U.S. cinema advertising revenues grow in 2010 despite lingering softness
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The cinema advertising industry across the United States has registered a 12.7 percent growth in 2010 despite the continued softness among other traditional media as the country is still mired in the economic crisis, a trade association said in a report which was published on Monday.
Total revenues from the members of the Cinema Advertising Council (CAC) was tallied to be 658.3 million U.S. dollars, as compared to a total of 584.1 million dollars in 2009, CAC, a non- profit trade association said in a report. The CAC members account for 35,798, or more than 90 percent of the U.S. movie screens.
"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," said CAC President and Chairman Cliff Marks. "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."
The CAC statistics consists of 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 which include those delivered by lobby digital video and audio programming, sampling, special events, concession- based promotions and other lobby-based promotions.
On-screen revenues, which accounted for 91.5 percent of total cinema advertising revenues, were up 10.8 percent year over year, while off-screen revenue, accounting for 8.5 percent of total cinema spending, was up 38.4 percent, the New York-based CAC said.
The fresh growth was buoyed mainly by increasing activity across a broad spectrum of emerging categories which include confection & snacks,electronics, insurance, luxury goods, pharma, spirits, technology, toys & games and travel & tourism, the trade group concluded.
Auto, electronics, entertainment, financial, communications, consumer packaged goods, health & beauty, soft drinks, military and video games were named by CAC as top national cinema advertising categories.
