A new report from the Cinema Advertising Council (CAC) has revealed that US cinema advertising industry revenues of CAC members grew by 15% to $455,661,000 in 2006 as compared to a total of $394,830,000 in 2005.
Clifford Marks, president and chairman of CAC, said: “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.
“That said, 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’. Additionally, the incorporation of digital technology in the cinema environment has made it easier for brands to seamlessly integrate cinema into their overall advertising plans.”
According to the report, on-screen advertising revenues increased 15% 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% increase from $33,232,000 in 2005. CAC members account for more than 81% of US movie screens.
CAC said that growth in cinema advertising industry revenues in 2006 is attributable to increasing activity from advertisers across a broad spectrum of national advertising categories including: Food/Consumer Packaged Goods, Consumer Electronics, Educational Institutions, Telecom, Financial Services, Automotive, Government/Military, Internet and Entertainment/Media.
Marks noted that 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.
US spending on cinema, mobile, videogame, branded entertainment, satellite radio and custom publishing advertising will grow a projected 20.3% in 2007 and an additional 18.4% in 2008 and 18.5% in 2009, according to Jack Myers Media Business Report (see US Adspend To Grow).
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