The allure of dazzling gowns and the allure of celebrity converge in a spectacular display as the streets near the Dolby Theatre evolve into a grand catwalk for the Oscars.

However, the red carpet is more than a mere photographic moment or a fashion statement.

“It’s one of the most significant marketing platforms available,” explained Liza Soluti, co-founder and chief communications officer of Shadow.

This promotional effort kicks off well in advance, long before the first Louboutin graces the red carpet.

“There are numerous contracts parading up and down that red carpet,” noted industry expert Joe Zee.

Zee and Soluti emphasize that the red carpet supports a vast industry that remains largely unseen by the general public.

“It’s become a real business opportunity for brands,” Soluti said.

According to Zee, a dress walking down the red carpet could be worth anywhere from $150,000 to $0.5 million.

So, where does an Oscar look even begin? Well, it all depends.

“You are contracted to wear ‘x’ on the carpet, and the celebrity will be paid ‘x’ amount of money,” Zee said.

Soluti adds that talent is spending a ton of time meeting with their teams to dream up different looks.

“So there is this whole kind of dream being built, you know, around this one person that’s going to step out on the red carpet and create a lot of conversation and momentum.

Momentum that can be turned into money, big money, for more than just the stars and their designers, but that’s wasn’t always the case.

“Designers, you know in Paris, London and Milan really felt this was very low class to dress celebrities on the red carpet,” Zee said.

“It wasn’t until 1997, when Nicole Kidman stepped out on the red carpet wearing Galliano for Dior runway look.”

That was the first time a runway look was actually worn on the red carpet. The payoff was enormous.

“That changed the game,” Zee said.

“Designers in Europe start to break down and say, look at what the business capabilities of this could be. After that, everything exploded.”

That explosion was just the beginning.

“Social media honestly played the biggest role in transforming the impact that the Oscars can have,” Soluti said.

Last year alone, the Oscars generated over $1 billion worth of impressions just from social media alone.

“Talent wears it on the carpet, think about the headlines you’re generating. They’re going to seek out the make-up artist,” Soluti said. “You’ve got billions of posts about it where people are dissecting their looks and the photos and the moments.”

So, when the red carpet cameras start flashing on Sunday, it’s the culmination of big business and a moment etched in time that will live on long after the Oscar stage goes dark.

Don’t miss Hollywood’s biggest night: The Oscars on ABC!

Our live Oscar pre-show, “On The Red Carpet at the Oscars,” begins at 3:30 p.m. ET/12:30 p.m. PT and will feature live interviews with the nominees, red carpet fashion analysis and more!Watch the 98th Academy Awards, hosted by Conan O’Brien, on March 15 at 7 p.m. ET/4 p.m. PT on ABC and Hulu, followed by “The Bachelorette: Before the First Rose.”Check your local listings or stream on Hulu and OnTheRedCarpet.com.