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Stronger Attachments: Cinema Advertising Impacts Emotions And Revenues
“Knock on wood,” says Michael Chico, president and chairman of the Cinema Advertising Council, with both pride and a measured dose of relief when asked about the state of the business that he represents. “We’ve not had one downturn since this whole economic crisis started. In 2008, we were up year-over-year. In terms of 2009, we’re up also. And in 2010, the industry is trending to budget, if not towards even more positive results. Knock on wood, there has been no downturn for us.”
The seven-year-old trade group of cinema advertisers that covers more than 82% of 38,794 U.S. movie screens and includes companies that provide related services and products did not yet have the official 2009 numbers available at press time—make sure to check www.filmjournal.com by mid-June—but Chico ventures that the positive trend is certainly continuing. “Overall the industry saw strong national, with regional up and local showing minimal increases.” On the global front, “we are hearing that international saw high single to low double-digit decreases, while in the U.S. revenue was up minimally.”
In his day job as executive VP, sales and marketing, at Screenvision, Chico recently spoke with Cliff Marks, president of sales and marketing at competitor NCM Media Networks, about the reasons behind such success. “The members of the CAC have been doing a very, very good job knocking on advertisers’ doors and presenting the positive attributes of cinema,” Chico says of their analysis. “We’ve been doing the same at the agency level and it’s just been working. The positive press that we have been getting in terms of admissions and the movies that are being released is obviously helping us. It’s like wind at our backs, but marketing cinema as a whole has been working really well for us.”
Along “with the bigger boost in box office, 3D technology as a whole just lifted the industry in terms of awareness,” he elaborates. “My kids and I have seen a whole slew of 3D films and have enjoyed every one of them.” From an advertising perspective also, “it’s been working well and is obviously a boost for moviegoing audiences overall.”
Chico prefers to leave the technical aspects to the experts in the field, but simply put, “it’s a flash drive that ships to the digital projectors.” Screenvision and NCM completed a handful of media attention-worthy 3D campaigns already featuring spots from ABC’s “Prep and Landing,” Skittles, U.S. Air Force, Samsung and Friskies. Cat food? “Yes, it was very, very well-done,” Chico confirms about the spot that was appropriately taglined “Feed the Senses” and fittingly placed with Alice in Wonderland.
Beyond the movie theatre, Friskies and the new batch of 3D commercials made waves in the advertising trade press as well. “In the past three months, we’ve seen more interest from advertisers than you can humanly imagine,” NCM’s Marks noted to Adweek. “We all have to agree that Avatar has changed the world.” Not to mention the Monster vs. Aliens that are currently promoting Samsung’s 3D television sets. “It shows a young girl taking the 3D movie experience home by cutting a cube of the action out of the screen,” Adweek wrote, “and replicating the experience on her family’s Samsung TV”—highlighting where the excitement all begins. “3D is here to stay, and consumers love it,” Marks is further quoted. “It is one of the most exciting opportunities to come our way in cinema in a long time…”
Back to the flat-screens, Chico offers an additional trend line that he observes at Screenvision. “We’ve gotten a lot of traction with our in-lobby Cinema Scene products. The lobbies will be playing a much more prevalent role in our future revenue stream,” he anticipates.
On the same note, Nielsen just reported huge numbers for such location-based video media. According to the researcher’s inaugural Fourth Screen Report, an estimated 237 million on-location ads were displayed each month from September to December 2009, including at health clubs, bars and restaurants, gas stations, in hotels and movie theatre lobbies. In comparison to the other three screens of television, Internet and mobile devices, the Report states that “video ad exposures to NCM’s and Screenvision’s movie theatre networks combined for an average 61.7 million, meaning that it took about 20 primetime [television] ads to reach the same audience.” In fact, NCM and Screenvision led the on-location pack at numbers one—before elevators and fitness—and four, with 35.3 and 26.4 million exposures, respectively.
More good news comes from a second independent study that gives equally high marks to cinema advertising. “Consumers are highly attached to the movies and they went to the cinema in record numbers,” confirms Gary Reisman, principal at NewMediaMetrics (NMM), a company that offers a patent-protected approach to measuring Emotional Attachment (EA) of consumers to brands and media properties. “Our study shows that movies are a powerful part of the media mix and an excellent way for brands in key categories to connect with customers.”
NewMediaMetrics’ EA scale represents “the research system that a lot of the networks use to determine the emotional attachment that their prospective audiences have for the new shows they are watching,” explains Chico. “A lot of money is placed on that bet of which shows to launch.”
Chico and colleagues liked what they saw in the NMM presentation. “This is a great CAC initiative because…who doesn’t like the movies?! We ran the numbers and, lo and behold, they were phenomenal,” he says. “Our average recall outside of emotional attachment is somewhere between 40% and 75%. That’s very, very high already. If you put emotional attachment on top of that, you can see how our audiences are perceptive and receptive to the ads that are running.” All in all, “this is probably the highest that’s achievable in the media business.”
For levels within the media mix, too, the movies have a higher EA rating (41.5%) than watching major televised sports and entertainment events (see graph). 44.5% of health and beauty customers and 43.9% of those purchasing consumer packaged goods and foods are emotionally attached to the movies, compared with 29.6% and 28.9% for television, 21.2% and 20.5% for radio, and 20.6% and 19.2% for magazines. It comes as no surprise then that these and “many, many more categories are breaking into cinema.”
Chico mentions another few that “are just turning into big, big” opportunities. “The categories that we predicted would be breaking are breaking. And that is why this year is shaping up to be very, very positive so far.” Both the domestic and imported auto segments are “growing like crazy,” and electronics and quick-service restaurants display “tremendous growth” as well.
In closing, the CAC chairman and president lauds the increased quality of cinema advertising as well. “When somebody is launching great creative, they’ll do so in cinema. I’d say 70% of our ads now are just the best creative that is used everywhere.” Although Chico doesn’t think “folks are building too many creatives just for the cinema,” he would venture “the percentages are high for both launching their best creative and using their best creative in cinema.”
The 360 About NewMediaMetrics
NewMediaMetrics’ 360 Cross Platform Study is a syndicated industry-wide study that helps marketers identify consumers who are emotionally attached to measured brands and then creates the optimal strategic messaging and media mix in order to reach these targets. The 2009 study commissioned by CAC had a base of over 3,000 persons 13 to 54 who ranked their EA (Emotional Attachment) to brands and media on an 11-point scale (where 9 or 10 = “Emotionally Attached”). Media measured included television, magazines, newspapers, the Internet, radio, cinema and non-cinema out-of-home (OOH) media.
GROSS MONTHLY DIGITAL VIDEO AD EXPOSURES, P18+
(September-December 2009)
Rank, Network, Venue, Persons 18+, % 18-34
1 NCM Movie Theatres 35,301,188 47%
2 Captivate Elevators 31,332,148 55%
3 Zoom Fitness Health Clubs 29,396,229 43%
4 Screenvision Movie Theatres 26,390,071 47%
5 Zoom Social Bar/Restaurants 25,165,269 84%
6 AMI Bar/Restaurants 22,609,400 53%
7 The Hotel Networks Hotels 22,196,922 34%
8 GSTV Gas Stations 21,306,028 44%
9 indoorDirect Restaurants 14,146,853 43%
10 RMG Fitness Health Clubs 9,548,019 35%
TOTAL: 237,392,127 50%
Source: The Nielsen Company
Big-Screen Ads Engage Consumer Emotions
You know those ads on movie screens prior to the Coming Attractions and the Feature Presentation? Turns out they have more of an impact that many of us thought. A new report from the Cinema Advertising Council (CAC) found that ads at the cinema engage consumers' emotional responses, always a good thing.
