increasing to 22% in the first half of 2024.

  • Mastercard's role: Mastercard is actively supporting the experience economy through sponsorships and initiatives aimed at providing 'Priceless Experiences' to its customers.

Key Takeaway:

The passion for cinema in Europe is strong, and it's driving significant economic impact. This trend is part of a broader shift towards the experience economy, where people prioritize spending on experiences over material goods.

Trend:

The rise of the experience economy in Europe, with cinema playing a significant role.

Consumer Motivation:

  • Happiness and enjoyment: Cinema provides a unique and enjoyable experience that makes people happy.

  • Unique experiences:  Attending premieres or meeting actors are seen as 'priceless' opportunities.

  • Social connection: Cinema can be a social activity, allowing people to connect with friends and family.

Driving the Trend:

  • Post-pandemic shift in priorities: People are prioritizing experiences and well-being after the pandemic.

  • Desire for unique and meaningful experiences: Consumers are seeking out experiences that offer more than just entertainment.

  • Increased accessibility to experiences: With events like film festivals and concerts, people have more opportunities to engage with their passions.

Target Audience:

  • European consumers, especially those who value experiences and are willing to spend on them

  • Film enthusiasts

  • People seeking unique and memorable experiences

Product/Service:

  • Cinema experiences (watching films, attending premieres, meeting actors)

  • Mastercard's Priceless Experiences platform

Age of Target Consumers:

  • The data doesn't specify age groups, but the trend towards experiences suggests a broad appeal across various age groups.

Conclusions:

  • Cinema is a powerful driver of the experience economy in Europe.

  • Brands and businesses should focus on providing unique and meaningful experiences to connect with consumers.

  • Mastercard's focus on Priceless Experiences positions them well to capitalize on this trend.

Implications for Brands:

  • Focus on experiences: Shift marketing and product strategies to emphasize the experiences associated with their offerings.

  • Partner with events and experiences: Collaborate with events like film festivals or concerts to offer unique experiences to customers.

  • Create personalized experiences: Tailor experiences to individual preferences and passions to create lasting memories.

Implications for Society:

  • Boosting local economies: The experience economy can drive spending and create jobs in local communities.

  • Enhancing well-being: Experiences contribute to overall well-being and happiness.

  • Fostering cultural engagement: Experiences like cinema can promote cultural appreciation and understanding.

Big Trend Implied:

The growing importance of the experience economy and the shift in consumer priorities towards experiences over material possessions.

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