Cinema Advertising Grew by almost Six Percent in 2008

Bookmark and Share

Sun, 06/28/2009 - 20:00 -- Nick Dager

According to new Cinema Advertising Council report total cinema advertising industry revenues of CAC members – which account for more than 82 percent of U.S. movie screens – grew by 5.8 percent to $571 421 000 in 2008 as compared to a total of $539 946 000 in 2007.   The announcement of the report – which was independently tabulated by Miller Kaplan Arase & Company – was made today by Dave Kupiec president and chairman of the CAC. 
 Cinema advertising grew despite a year that saw spending in other traditional media decrease significantly.  Meanwhile since 2002 – the first year that cinema ad revenue was measured by the CAC – spending in this medium has increased for six consecutive years with an average of 21.5 percent per year and 2008 spending reaching a total that is 208 percent higher than spending in 2002.  
  “Marketers’ desire for engagement impact and ROI is stronger than ever and they are turning to cinema in increasing numbers ” says Kupiec.  “Cinema is now a regular part of national regional and local media buys – no longer just used primarily for campaign launches or special events – and in addition to spending increases we are seeing a substantial rise in the number of national buyers as compared with previous years.  Additionally with the box office and admissions up in 2009 the strength of the medium has never been more evident.” 
 The CAC report includes revenue data for both on-screen cinema advertising – including commercials airing in advance of movie previews and the feature presentation – as well as off-screen revenues – including those derived from audio programming sampling special events concession-based promotions and lobby-based promotions.   On-screen revenues accounted for over 90 percent of total cinema advertising revenues.  Additionally approximately 76.53 percent of total revenue is from national or regional advertisers (versus 23.47 percent from local sales).  
  Top national cinema advertising categories in 2008 included Associations & Causes Automotive Broadcast & Cable Television Consumer Electronics Consumer Packaged Goods/Health & Beauty Credit Cards Fashion Military Movie Studios Retail Telecommunications and Wireless.  
Additionally growth in 2008 was attributable to increasing activity across a broad spectrum of emerging categories from CPG/Health & Beauty to Media Retail Electronics Leisure/Tourism and Financial Institutions.  
 “Cinema advertising spending continues to grow and advertisers are seeing real results as they increasingly find ways to include cinema as part of their overall media mix along with other sight sound and motion buys such as television ” says Kupiec.  “In fact as a recent cinema advertising study conducted by Integrated Media Measurement showed combining television and cinema in an ad campaign more than doubled the consumer conversion rate as compared to television alone while doubling the lift and extending incremental reach all the while targeting key demographics including ad-avoiders. These are the results media agencies and their clients crave and cinema continues to be a growing powerful medium.” 
 Cinema Advertising Council