Branding Lifts Hollywood, Tradeshows

There's no denying it. Blockbuster film budgets have reached historic proportions while box office figures have been lackluster (especially this summer). So, where do Hollywood studios turn to stay out of the red? Licensing.

Corporate America is also increasingly focusing on licensing opportunities, further strengthening the tradeshows that cater to the $173 billion worldwide business, a figure calculated by the Intl. Licensing Industry Merchandisers' Assn.

The largest global licensing show, Advanstar Communications' annual L!CENSING Intl., this year marked its 25th anniversary and posted a record attendance of 23,000, 15 percent more than 2004.

The show takes place each June at New York's Jacob K. Javits Convention Center, and is considered a must-attend event where consumer product manufacturers, licensees, retailers and marketers go to secure intellectual property rights and forge merchandising and promotional partnerships.

Michael Alic, general manager of Advanstar's licensing group, said the 195,000 square foot show has benefited from the fact that licensing is "a really deeply engrained part of people's business now." He added, "It used to be that licensing was a very secondary activity for a lot of companies."

LIMA, which also sponsors the show, noted on its Web site, "The availability of licensed merchandise has proliferated over the last decade, and corporate America has finally recognized the value of its brand names developed over decades."

Because of the thriving market, L!CENSING Intl. has steadily climbed the ranks of the Tradeshow Week 200, from No. 186 for its 2002 edition, to No. 160 in 2003 and to No. 133 for the 2004 show.

Alic credits the show's dynamic growth to Advanstar's expanded marketing efforts and diversified exhibitor range. "The exhibitor scope has broadened out and retailers have broadened as well," he said.

Plus, Alic noted, in the entertainment industry these days, "You start thinking about the licensing program the minute you green light the film."

The studio showcased its Looney Tunes character, Tweety Bird, along with many of its other properties, in two 3,000 sq. ft. booths at the last L!CENSING Intl.

LIMA board member Karen McTier, executive vice president of domestic licensing, global toys, publishing and themed entertainment for Warner Bros. Consumer Products, called the show "a great showcase."

However, McTier added, "Entertainment licensing has been strong for a long time, because these movies are getting more and more expensive to make, and the talent deals are richer. When you're a public company, you have to look at other avenues for revenue."

And the rest of corporate America is expanding its licensing ventures, according to Beth Schlansky, CEO of the brand licensing agency Leveraged Marketing Corp. of America.

As a L!CENSING Intl. exhibitor with a 400 sq. ft. booth, LMCA represents Fortune 500 firms like Kodak and Westinghouse Electric, "creating opportunities for brands to be linked with manufacturers and services," said Schlansky, who is also a LIMA board member. "The opportunities (at the show) for a Fortune 500 company to develop into businesses and markets that it isn't currently in are extremely valuable."

Warner Bros. recently had a presence at another Advanstar show, MAGIC Marketplace Aug. 29–Sept. 1 in Las Vegas. The studio had two displays in the Las Vegas Convention Center lobby — showcasing Tweety and television's "The OC" — to support its 30 licensees, which all had booths at the show. Warner Bros.' efforts have been fruitful lately, with famous Los Angeles retailer Kitson selling everything from Tweety T-shirts to flip flops.

L!CENSING Intl. had displays at the MAGIC show. Advanstar's licensing group for the first time organized the LINK Licensing Conference, along with a luncheon for members of MAGIC's licensing community.

The licensing group also recently expanded deals with MAGIC and fellow Javits show, American Intl. TOY FAIR. These deals, Alic said, often include rights to distribute publications and/or have a booth at the shows. "What they get out of it from us is exposure to a broader universe," he said.

Other LIMA-sponsored licensing shows are also growing, said Jennifer Coleman, a spokeswoman for the group. These shows include the recent Licensing Forum Munich Sept. 21–22 and three upcoming shows — Licensing Asia Oct. 12–14 in Tokyo; Shanghai Intl. Licensing Show Oct. 19–22 in Shanghai, China; and Advanstar's Brand Licensing Europe Oct. 25–26 in London.