Cinema Ad Revenue Jumps 18.5%

NEW YORK Cinema advertising revenue grew 18.5 percent in 2007, making the sector one of the fastest-growing among all paid media, according to the Cinema Advertising Council.

Law firm Miller, Kaplan, Arase & Co. tabulated the revenue figure, reported at $540 million in 2007, compared to $456 million in 2006. Both on-screen and off-screen revenue increased about 18.5 percent in ’07, with the former accounting for more than 90 percent of the total market, according to the CAC.

On-screen advertising includes commercials airing prior to movie previews and feature presentations. Off-screen advertising consists of audio programming, sampling, special events, concessions and lobby-based efforts.

The report noted increased activity from categories such as automotive, broadcast and cable, governmental and educational institutions, consumer packaged goods, movie studios, media, wireless, retail and telecommunications.

“Many advertisers are taking advantage of the extensive off-screen options cinema has to offer; used in tandem through integrated campaigns, on-screen advertising combined with off-screen marketing in the theater can, literally, double or triple the impact a brand can make on the movie-goer,” said Stu Ballatt, president and chairman of the CAC.