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Cinema Advertising Grew 15 Percent in 2006

The Cinema Advertising Council‘s 2006 report on cinema advertising revenues revealed that cinema advertising industry revenues of CAC membership grew by 15 percent to $455,661,000 in 2006 as compared to a total of $394,830,000 in 2005. 

Cinema advertising remains among the fastest-growing advertising mediums for 2006.

Clifford E. Marks, president and chairman of the CAC, says the growth can be attributed to the fact that marketers are looking for new, highly-effective, targeted opportunities to engage harder-to-reach consumer audiences that are increasingly migrating away from traditional media platforms.

“CAC membership is seeing that a majority of these marketers who were only experimenting with cinema three or four years ago are now demanding that their agencies make our industry’s platform a ‘must buy,’” he says. He adds that the incorporation of digital technology in the cinema environment has made it easier for brands to integrate cinema into their overall advertising plans.

The CAC report includes revenue data for 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. 

According to the report, on-screen advertising revenues increased 15 percent to $417,401,000 in 2006 from $361,598,000 in 2005, and off-screen revenues grew to $38,260,000 in 2006, a 15 percent increase from $33,232,000 in 2005.

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. 

Cinema advertising’s growth in 2006 was also buoyed by revenue growth in regional and local advertising.  Leading regional and local advertising categories include: Real Estate, Automotive Dealers/Manufacturers, Healthcare Professionals/Services and Restaurants. 

CAC members account for more than 81 percent of

U.S.

movie screens.

Related categories: Outdoor, Signs of What's to Come, Branding, Media Planning, Entertainment

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