The NewMediaMetrics 360 Cross Platform Study found:
• 44% consumers who purchases health and beauty products were emotionally attached to movies
• 29% of health and beauty purchasers were attached to television
• 43% of CPG consumers were attached to movies
• 28% were attached to television
• 43% of Casual Dining consumers were attached to movies
• 28% were attached to television
"Over the past 10 years, Emotional Attachment has been proven to be a predictive means of measuring consumer product purchasing and media behavior," said Gary Reisman, NewMediaMetrics principle. "On a brand by brand basis, different media are more effective at reaching a brand's high-value targets. Consumers are highly attached to the movies and they went to the cinema in record numbers in 2009. Our study shows that movies are a powerful part of the media mix and an excellent way for brands in key categories to connect with customers."
Researchers studied the responses of more than 3,000 people between ages 13 and 54. They measured cinema, television, radio, magazines, Internet and 'other' out-of-home media such as billboards.
Movie Metrics: Cinema Ads Click With Viewers
A new report from the Cinema Advertising Council and NewMediaMetrics details consumers' emotional attachment to different media, as well as brands appearing in various media contexts. The findings suggest that cinema advertising can compete effectively with television for video advertising dollars.
Movies fared better than most other media in terms of emotional attachment, reflecting their immersive quality, and the fact that consumers will pay a fair amount for such an experience.
CAC found that 44.5% of consumers that buy health and beauty products reported emotional attachment to movies, versus 29.6% for magazines, 21.2% for radio and 20.6% for magazines.
Similarly, 43.9% of survey respondents that buy consumer packaged-goods and foods said they were emotionally attached to movies, compared to 28.9% for TV, 20.5% for magazines and 19.2% for magazines.
The data, summarized in CAC and NewMediaMetrics' "360 Cross Platform Study," were gathered in survey of more than 3,000 people ages 13-54, categorized by the type of products they consume. It asked them to rate emotional attachment to media and brands in media on an 11-point scale, with 9-10 considered "emotionally attached." The survey compared consumer ratings for TV, magazines, newspapers, Internet, cinema and a variety of other out-of-home channels.
Across all consumer categories, the overall attachment rating of 41.5% for movies ranked ahead of televised sports and major entertainment events, such as the Super Bowl (39.7%), Summer Olympics (26.3%), World Series (22.8%) and Oscars (16.1%).
Last year, the CAC released a study from Integrated Media Measurement showing that cinema advertising plus TV more than doubled consumer conversion rates when compared with TV alone.
The digital out-of-home industry in general has been working to bolster its measurement capabilities with new, more precise metrics in the hope of winning spending usually allocated to cable and broadcast.
Study: Attachment To Brands, Movies Co-relate
People may complain about the idea of watching advertisements before movies. But even they admit the medium commands more emotional attachment than other types of media, such as television, print and out-of-home, according to the Cinema Advertising Council (CAC).
A survey of 3,000 people between 15 and 34 conducted by the council, used an 11-point scale (0-10, with the top two responses as the highest) to rank consumers' emotional attachment (defined as something they care deeply about and were not willing to give up) to both brands and media. The findings showed that across several categories, consumers who were emotionally attached to certain brands felt the same way about movies, according to Steve Siegel, chair of the CAC's research committee.
"For a lot of key categories, [consumers] are going to be very emotionally attached to the movie-going experience," Siegel tells Marketing Daily.
According to the research, 45% of health and beauty consumers (consumers who used products in the category within six months of the study), said they were emotionally attached to movies, compared with 29.6% who felt the same way about television, 21% for radio and 21% for print advertising.
Among consumer packaged goods and food consumers, 44% were emotionally attached to the movies, while 29% had the same reaction for television, 21% for radio and 19% for magazines. Similar numbers (43%, 28%, 20% and 19%, respectively by media) followed for restaurant consumers, according to the study.
"It mixes and matches," Siegel says. "We can show that people who are emotionally attached to brands in other categories are emotionally attached to [certain] media."
The survey also found movie advertising has a higher emotional attachment rating (42%) than lived televised sports and entertainment, including the Super Bowl (40%), Summer Olympics (26%), Oscars (16%) and Grammy Awards (15%).
Cinema Advertising Council: 'Movie-Watchers Are More Attached' Trade Group Releases Study Indicating That Consumers Are More Into Film Than Any Other Platform
Consumers are more “emotionally attached” to movies than they are TV shows, newspapers or the Internet.
So says the Cinema Advertising Council, which on Tuesday released results of a 2009 study by third-party research firm NewMediaMetrics revealing that nearly 44 percent of “consumer packaged goods and foods” consumers identify themselves as emotionally attached to movies, compared to just under 29 percent for TV.
The study polled 3,000 persons ages 13-54 and asked them to rank how impacted they are by various media platforms on a “Spinal Tap”-like scale that goes from 1-11.
The study claims that 44.5 percent of health and beauty category consumers identify high emotional attachment to theatrical features (meaning they posted a 9 or higher for “movies), compared to only 29.6 percent for TV, 21.2 percent for radio and 20.6 percent for magazines.
In the fast food/casual restaurant category, movies led again, with consumers registering a 43.9 percent strong attachment to the medium.
Also of note: according to the study, the movies have a higher EA quotient (41.5 percent) than the Super Bowl (39.7 percent), the Summer Olympics (26.3 percent) or the Oscars (16.1 percent).
Of course, while the veracity of engagement metrics are difficult to confirm, the Cinema Advertising Council remains on a mission to prove itself to Madison Avenue, and those grow a fledgling revenue stream for theater chains.
In 2008, advertising revenues for CAC members grew 5.8 percent to $571.4 million, with figures for 2009 still pending.
Cinema Advertising Council Names Committee Chairs
Jan 20, 2010
-By Katy Bachman
The Cinema Advertising Council announced Wednesday (Jan. 20) new committee chairs for the two-year term running through Dec. 31, 2011.
Steve Siegal, research director for Screenvision, was elected research committee chair. Laura Adler, president of A&G Marketing Group and secretary for the CAC, was elected public relations committee chair.
The two new chairs join returning committee chairs John Missale, chief technology officer, who serves as chair of the technology committee; and Michael Sakin, senior vp of sales for Landmark Theatres, chair of the marketing committee.
Michael Chico, vp of sales and marketing for Screenvision, is the current president and chairman of the CAC.
AdweekMedia Forecast 2010 If History Is Any Guide, Things Won't Play Out The Way You Might Guess
OUT-OF-HOME
By Janet Stilson
If there's one word that characterizes the out-of-home industry in 2010, it's transformation. This year will be when a greater proportion of signs are converted into digital opportunities; a larger quantity of advertisers will see the OOH light; and the entire industry will tap new research that paints a much richer picture of the sector's value.
