Portada interviewed Lee Bernstein, President of LPB Networks. Bernstein has interesting views about the evolution of the Cinema Advertising Market in Latin America. Lee told Portada that “Cinema is a media outlet for advertisers in the market to complement and leverage their media campaigns. The media market should be headed towards more diversification versus putting all your revenue into Pay TV. Advertisers are starting to see the benefit into expanding into new areas.”
LPB Networks, LLC (“LPB”) is an international multi-media representation company with offices in South Florida and Sao Paulo Brazil. LPB represents media opportunities globally. LPB represents Latin American media outlets for Cable TV, Digital, print, cinema, playhouses, and on the ground events.
LPB represents Euronews in the Brazilian market. In addition, it offers marketing services to Brazilian companies that seek to promote themselves outside of Brazil. It also helps Brazilian companies to market tourism destinations and services in Europe. In addition, LPB represents Eurochannel for the pan-regional market, LPB also represents local golf events in Latin America and In January 2012, LPB became the exclusive representative of Cinemark in Brazil & Mexico.
Portada: In which LatAm countries do you work? Are you planning to expand in the region?
Lee Bernstein: LPB Networks covers all countries in Latin America for pay TV and on the ground golf events. For Cinema we are working right now with Brazil and Mexico and we are looking to expand in the region.
Portada: What are the salient features of the Latin American Cinema advertising market?
Lee Bernstein: – Economic growth: Brazil is the second largest market in Latin America as it pertains to Cinema Advertising. Mexico is number one in the region. Other countries are also under development, due to their strong economic growth. In Brazil, middle class / C class is consuming more entertainment in general.(Live concerts, movies, Pay-TV etc…)
-Cinema competition: Main studios have been exploiting its local presence, investing in partnerships for local productions and also reinforcing its relationship with main exhibitors. Brazil is always on top of every movie launch worldwide, in revenues and public.
– Technology: The entire region has been working to turn analogical (35mm) to digital.
I believe Brazil will surpass Mexico in a few years. Being full digital will leverage the cinema business in Brazil, especially for ad sales and alternative content.
Portada: Could you provide us some figures about advertising investment in cinemas in Brazil and the region?
Lee Bernstein: Our industry sold 141 million dollars of tickets last year. Only Cinemark sold 41.3 million. Brazil advertising spending in 2011 was 17 Billion dollars. And the investment in Cinema advertising reached $52 Million. It is expected that the ad general market will increase 9% this year, and the cinema advertising market near 15%.
Portada: How do you think this market will evolve in the next years? What are your plans and expectations for the company?
Lee Bernstein: I think it is too early for general predictions, but our plan is to double cinema ad investment till 2016 and to achieve a higher piece of the advertising pie. On the other hand, I don’t think we have direct competitors. Nowadays, I think we have an interesting room of opportunity because broadcast and Pay-TV will help us to increase revenues. In case of Pay-TV, more subs, more reach and as a result more advertisers and new ones. We are pushing to take advantage of that because we have unique characteristics. (Segmentation + localization + 100% consumer attention).
Portada: Who are your main clients?
Lee Bernstein : Coca Cola, Ambev, Toyota, Bradesco, Itau, Unilever,Kraft, Pepsico, VW, Caixa Economica Federal,Banco do Brasil, Samsung, Vivo, Claro, Tim, Boticario,Natura, HBO Latin America, Universal Studios Orlando.
Lee started his media career in 2000 in the New York offices of Turner Broadcasting. In 2001, he was given an opportunity to move to Miami and work for Turner Broadcasting Latin America. Lee accepted the opportunity and spent the next nine years working in pan-regional advertising sales. In 2010, Lee left Turner to open his own company, LPB Networks. LPB is multi-faceted in that it is not limited to the representation of media outlets and networks but also works as a media consultant and a licensing company for new content.