The Cinema Advertising Council (CAC), a national non-profit trade association which serves cinema advertising sellers, the theatrical exhibition community and the advertising community, today unveiled its 2010 report on cinema advertising revenues. According to the association’s report, total cinema advertising industry revenues of CAC members – which account for more than 90 percent of U.S. movie screens – grew by 12.7 percent to $658,255,000 in 2010, as compared to a total of $584,067,000 in 2009. The announcement of the report – which was independently tabulated by Miller, Kaplan, Arase & Co. LLP – was made today by Cliff Marks, president and chairman of the CAC.
Cinema advertising grew despite a year that witnessed continued softness among other traditional media. For 2010 regional and national cinema advertising sales were up 13.9 percent compared with the previous year, accounting for 80.2 percent of the industry, with local growing 8.2 percent year-over-year and accounting for 19.8 percent of the total cinema advertising market.
“2010 saw a significant increase in the number of major marketers and their agency buyers and planners who have come to understand firsthand the value of the cinema audience. More and more, brands are planning cinema as an integral part of their media mix in order to reach younger demographics and light TV viewers,” said Mr. Marks. “Advances in digital technology have made cinema a national sight-sound-and-motion network with the ability to also target niche audiences with ease. Not only that, but the new digital projection systems also make cinema the largest 3-D platform in the U.S., giving brands the opportunity to present 3-D advertising alongside the awesome content of 3-D feature films on a mass scale.”
The CAC report includes revenue data for both on-screen cinema advertising – including commercials airing in advance of movie previews and the feature presentation – as well as off-screen revenues – including those delivered by lobby digital video and audio programming, sampling, concession-based promotions and other lobby-based promotions. On-screen revenues accounted 91.5 percent of total cinema advertising revenues and were up 10.8 percent year over year, while off-screen revenue (8.5 percent of total cinema spending) was up 38.4 percent.
Top national cinema advertising categories in 2010 included Auto, Electronics, Entertainment, Financial, Communications, Consumer Packaged Goods, Health & Beauty, Soft Drinks, Military and Video Games. Additionally, growth in 2010 was attributable to increasing activity across a broad spectrum of emerging categories, from Confection & Snacks and Electronics to Insurance, Luxury Goods, Pharma, Spirits, Technology, Toys & Games and Travel & Tourism.
About The Cinema Advertising Council (CAC)
Established in 2003, the Cinema Advertising Council (www.cinemaadcouncil.org) is a national non-profit trade association which serves cinema advertising sellers, the theatrical exhibition community and the advertising community, acting as a central source of information for the industry. In addition to representing cinema advertising companies that account for 35,798 U.S. cinema screens, or over 90 percent* of U.S. cinema screens based on 39,547** cinema screens, the CAC’s membership is also comprised of companies that provide services and products to the cinema advertising industry.
Since 2002 – the first year that cinema ad revenue was measured by the CAC – spending in this medium has increased for eight consecutive years, with an average of 17.9 percent per year. Annual revenue figures reported by the CAC reflect minor adjustments based on factors such as changes in association membership and industry consolidation.
* CAC data source: National CineMedia and Screenvision
** Source: MPAA
