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Digital In-Theater Ad Spending Grows

It's summer blockbuster—and incremental revenue—season.

There is a reason moviegoers now get ads with their popcorn, before the previews and on bathroom speakers: Those ads are lucrative. Revenues from ads that play at movie theaters are increasing, according to the Cinema Advertising Council (CAC).

The professional association said that such ads, combined with off-screen theater impressions, brought in nearly $540 million in 2007 for member theaters, up from nearly $456 million in 2006. On-screen ads accounted for about 92% of total cinema advertising revenues in 2006. CAC members make up about 82% of US movie screens, the group said.

On-screen cinema advertising includes commercials shown before movie previews and feature presentations, while off-screen revenues include those from audio programming, sampling, special events, concession promotions and lobby-based promotions.

Concession-area marketing revenues jumped 48% in 2007, while revenues from in-lobby and in-auditorium audio programming more than doubled, and in-lobby sampling program revenues nearly quadrupled. Almost three-quarters of in-theater ad revenues come from national or regional advertisers.

Read more - eMarketer

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