U.S. Cinema Advertising Saw Double-Digit Growth in 2010

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Wed, 04/13/2011 - 20:00 -- Nick Dager

Advertising in U.S movie theatres grew by more than twelve percent in 2010 according to a new report released by the Cinema Advertising Council. According to the association’s report total cinema advertising industry revenues of CAC members – which account for more than 82 percent of U.S. movie screens – grew by 12.7 percent to $658 255 000 in 2010 as compared to a total of $584 067 000 in 2009.  The announcement of the report – which was independently tabulated by Miller Kaplan Arase & Co.  – was made today by Cliff Marks president and chairman of the CAC.  
 Cinema advertising grew despite a year that witnessed continued softness among other traditional media.  For 2010 regional and national cinema advertising sales were up 13.9 percent compared with the previous year accounting for 80.2 percent of the industry with local growing 8.2 percent year-over-year and accounting for 19.8 percent of the total cinema advertising market.
“The number of major marketers and their agency buyers and planners who have come to understand firsthand the value of the cinema audience has exponentially increased during the last five years. Finally brands are including cinema in the video arena and planning cinema as part of their media mix as we now deliver large reach as well as the ability to target niche audiences ” says Marks.  “With advances in digital and 3-D we are seeing more brands embracing cinema for its ability to leverage the power of sight sound and motion. Specifically cinema has the largest 3-D platform in the U.S. allowing brands the opportunity to do 3D advertising with mass scale and precise targeting.”  
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 delivered by digital video and audio programming sampling special events concession-based promotions and lobby-based promotions.  On-screen revenues accounted 91.5 percent of total cinema advertising revenues and were up 10.8 percent year over year while off-screen revenue (8.5 percent of total cinema spending) was up 38.4 percent.
Top national cinema advertising categories in 2010 included Auto Electronics Entertainment Financial Communications Consumer Packaged Goods Health & Beauty Soft Drinks Military and Video Games.  Additionally growth in 2010 was attributable to increasing activity across a broad spectrum of emerging categories from Confection & Snacks and Electronics to Insurance Luxury Goods Pharma Spirits Technology Toys & Games and Travel & Tourism.