Cinema Advertising Council Membership Reports 15% Increase in Cinema Ad Spending for 2006

Growth Driven by Automotive, Entertainment/Media, Consumer Electronics, Telecom, Financial Services, Educational Institutions and Government/Military Categories

October 22, 2007
"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"

The Cinema Advertising Council (CAC), today unveiled its 2006 report on cinema advertising revenues. According to the association’s report, cinema advertising industry revenues of CAC membership grew by 15 percent to $455,661,000 in 2006 as compared to a total of $394,830,000 in 2005. Cinema remains among the fastest-growing advertising mediums for 2006. The announcement of the report – which was independently tabulated by Miller, Kaplan, Arase & Co. LLP – was made today by Clifford E. Marks, president and chairman of the CAC.

“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,” said Mr. Marks. He added “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.”

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 derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions. According to the report, on-screen advertising revenues increased 15 percent 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 percent increase from $33,232,000 in 2005. CAC members account for more than 81 percent of U.S. movie screens.

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 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.

Mr. 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.

About The Cinema Advertising Council (CAC)

Established in 2003, the Cinema Advertising Council (http://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 over 81 percent* of U.S. cinema screens based on 37,740** cinema screens, the CAC’s membership is also comprised of companies that provide services and products to the cinema advertising industry.

* CAC data source: National CineMedia and Screenvision
** Source: NATO

Contact:

The Cinema Advertising Council
Don Ciaramella, 212-986-7080
The Lippin Group/NY
don@lippingroup.com
or
Matt Biscuiti, 212-986-7080
The Lippin Group/NY
matt@lippingroup.com
or
Les Eisner, 323-965-1990
The Lippin Group/LA
leisner@lippingroup.com