In general, the out-of-home industry is fairly optimistic. The downer at the end of '08, when advertiser cancellations were rife, wasn't repeated at year's end 2009. And while it's still a bit of a "hang on tight and wait for better times" situation, forecasters at Veronis Suhler Stevenson, Magna and Zenith Optimedia expect that the business will reverse course in 2010.
Overall, the year-over-year revenue decline that was experienced in 2008 and 2009 probably won't be replaced by much more than a flat scenario in 2010. Occupancy rates will go up this year, but the pricing still won't reach 2007 or 2008 levels. But greater expectations are on the horizon. Revenue will rev up in 2011 and 2012 when the category is expected to deliver single-digit annual gains, according to the three firms.
Just about everyone in the business agrees that the sector will receive tremendous momentum from new research data emanating from Traffic Audit Bureau's Eyes On service. "You'll see more advertisers start to test the [OOH] waters in order to take advantage of the targeted demographics, which they couldn't do before," says Damon Peirson, svp, director of out-of-home and local print at Zenith Optimedia, regarding Eyes On.
The service made an initial splash in 2009 and, as of Jan. 1, became the industry's primary ratings currency. By spring, most agency planning tools should be integrated into the system, and Eyes On will gain significant traction, according to Stephen Freitas, CMO of the Outdoor Advertising Association of America.
But Eyes On also presents some challenges. So far, it doesn't measure digital boards. And it will take "a year or two" to educate sales people, planners and clients about how to use it, Peirson says.
The richer data is one important reason why OOH is transitioning from a medium that's been used largely as a branding tool to one that can satisfy much more versatile advertiser goals, Peirson says. It comes at a time when OOH digital technology allows for increasingly more creative uses of the medium, such as text messaging and touch-screen interactivity, instantaneous posting of news headlines, and live feeds of events.
That versatility is prompting a greater number of ad clients to include the category in their annual budgets, says Norm Chait, Mediavest's svp, director of OOH investment and activation. "It's given us a seat at the table," Chait says. "People are being cautious, but the budgets are trending upwards."
At the same time, the number of digital boards is likely to start growing again, after slowing down in 2009. Freitas reports that there are currently about 1,800 digital billboards in the U.S., out of 450,000 total.
"The cost of technology is now low enough that companies can invest in less expensive screens," says Jack Sullivan, senior vp, OOH media at Starcom USA, in explaining why he thinks the number of digital screens will double or triple "in the near future."
Clearly, digital growth is what's driving the revenue lift for the whole sector. Veronis estimates that between 2008 and 2013, the compound annual growth rate for digital OOH will be 13.2 percent.
That compares with a scant 0.3 percent for traditional OOH in that period. Within that static-board sector, billboards are really sluggish, moving from -10.8 percent in 2009 to -2.0 percent in 2010 and +2.5 percent in 2011. The entire OOH sector is expected to clock in at 4.9 percent, according to Veronis' 2008-2013 CAGR projection. Magna puts its CAGR between 2009 and 2014 at 3.7 percent.
The future behavior of different nontraditional OOH categories will vary. In general, video advertising networks will do quite well. Veronis estimates that VANs grew 5.8 percent in 2009 over the prior year, and will steadily increase to 18.1 percent growth by 2013. Among the VANs, cinema ad networks have been quite strong over the last year and will rise even more. Zenith puts cinema growth in '09 and '10 at 5 percent, followed by 8 percent in 2011.
"Areas like QSR, packaged goods, retail, and believe it or not, auto are all fairly strong," says Michael Chico, executive vp, sales and marketing at Screenvision, and president of the Cinema Advertising Council.
Transit advertising was a little down in 2009, but it's showing signs of growth, particularly from local vendors, Peirson reports. "A lot of local money is moving away from newspapers," he explains.
Digital place-based OOH "will grow, but it's growing from nowhere," Peirson says. "If you take out Walmart and a few of the bigger networks, it still has a ways to go." The category's major problem has been scale, he adds. But several companies are consolidating or aggregating the networks, so in the largest markets, place-based is now a viable option, Peirson says.
Nondigital place-based, aka ambient, advertising is a modestly growing category, albeit a fairly small source of revenue. But mall advertising is much more promising.
"I think the malls will do well in 2010," says Peirson. "The big mall companies have built out their networks, standardized their signs and can sell national programs in 20 markets. It used to be a hodgepodge."
Mike Chico To Head Up CAC
Mike Chico has been named the new president and chairman of the Cinema Ad Council. Chico, executive vp of sales and marketing for Screenvision, succeeds Dave Kupiec, executive vp of sales and marketing for National CineMedia. Kupiec will remain a CAC officer, taking on the role of executive director.
The CAC also announced Tuesday (Oct. 6) that both Bob Brouillette, CAC treasurer and senior vp of business development for National CineMedia and Laura Adler, CAC secretary and president of A & G Marketing Group, will remain in their roles.
Established in 2003, the CAC has grown up with a medium that continues to attract advertisers despite the economic slowdown that has plagued every other medium. Coming off double-digit growth in 2007, cinema advertising still managed to increase 5.8 percent to $571.4 million in 2008. Most forecasts call for positive growth in 2009. Among the most bullish is Zenith Optimedia, which is calling for a 15 percent increase.
In addition to providing an alternative to network TV advertisers during the upfront, cinema advertising has also embraced new technology to offer integrated campaigns that tie-in lobby advertising, mobile components, scanner technology, and Web sites.
“The whole space is maturing. It’s a good time to raise the visibility of the CAC,” said Chico, who wants to champion a stronger dialog between the medium and its advertisers. “I’d like to get a little closer to clients and agencies and find out what we should do to grow the business. How do we raise the tide?”
That could mean more standardized research and measurement. “Both companies have independent methodologies for research,” Chico noted.
As fourth quarter nears, seasonally the best quarter for cinema, business is picking up. “We will reach sell-out very shortly,” Chico said.
Both Screenvision and National CineMedia are busy laying in annual deals for next year, a process that will lock-in about 30 to 40 percent of the business by the end of the year. “Deals will be north of where they were last year,” Chico said. “So 2010 is looking healthy.”
Betting On Cinemas In Troubled Times
The economic outlook continues to be filled with dark clouds, but more evidence surfaced in recent weeks that movie exhibition is weathering the storm better than most businesses.
The blockbuster numbers for Transformers: Revenge of the Fallen, which crossed the $300 million mark in a brisk 13 days, boosted the stocks of the three biggest publicly traded theatre circuits, Carmike, Regal and Cinemark, while shares in Imax rose 19% in the days following the action spectacle’s premiere.
At the end of June, Merriman Curhan Ford analyst Eric Wold changed his recommendation on Regal shares from “neutral” to “buy,” and advised investors to buy Carmike and Imax stocks.
“Any investor concerns heading into quarter-end can be alleviated and investors can build positions in the coming weeks into what we believe will be strong second-quarter results and third-quarter outlooks from the theater exhibition group," Wold stated on June 30.
