US Cinema Ad Spending Up 15%

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Broadcast & Cable | Financial Services | Media & Entertainment | Out-of-Home | Pharma & Healthcare | Real Estate | Telecom

Cinema advertising industry revenues among Cinema Advertising Council (CAC) members grew 15% to $455.7 million in 2006, from $394.8 million in 2005, according to (pdf) the CAC’s just-released 2006 report on cinema advertising revenues. CAC members account for more than 81% of US movie screens, according to the organization.

The CAC report includes revenue data for both on-screen cinema advertising (including commercials airing in advance of movie previews and the feature presentation) and off-screen revenues (including those derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions).

cac-cinema-advertising-revenue-2002-2006.jpg

According to the report:

  • On-screen advertising revenues increased 15% to $417,401,000 in 2006 from $361,598,000 in 2005.
  • Off-screen revenues grew to $38,260,000 in 2006, a 15% increase from $33,232,000 in 2005.

Also according to the report:

  • 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.
  • Growth in cinema advertising revenues in 2006 is attributable to increasing activity from advertisers across a spectrum of national advertising categories: Food/Consumer Packaged Goods, Consumer Electronics, Educational Institutions, Telecom, Financial Services, Automotive, Government/Military, Internet and Entertainment/Media.
  • Cinema advertising 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.

About the study: Revenue data is independently collected and tabulated by Miller, Kaplan, Arase & Co. LLP. In 2007, CAC members account for more than 81 percent of US movie screens. The CAC no longer estimates revenue for non-members or for beverage category advertising.

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