National CineMedia, which operates the country’s largest cinema advertising network, reported that total revenues jumped 11.5% to $122.8 million in the second quarter of 2013. The increase was
driven by growth in advertising revenues, which increased 15.4% from $101.3 million to $116.9 million over the same period.
The increase in ad revenues more than offset lost revenues from
NCM’s discontinued Fathom Business Events division.
NCM chairman and CEO Kurt Hall attributed the positive results to increased demand for national and local advertising, new
advertising clients, an expanding network of theater affiliates, and tight cost-control measures.
Looking ahead, Hall said he expects cinema advertising to benefit from a broader economic
recovery and the “impact on the broader media marketplace of increasing DVR adoption and programming fragmentation” -- which he predicted will make the reach and engagement of cinema
advertising more attractive compared to broadcast and cable TV.
The company has been rolling out a number of new products to enable advertisers to broaden and deepen their connection
with moviegoers, including FirstLook Sync, a new mobile app that allows moviegoers to interact with advertising and other content from the big screen using their smartphones.
recently introduced a network of interactive digital displays in lobbies, courtesy of a partnership with Monster.
Abroad, in July, NCM announced a new partnership with Beijing China
Times Media Advertising Co., which will allow both companies to offer advertisers a way to reach movie audiences in the U.S. and China. The deal gives NCM access to cinema ad inventory sold by the
China Times Cinema Network, whose affiliates include Wanda Cinema Line, with 116 major cineplexes and 985 movie screens, as well as 96 other big theaters with over 600 screens around China, reaching
over 60 million moviegoers per year.
China Times’ affiliate arrangements include the only IMAX screen advertising rights in China, covering 69 IMAX screens owned by the Wanda