At press time, Harry Potter and the Half-Blood Prince, Jerry Bruckheimer’s 3D family film G-Force, and the promising comedies The Ugly Truth, Julie & Julia and Judd Apatow’s Funny People were still on the horizon. Harry Potter alone should ensure an extremely robust July box office.
Meanwhile, revenue from advertising in U.S. cinemas had its slowest gain in the seven years these numbers have been tallied, but the 5.8% rise in 2008 still represents something positive.
“Media has seen such huge slippage—with audiences and advertisers both leaving—that to have a medium with growth is significant," Cinema Advertising Council president and chairman David Kupiec declared. (The CAC derives its statistics from member theatres, which account for 82% of U.S. screens.)
Kupiec said theatres are closing more ad deals this year, but because of the weak economy, they are smaller in size. The good, sustaining news for theatre owners is that advertisers pay a premium on a CPM basis for cinema advertising compared with television—about twice the going TV cost—because the recall rate is as much as five times greater, according to Kupiec.
The benefits of onscreen advertising are yet another reason why cinemas are a smart bet in this struggling economy—for advertisers, investors, and a public longing for relatively inexpensive but often spectacular entertainment.
A World Digital Forecast
A new digital-cinema briefing by London-based film-analysis specialist Dodona Research predicts that roughly 20% of the world’s cinema screens will be converted to digital projection by 2012, driven by the new wave of 3D film releases.
Nearly 12,000 screens have converted to digital projection worldwide out of a total of around 110,000 globally. The research predicts that 18,000 screens are expected to have converted to digital projection by the end of 2009. Currently, 5,000 screens worldwide have 3D capabilities, a number expected to double by the end of 2009, according to Dodona.
Beyond the one-fifth of screens switching to digital by 2012, the timetable for converting the remaining 80% remains murky due to the world economic crisis.
"Cinema owners still find it hard to justify replacing their 35mm projectors with more expensive digital equipment," the report noted, citing difficulties with finding a payment model to support conversion and "tougher financing terms since the onset of the banking crisis last year" as issues that have made the challenge "doubly difficult."
But recent news shows the digital transition continuing its momentum. The U.K. Film Council in early July announced the launch of a 1.2 million euro ($1.9 million) three-year pilot scheme to bring digital-cinema equipment to more rural areas. Distribution and exhibition fund chief Pete Buckingham stated, "This new pilot scheme will bring a top-quality cinema experience to the three pilot areas, so that people can enjoy the wide range of films on offer in urban areas, right on their doorstep.”
Meanwhile, in Norway, Film & Kino, the Norwegian interest organization for cinemas, is launching an initiative billed as the world’s first non-commercial, complete national digital rollout, with agreements with 20th Century Fox, United International Pictures (the local distributor for Paramount Pictures and Universal Pictures in Norway), Walt Disney Studios Motion Pictures International, and Warner Bros. Pictures International. The rollout, beginning in late 2009, will transform all of Norway’s cinemas, big and small, to modern DCI-compliant digital-cinema houses.
“This is a great undertaking for a small country”, said Jorgen Stensland, director of consultants at Film & Kino. “Under these agreements, Disney, Fox, Paramount, Universal, and Warner have committed to deliver wide releases to Norwegian digital cinemas. The deal also covers our own mobile cinema in rural areas… We are happy that Norwegians will be able to experience the perfect quality of a DCI-compliant digital exhibition, which will also give our audiences the opportunity to see the new generation of 3D films that are underway.”
Here’s hoping other countries follow the bold and forward-looking example of these pioneers in Norway.
Vindication for Pixar’s Up
It’s no secret that we at Film Journal International are fans of Pixar and their amazing run of ten critical and commercial successes. And so it was particularly gratifying to see Wall Street analyst Richard Greenfield admit that he was “dead wrong” when he predicted that Disney and Pixar’s Up would face a rocky box-office road, largely because of its gruff senior-citizen lead character and the lack of obvious merchandising hooks. What Greeenfield didn’t factor into his equation was the consistent originality and imagination of the Pixar writers and animators who turn unorthodox premises into movie magic. Up has surpassed movies like The Incredibles, Cars and Wall-E to become Pixar’s second highest-grossing picture in North America after Finding Nemo. The alchemy between moviemakers and their audiences is something even the most astute investment analysts simply can’t compute.
Ad Spending In Movie Theaters Up: CAC
Advertising in movie theaters is proving a bright spot at a time when spending on advertising has been pummeled in many other media.
Total cinema advertising industry revenues of Cinema Advertising Council members–which account for more than 82% of U.S. movie screens – grew by 5.8% to $571.42 million in 2008, compared to $540 million in 2007, according to the council.
Last year was the sixth consecutive year that cinema ad spending has increased. The increases have averaged 21.5% each year since the spending was first measured in 2002.
So who’s spending?
The top categories last year included, associations and causes, automotive, broadcast and cable television, consumer electronics, consumer packaged goods/health and beauty, credit cards, fashion, military, movie studios, retail, telecommunications and wireless.
“Marketers’ desire for engagement, impact and ROI is stronger than ever, and they are turning to cinema in increasing numbers,” said Dave Kupiec, president and chairman of the CAC. “Cinema is now a regular part of national, regional and local media buys—no longer just used primarily for campaign launches or special events—and in addition to spending increases, we are seeing a substantial rise in the number of national buyers as compared with previous years. Additionally, with the box office and admissions up in 2009, the strength of the medium has never been more evident.”
On-screen revenues accounted for more than 90% of total cinema advertising revenues. The rest is generated from off-screen promotions including, audio programming, sampling, special events and concession-based and lobby-based promotions.
Some 77% of total revenue is from national or regional advertisers, versus 23% from local sales.
One Of The Few Bright Spots: Cinema Ads
It was a down year for nearly every form of advertising, with everything from magazines to outdoor taking a hit in 2008.
A notable exception was cinema advertising, which recorded its sixth straight year of growth, up 5.8 percent over 2007, from $539.9 million to $571.4 million, according to the Cinema Advertising Council.
Spending on the medium has increased by 208 percent since 2002, the first year it was measured.
In 2008 the bulk of the money, just over 90 percent, was spent on on-screen advertising versus advertising elsewhere in the theater. That's down slightly from 92 percent the previous year.
National or regional advertisers accounted for 77 percent of sales.
Driving that growth is improved technology, which now enables advertisers to swap out and update creative digitally at the flip of a switch across hundreds of theaters.
That's made cinema advertising that much more attractive to marketers, especially national brands.
While the media economy overall fell 2.8 to 4 percent during 2008, depending on whose figures you believe, cinema advertising still pulled in new advertisers.
“We started digitizing seven years ago, and that made it easier for advertisers who had never explored cinema before to start using it,” says Dave Kupiec, president and chairman of the CAC.
Under the old technology, creative had to be distributed to individual theaters in the form of film. On-screen advertising was sold in four-week chunks, which essentially precluded marketers who wanted to advertise a limited-time promotion, like a weekend sale.
It was also cost-prohibitive, with a short spot running up to $300,000 to produce.
“Digital changed that. They can swap an ad out any time in the flight," Kupiec says. “And there are no film costs. Say someone sends in a two-minute videotape. We can put it up via satellite and send it to 18,000 movie screens.”
