Cinema Ad Revenue Up 15 Percent

NEW YORK Ad revenue among Cinema Advertising Council members grew 15 percent to nearly $456 million in 2006, up from $395 million in 2005, according to a CAC report released today. CAC members account for more than 81 percent of U.S. movie screens.

Miller, Kaplan, Arase & Co. determined the figures.

The report includes revenue data for both on-screen and off-screen cinema advertising. On-screen includes commercials aired prior to movie previews and feature presentations. Off-screen includes audio programming, sampling, special events, concession-based efforts and lobby promotions.

The report said on-screen advertising increased 15 percent to slightly more than $417 million in 2006, up from $362 million in 2005. Off-screen figures also rose 15 percent, to $38 million-plus in 2006, up from $33 million in 2005.

“What was a testing ground five years ago for marketers has become a very significant and important part of their annual media planning. The reason that marketers continue to come back is because the recall is incredible, the impact is big—and it works,” said Clifford Marks, chairman and president of the CAC and president of sales and marketing at National CineMedia.

The report indicated that the growth in revenue is also attributable to other types of advertisers getting into the space. These include: food and consumer packaged goods, consumer electronics, telecom, financial services and Internet and entertainment media.

Overall, automotive, entertainment, consumer electronics, telecom, financial services, education and government/military firms ranked among the leading national cinema advertisers in 2006, the survey said.