Commentary

Catch A Commercial At The Movies

Catch A Commercial At The Movies

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According to the Cinema Advertising Council's just-released report, cinema advertising industry revenues among CAC members grew 15% to $455.7 million in 2006. CAC members account for more than 81% of US movie screens, according to the organization.

The report includes revenue data for both on-screen cinema advertising, including commercials airing in advance of movie previews and the feature presentation, and off-screen revenues, including those derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions.

According to the report:

  • On-screen advertising revenues increased 15% to $417,401,000 in 2006 from $361,598,000 in 2005
  • Off-screen revenues grew to $38,260,000 in 2006, a 15% increase from $33,232,000 in 2005

Cinema Advertising Revenue(Million Dollars)

Year

Member Revenue

% Growth Y/Y

2002

$185.8 Mil

 

2003

273.0

47%

2004

367.5

35

2005

394.8

7

2006

455.7

15

Source: Cinema Advertising Council, October 2007

Note: The CAC no longer estimates revenue for non-members or for beverage category advertising.

Other key findings according to the report:

  • Leading national advertising categories in 2006 included Automotive, Entertainment/Media (including Movie Studios, Broadcast/Cable TV and Home Video), Consumer Electronics, Telecom, Financial Services, Educational Institutions and Government/Military
  • Growth in cinema advertising revenues in 2006 is attributable to increasing activity from advertisers across a spectrum of national advertising categories, including Food/Consumer Packaged Goods, Consumer Electronics, Educational Institutions, Telecom, Financial Services, Automotive, Government/Military, Internet and Entertainment/Media
  • Cinema advertising in 2006 was buoyed by revenue growth in regional and local advertising. These categories include Real Estate, Automotive Dealers/Manufacturers, Healthcare Professionals/Services and Restaurants.

For additional information, please visit Marketingcharts here.

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