Kupiec says cinema advertising saw some of its biggest growth in the retail area this year because of that technology, with advertisers such as Kohl’s and Sears coming in for the first time in recent years.
Off-screen advertising, of the sort you see in movie theater lobbies, also saw some growth due to new interactive technologies, such as posters that send messages to passersby’s cell phones.
“The thing that’s getting attention is mobile applications, what to do with cell phones with touch screens, and 3D screens,” Kupiec says. “It’s technology that becomes new and exciting, captivating media. We find we’re getting a lot of requests for that sort of thing.”
Automotive remained one of the top ad categories in 2008, with Asian automakers spending especially heavily. Other top categories included television, consumer packaged goods, credit cards, fashion and movie studios.
Still, whether the ad spending growth will continue into what’s been a dismal start to the year for all media remains to be seen.
“The reality of this economy is that no matter how good cinema is, the number of contracts we’re writing is still increasing, but the amount we’re writing per contract is down versus prior years,” Kupiec says. “We know the economy is in the dumper for a year or so. That doesn’t mean we’ve lost momentum, it just means we’ve lost some money.”
CAC members account for 82 percent of the nearly 39,000 U.S. movie screens.
Cinema Advertising Spending Up 5.8 Percent In 2008 To Over $571 Million
NEW YORK — The Cinema Advertising Council (CAC), a national nonprofit trade association which serves cinema advertising sellers, the theatrical exhibition community and the advertising community, today unveiled its new report on cinema advertising revenues. According to the association’s report, total cinema advertising industry revenues of CAC members – which account for more than 82 percent of U.S. movie screens – grew by 5.8 percent to $571,421,000 in 2008, as compared to a total of $539,946,000 in 2007. The announcement of the report – which was independently tabulated by Miller, Kaplan, Arase & Co. LLP – was made today by Dave Kupiec, president and chairman of the CAC.
Cinema advertising grew despite a year that saw spending in other traditional media decrease significantly. Meanwhile, since 2002 – the first year that cinema ad revenue was measured by the CAC – spending in this medium has increased for six consecutive years, with an average of 21.5 percent per year and 2008 spending reaching a total that is 208 percent higher than spending in 2002.
“Marketers’ desire for engagement, impact and ROI is stronger than ever, and they are turning to cinema in increasing numbers,” said Mr. Kupiec. “Cinema is now a regular part of national, regional and local media buys – no longer just used primarily for campaign launches or special events – and in addition to spending increases, we are seeing a substantial rise in the number of national buyers as compared with previous years. Additionally, with the box office and admissions up in 2009, the strength of the medium has never been more evident.”
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 offscreen revenues – including those derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions. On-screen revenues accounted for over 90 percent of total cinema advertising revenues. Additionally, approximately 76.53 percent of total revenue is from national or regional advertisers (versus 23.47 percent from local sales).
Top national cinema advertising categories in 2008 included Associations & Causes, Automotive, Broadcast & Cable Television, Consumer Electronics, Consumer Packaged Goods/Health & Beauty, Credit Cards, Fashion, Military, Movie Studios, Retail, Telecommunications and Wireless.
Additionally, growth in 2008 was attributable to increasing activity across a broad spectrum of emerging categories, from CPG/Health & Beauty to Media, Retail, Electronics, Leisure/Tourism and Financial Institutions.
“Cinema advertising spending continues to grow, and advertisers are seeing real results as they increasingly find ways to include cinema as part of their overall media mix, along with other sight, sound and motion buys such as television,” added Mr. Kupiec. “In fact, as a recent cinema advertising study conducted by Integrated Media Measurement Inc. (IMMI) showed, combining television and cinema in an ad campaign more than doubled the consumer conversion rate as compared to television alone, while doubling the lift and extending incremental reach, all the while targeting key demographics including ad-avoiders. These are the results media agencies and their clients crave, and cinema continues to be a growing, powerful medium.”
Cinema Ads Slow But Still Grow
By Paul Bond
June 15, 2009, 12:01 AM ET
Revenue from advertising in U.S. movie theaters grew just 5.8% last year, marking the slowest gain in the seven years that such statistics have been kept.
Still, the Cinema Advertising Council, which is expected to release its 2008 report Monday, can boast of an ad industry still showing growth while most others are not.
"Media has seen such huge slippage -- with audiences and advertisers both leaving -- that to have a medium with growth is significant," CAC president and chairman David Kupiec said.
According to the CAC, cinema advertising in the U.S. grew 5.8% to $571 million in 2008, down from 19% growth the previous year and 15% the year before that.
The CAC has been keeping track of revenue generated by the industry since 2002, when the industry took in just $186 million. Since then, it has grown at an average clip of 21% each year.
The CAC measures ad dollars from onscreen and other in-theater initiatives but only at member theaters, which account for 82% of U.S. movie screens.
Kupiec said that this year theaters are closing more ad deals than last year, but, because of the weak economy, they are smaller in size.
Advertisers pay a premium on a CPM basis for cinema advertising compared with television because the recall rate is as much as five times greater, Kupiec said.
Cinema ad campaigns can run as high as $2 million a month for ads on 30,000 screens. On a CPM basis, they usually run $30-$40, about twice the going rate for primetime television.
In 2008, 90% of cinema advertising was of the onscreen variety, while lobby-based ads, sampling, concession promotions, etc. made up the other 10%.
The CAC said 77% of the ad revenue last year came from national and regional advertisers and that the remainder was from local sales.
Show Time: Cinema Ad Revenue Rose 5.8% In 2008
Cinema advertising revenue rose 5.8% in 2008 compared to 2007, from $540 million to $571 million, according to the Cinema Advertising Council. The organization did not release a quarterly breakdown of the revenue figures. However, the overall growth stands out in a year when total advertising spending fell 2.6%.
Dave Kupiec, the president and chairman of the CAC, cited new ad offerings and the continued consumer appeal of cinema during a recession as reasons for the medium's success.
"There are some things about cinema that are very strong and impactful, that advertisers have become increasingly aware of," according to Kupiec, including increased recall for video ads that run in cinema and on TV versus ads seen on TV alone.
He says movie theaters offer "entertaining pre-shows and a very engaged audience with eyes glued to a 40-foot screen. Its impact is obvious." Perhaps most important, the medium has become easier to use with the implementation of large-scale digital content distribution systems, which allow cinema advertisers to test and modify ad creative and make highly targeted ad buys.
Advertisers are also showing interest in new lobby ad platforms, including digital signage, backlit posters, promotions, and in some places, holographic displays. "These allow [advertisers] to reach the moviegoer at multiple touchpoints, close to the point of purchase," he adds, when the cinema is co-located with a mall.
Together, these features have drawn some new advertisers to cinema ad platforms, including greater spending by consumer packaged-goods, health and beauty products, and foreign import automotive in 2008, per Kupiec.
For all its advantages, cinema advertising is still a relatively small part of total ad dollars -- representing just 0.5% of a total $136 billion spent in 2008, according to Nielsen. The leading cinema advertisers, National CineMedia and Screenvision, both hope to persuade television advertisers to move some of their video budget to cinema. In February, the CAC released the results of a study showing that the combination of TV and cinema advertising -- versus TV alone -- boosted conversion rates from 24.7% to 50%.
