National Cinemedia Runs 3D Ads

In-theater advertising company National Cinemedia said it will run four 3D ads in 2010 and possibly more. The company said it has run two already -- including a Samsung spot starting in April -- and has two more booked.

NC also said it is in advanced discussions with other potential third-dimension advertisers. The ads come as TV networks increase 3D programming in the home and are looking to fill their inventory with spots in the format.

CEO Kurt Hall said on an earnings call Tuesday: "Clearly, we're getting a meaningful premium" from marketers running the third-dimension spots, but declined to offer specifics.

National Cinemedia saw about an 8% gain in ad dollars in the April-July period as it added 18 first-time clients. But Hall said the company has a client base of only about 100 national advertisers, giving the sales team "a lot of fertile ground."

The new clients came in categories such as automotive, insurance, video games, and somewhat surprisingly, print media.

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National Cinemedia benefited in the second quarter as inventory tightened in the national TV scatter marketplace. Hall said "media buyers looked for alternatives for broadcast overflow."

This fall, National Cinemedia may struggle if big-spending clients' budgets are taxed because they committed heavily in the TV upfront market this summer.

Ad revenue in the second quarter for the company was up 7.9% to $90.1 million. National Cinemedia said CPMs rose about 7%. Profit fell to $4.6 million from $7.1 million a year ago.

The company has about 17,100 screens in about 172 markets.

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