Through May, movie ticket sales were up 13% compared to the same period in 2008, while attendance is up 10%, according to Hollywood.com.
CAC Names '08 Creative Winners
There's another reason Happy the Hedgehog, the star of Sprint's in-theatre "silence your cell phone" commercial is happy. The spot, titled "Pants, No Pants" and created by Goodby, Silverstein & Partners, was one of six winners of the Cinema Advertising Council's Creative Excellence Awards for 2008.
The awards recognize high-quality, entertaining advertising that has run in movie theatres during the past year, on a national, regional and local basis. "Pants, No Pants" was the top regional/national commercial spot.
Picking up the top regional or national long-form advertisement was the History Channel's ad promoting its "Life After People" series.
Army National Guard won the top integrated cinema advertising award for its coordinated on-screen spot and in-lobby "Citizen Guard" campaign created and placed by LM&O Advertising.
The top local commercial spot was awarded to Carolina Hurricanes: "135946 - There's A Storm Coming" created by CanesVision.
The top still image ad award went to LaGloria Latin American Sports Grill: "LaGloria Latin American Sports Grill" created by Screenvision Direct.
Marshall University's spot created by UniqueScreen Media took the top digitally animated cinema ad award.
"There is no better showcase for a great piece of creative than the big screen and the unique environment of the cinema," said Dave Kupiec, president and chairman of the CAC. "When you have an audience that is totally focused on the screen, and a 40-foot canvas to work with, it's a creative director's dream."
Cinema Advertising Council Names Winners Of Annual Creative Excellence Awards
NEW YORK — The Cinema Advertising Council (CAC), the trade association of cinema advertising companies that represent 82% of U.S. movie screens, has today named the winners of its 2008 CAC Creative Excellence Awards. The annual awards recognize high-quality, entertaining advertising that has been showcased in movie theatres during the past year, on a national, regional and local basis.
“There is no better showcase for a great piece of creative than the big screen and the unique environment of the cinema,” said Dave Kupiec, president and chairman of the CAC. “When you have an audience that is totally focused on the screen, and a 40 foot canvas to work with, it’s a Creative Director’s dream. As more and more clients add cinema to their media mix, we have an increasing volume of great work to choose from each year. These awards recognize some of the work which stood out and entertained audiences to the fullest”
Nominees were chosen by the CAC membership, and the winning creative was determined by votes from the CAC Board of Directors, marketing committee members, and creative directors from select member companies. Advertising that appeared in the theatre environment between January 1, 2008 and December 31, 2008 was eligible.
Following are the winners of the 2008 CAC Creative Excellence Awards:
- Top Regional or National Commercial Spot (ran in more than one theatre in two or more markets) – Sprint: ‘Pants, No Pants’ (Creative: Goodby, Silverstein & Partners)
- Top Regional or National Long-form Advertisement – History: ‘Life After People’ (Creative: Internal Creative)
- Top Integrated Cinema Advertising Campaign (coordinated on-screen and in-lobby advertising elements) – Army National Guard: ‘Citizen Soldier’
(Creative: LM&O Advertising; Media: LM&O Advertising)
- Top Local Commercial Spot – Carolina Hurricanes: ‘135946 - There's A Storm Coming’ (Creative: CanesVision)
- Top Still Image Advertisement (local, regional or national; slide or digital) –LaGloria Latin American Sports Grill: ‘LaGloria Latin American Sports Grill’ (Creative: Screenvision Direct)
- Top Digitally Animated Cinema Advertisement (local, regional or national) – Marshall University: ‘Marshall University’ (Creative: UniqueScreen Media)
Awards are given to the advertiser and/or the creative agency responsible for the advertisements, except for the integrated campaign awards which go to the advertiser, creative agency and media agency.
Michael Sakin Joins The CAC Board
Michael Sakin has joined the board of directors of the Cinema Advertising Council. He will serve as director for cinema advertising vendors representing less than 5,000 screens, as well as chair of the CAC marketing committee. Sakin is senior vice president of sales for Landmark Theatres.
Michael Sakin Added To Cinema Advertising Council Board Of Directors
NEW YORK – The Cinema Advertising Council (CAC), has elected Landmark Theatres’ Senior Vice President of Sales Michael Sakin to its Board of Directors, as director, cinema advertising vendors representing less than 5,000 screens. He will also continue to serve in his role as chair of the CAC marketing committee. The CAC Board of Directors is selected each March at its annual meeting at ShoWest.
A media veteran with more than 20 years in the field, Mr. Sakin has spent 16 of those years in national cable. During that time, he held various positions, eventually making his way to SVP of advertising sales at Fox Cable Network Group and later as SVP at Game Show Network.
For the past four years, Mr. Sakin has focused on the out-of-home market, heading up ad sales for the Ultimate Fighting Championship before dedicating himself to cinema where he served as VP of national sales for Screenvision until his current position at Landmark Theatres.
The other CAC board members have retained their positions. CAC Chairman and President Dave Kupiec (executive vice president of sales and marketing for National CineMedia) and Executive Director Andrew Blacker (senior vice president, marketing and research, Screenvision) continue as directors, cinema advertising vendors representing 5,000 screens or more, and Stewart Harnell (president and CEO, Cinema Concepts), is director representing affiliate members.
Pre-movie Video Advertising Is 34% Higher Than The Index Average
Pre-movie video advertising is the highest indexing medium among audiences who say they are "very likely/extremely likely" to pay attention to advertising in 21 media categories.
CAC Close-Up: Blacker Named Exec Director, Cinema Ads Prove Effective
The Cinema Ad Council has a new executive director: Andrew L. Blacker, senior vice president, marketing and research, Screenvision. Blacker, a seasoned media and marketing pro, has a strong focus on digital strategies. He will join Dave Kupiec, CAC's new president and chairman, who sees the industry as an advertising plus during economic woes.
The 6-year-old trade association serves cinema ad sellers and the theatrical exhibition community. It reps cinema advertising companies that account for more than 82% of U.S. cinema screens, per the National CineMedia and Screenvision.
"Cinema ads work better during recessionary times. First, the cinemas are more full, so there are more prospects and more impressions for advertisers," says Kupiec. "Traditionally, cinema is not only recession-proof, it is actually one of the only media forms that grows in a recession. Through this past weekend, cinema box office revenue is up over 18% versus the same period of 2008.
"Secondly, advertisers are also directly affected by the soft economy and are cutting their budgets; therefore, ad effectiveness becomes even more important with each dollar spent. It means more efficient and more effective CPMs," Kupiec adds. "Ad recall of cinema is three to six times greater than TV." CAC currently has no ad projections for 2009.
Blacker, Kupiec's new executive director, joined Screenvision earlier this month. Prior to that, he was vice president, Discovery Communications, commerce division overseeing marketing, online/offline promotions and new business strategy and development. He has also held executive posts at AOL Networks Marketing and Strategy Group and Ebrick.com.
A CAC study, performed by IMMI earlier this month, found that combined cinema and TV ad campaigns more than doubled the conversion rate and lift compared to a TV-only campaign.
Tracking the results of three ad campaigns for cable TV shows, IMMI found that only 10.1% of subjects exposed to a TV-only campaign watched the show's premiere, versus 22.7% for combined TV and cinema campaigns. Later, 24.7% of the former group went on to watch any episode of the show, versus 49.5% of the latter.
Study: Cinema + TV Ads Conversion > Just TV Ads
Spending on in-theater advertising has soared in recent years, and a new study suggests that it’s even more effective when paired with a TV ad campaign. Research conducted by Integrated Media Measurement for the Cinema Advertising Council finds that combined television and cinema ad campaigns almost doubled conversion rates compared to television alone. Of those exposed to a TV-only ad, 10.1 percent tuned into a show’s debut, compared to 22.7 percent who were exposed to TV and cinema ads. That was roughly the same ratio for any TV show airing, with 24.7 percent tuning in after seeing a TV-only ad compared to 49.5 percent for TV and cinema ads. The study also found that cinema advertising is more effective at reaching traditional media ad avoiders, who make up 28 percent of frequent moviegoers.
Study Says Theater Spots Deliver Ad Message
It’s long been said that the best way to sell television is by using television.
Now the Cinema Advertising Council is saying it’s the commercials in movie theaters that have helped cable television networks get viewers to tune in to new programs.
The CAC’s research shows that viewers who saw spots both on television and in theaters were much more likely to get the message than viewers who saw them in just one place or the other.
The CAC, which represents theater owners controlling about 82% of U.S. movie screens, commissioned Integrated Media Measurement Inc. to conduct its research. IMMI uses a unique technology involving specially outfitted cell phones that record the audio signatures of programming and advertising to conduct multiplatform research.
IMMI conducted a six-week study that tracked the behavior of ads promoting three prominent cable television shows. IMMI found that when exposure to the TV ad campaign was combined with exposure to in-theater messages, the odds that the consumer tuned in to the show more than doubled compared with the consumer who saw only the television ad. The combination of television and cinema ads also provided incremental reach and the ability to target key demographics, including people who normally try to avoid advertising.
Specifically, IMMI found that of those exposed to any ad in the study, only 10.1% of those exposed to an ad on television tuned in to the show’s premiere, compared to 22.7% who tuned in to the show’s premiere when exposed via both TV and cinema ads.
The study found 24.7% of the panelists who saw an ad only on TV watched at least one episode of the show being advertised. The tune-in rate increased to 49.5% among panelists who saw ads both on TV and in the theater.
IMMI uses ads for TV shows to measure response rates because its cell phone-like devices can tell whether panelists consume the programs being promoted, creating a single-source research product. But the idea that a combination of media improves response rates should hold up for a variety of products.
“This study proves the power of cinema to positively impact ROI, versus using TV alone,” said Dave Kupiec, chairman and president of the CAC. “There have always been synergies to combining cinema with TV on a client’s media plan. Most marketers view cinema as a ‘network’—one that can provide regional or national reach—and they know that cinema reaches consumers primarily on weekends when TV viewing is at its lowest. Now we have proof that by adding cinema to the media mix, clients will dramatically increase their ROI.”
The IMMI study also found that cinema advertising overdelivers multitasking consumers. Movie ads are 64% more likely to reach consumers who text while watching TV, and movie ads are 25% more likely to grab those who are online while watching.
Cinema advertising also does a strong job reaching people in the 13- to 34-year-old age bracket. Men 13 to 17 are 124% more likely to go to movies than the average individual; men 18 to 24 are 49% more likely.
The study also found that 28% of frequent moviegoers are ad avoiders. Those people are 157% more likely to see an ad in a theater than in other media measured.
Big Screen: Study Touts Cinema Ad Effectiveness
Two new studies give a boost to out-of-home advertising, touting its ability to reach consumers in a fragmented media environment -- especially if advertisers understand behavior patterns in the local market and use the medium in conjunction with other channels.
The first study, released by the Cinema Advertising Council, highlighted the effectiveness of pre-show movie advertising in combination with TV. The second, from PosterScope, delivered insights into the different patterns of consumer exposure to outdoor advertising in various U.S. markets.
The CAC study, performed by IMMI, found that combined cinema and TV ad campaigns more than doubled the conversion rate and lift compared to a TV-only campaign. Tracking the results of three ad campaigns for cable TV shows, IMMI found that only 10.1% of subjects exposed to a TV-only campaign watched the show's premiere, versus 22.7% for combined TV and cinema campaigns. Later, 24.7% of the former group went on to watch any episode of the show, versus 49.5% of the latter.
Cinema advertising contributed to this rise, in part, by reaching a higher proportion of "ad-avoiding" and multitasking consumers. 28% of moviegoers are classified as "ad avoiders," meaning that overall moviegoers are 157% more likely to see ads at the movie theater than on TV.
Further, movie ads are 64% more likely to reach people who use their phone to send text messages while watching TV, and 25% more likely to reach those who are online while watching TV.
Separately, the Posterscope study provides a market-specific analysis of consumer behavior in the top 20 DMAs, tracking the population's movement and exposure to out-of-home advertising. According to Posterscope's poll of 9,000 adults, 41% of New Yorkers can be reached via public transportation venues, while 50% of San Franciscans can be reached in coffee shops.
Posterscope further breaks down behavior patterns by demographic attributes, noting that men ages 18-34 in Atlanta frequent movie theaters, while their counterparts in Chicago can be reached at public transportation venues.
Cinema Advertising Streams Ahead
No one told cinema advertisers about the economic downturn, it seems, as the two main companies, Screenvision and National CineMedia, continued to release a stream of good news over the last several weeks. Their solid performance bodes well for the future of not just cinema advertising but the digital out-of-home medium in general.
Most recently, Screenvision announced that it has signed deals with new advertising clients in a variety of industries, evidently hoping to cash in on holiday movie-going this season. Among Screenvision's new advertisers are the jewelry retailer Zales, the Dish Network, SanDisk, Sony, and Buena Vista Syndication.
According to Screenvision, Zales is promoting its "Celebration Diamond" sale with a 30-second spot called "Love Rocks" in Screenvision's premium pre-show ad pod. Meanwhile the Dish network is promoting its "Turbo HD" program with a 60-second spot featuring Frank Caliendo, the comedic impersonator; Sony's 30-second spot will be its first ever for the PlayStation in a cinema ad campaign; SanDisk is promoting camera memory cards; and Buena Vista is promoting its new series, "Wizard's First Rule." Screenvision also reported that past clients Microsoft and PBS will be returning to the cinema ad network with new campaigns this holiday season.
Three weeks ago, Screenvision's main competitor, National CineMedia, announced strong third-quarter results -- with 9.9% growth in ad revenue compared to the same period in 2007, increasing from $91.3 million last year to $100.3 million this year. The proportion of ad inventory used remained about the same -- 92.9% in the recent quarter versus 93.1% last year. The increase in revenues was due mostly to a 17.2% hike in ad rates and drove 18% growth in income, which rose from $9.2 million to $10.9 million.
NCM also introduced a new online platform, www.NCM.com, that it hopes will become an entertainment destination. It will offer interactive guides and features about movies, TV and NCM's "Fathom" events, with other entertainment categories to follow. One of the new interactive features, HyperTrailer, allows viewers to pause, rewind and navigate to related content areas while watching a movie trailer. Visitors can download widgets that help them find the nearest and soonest movie showings, as well as buy tickets via Fandango and NCM's affiliated theater circuit Web sites.
Chicago Tribune: Premiering On The Silverscreen: Ads
Premiering on the silver screen: Ads
By Mary Ellen Podmolik | SPECIAL TO THE TRIBUNE
February 24, 2008
http://www.chicagotribune.com/business/chi-sun_movieads24feb24,0,6783708.story
Moviegoers this Oscar weekend may see director Martin Scorsese up on the big screen, but not in the typical uncredited cameo appearances he's made over the years.
Instead, the director brazenly barges in on a family phone call, telling a mother and son how they should act during the scene. The gist of the 30-second skit: since Hollywood doesn't interrupt your phone calls, don't interrupt their movies.
On its face, the bit is a public service announcement, courtesy of AT&T Mobility. But it really serves as a clever corporate branding message for AT&T, which like so many other marketers is trying to find new ways to grab consumers' attention.
AT&T, which has done similar PSAs with Sidney Pollack and Forest Whitaker, is so pleased with the results of its campaign that it is considering big-screen ads for its cell phone business. In surveys, AT&T found that 62 percent of moviegoers recall AT&T as the company reminding people to silence their phones, and 72 percent said they appreciated its efforts.
"It's a great branding message for us," said Daryl Evans, vice president of advertising and marketing communications for AT&T Mobility. "It's a positive way to relate with the audience."
And the biggest ah-ha realization for marketers, who, like Evans, are increasingly looking to the big screen? "It's TiVo-proof," he said.
Long gone are the days when the only marketing messages to run before movie trailers and the feature presentation were drab slides about the concession stand or a local insurance broker. Long gone, too, are the howls of protest by moviegoers who complained that they didn't buy a ticket in order to be subjected to TV commercials.
For the past five years, companies and marketers have been refining "preshows" that blend film industry behind-the-scenes shorts, TV snippets, trivia questions and advertising.
Now, more marketers are turning to theaters to unveil new campaigns on 40-foot screens with rich audio before they scale down the ads and put them on television.
For some in the advertising industry, the recent writer's strike shined a new light on cinema opportunities.
Ad-buying behemoth MediaVest, whose client roster includes Wal-Mart Stores Inc., Kraft Foods Inc. and Procter & Gamble Co., began talks last month with leading cinema ad companies Screenvision and National CineMedia LLC about transferring more than $100 million of prime-time ads from television to the movie screen.
"Even without the writer's strike, should that not have happened, we'd still be talking to our clients about looking at their current communications mix," said Norm Chait, MediaVest's senior vice president and director of out-of-home investment and activation. "Cinema was a natural place to go. There is no switching, clicking. Unless you're looking at your feet, you're seeing the ad.
"It's not that [marketers] are going to walk away from television. TV is still the 800-pound gorilla. But now's the time to say television is not your only solution."
Ad revenue booming
Movie theater commercials represent a growing phenomenon. On-screen ad spending rose 15 percent, to $417.4 million, in 2006, according to the most recent figures available from the Cinema Advertising Council, whose members account for more than 80 percent of U.S. movie screens.
In-theater advertising isn't a cheap solution, but proponents say it does offer advertisers a way to break out of the clutter. During a 25-minute preshow, about 10 minutes are devoted to a combination of local and national ads; the price tag for a 30-second spot can run from $1 million to close to $2.5 million. The most expensive ads run right before the trailers begin.
Technological advancements allow a marketer to target audiences, say by running mini-van ads before a PG-rated movie or playing the ads only in certain ZIP codes. Target stores in February debuted a "dream in color" ad honoring Black History Month in theaters popular with African-Americans before putting the commercial on television. Movie theater ads for three Unilever products, Axe, Sunsilk and Dove soap, last year were shown to three different types of audiences in Chicago, based on the type of film played.
In-theater advertising has become a source of income for theater operators, but it still pales in comparison to concession-stand sales.
The irony, of course, is that the movie industry is dealing with its own struggles. Last year, box-office ticket sales rose 4 percent, to $9.7 billion, but attendance was flat, according to box-office tracking company Media by Numbers.
Still, the 1.42 billion tickets bought last year represent a relatively captive audience once they are inside the theater, distracted from the screen only by trips to the restroom and concession stand or personal conversations before the feature begins. And many of those patrons are the teens and young adults coveted by product marketers.
Moviegoers do have plenty of time to kill before the 10 minutes of movie trailers that precede a movie. A recent study by Arbitron found that moviegoers are in the theater between 24 and 28 minutes before movie previews begin.
The same study found that 59 percent of moviegoers watch the preshow commercials before the movie starts, and 63 percent of people, and specifically 74 percent of teens, don't mind the ads. More important, 21 percent of moviegoers say they were more interested in a product after seeing it advertised on-screen.
"Outside of the Super Bowl, we are probably the second-best place to break creative," said Michael Chico, executive vice president of Screenvision.
Much of that acceptance has come from the fact that companies like Screenvision and National CineMedia are careful to cut off the digital transmissions right at the publicized showtimes. It's just as critical to offer top-quality entertainment during the preshow as it is to run the last commercial at 7:59 if the advertised show time is 8 p.m.
"We learned early on, and we made our mistakes early on, that consumers want to go to movies and be entertained," said Clifford Marks, president of sales and chief marketing officer of National CineMedia, whose clients include Unilever, J.C. Penney Co. and Nike Inc. "You're not paying the baby-sitter" to watch commercials.
Emphasis on creativity
Chris Johnson, vice president of Classic Cinemas, which operates a dozen movie houses in Chicago's suburbs, said he might have had one complaint in the past year about the preshow ads, but it is nothing compared with years ago when the ads were still running after the posted show times.
"I think the younger audiences like it more," he said of the preshows. "It's in the same vein of when you go to a ballgame and you're inundated with ads and sponsored events. [But] if you just take a TV commercial and put it on the screen, that's not as compelling."
That has become the challenge for marketers, to come up with clever creative efforts worthy of film audiences and a 40-foot screen. Increasingly, cinema ad companies are pressuring advertisers to break longer-format campaigns first in theaters and then trim them down and air them on television. Just a few years ago, marketers would place 2-month-old commercials on the big screen, but that doesn't cut it anymore.
"You try to have more entertaining commercials," said Randy Freissner, senior vice president and group media director of The Martin Agency's Ingenuity Media Group. "People are there to be entertained. You're not going to do a hard sell. You don't want to have something that is more informative and less entertaining."
Hollywood Reporter: Reports 15% Growth For In-theater Ads
In-cinema advertising grew into a $455.7 million business in the U.S. last year, 15% better than in 2005 and far outpacing boxoffice growth during the same frame.
The Cinema Advertising Council is set to release Monday its 2006 annual report, which indicates that onscreen advertising jumped from $361.6 million in 2005 to $417.4 million last year and that the smaller offscreen category went from $33.2 million to $38.3 million.
Offscreen cinema advertising consists of lobby promotions, standees, ads on popcorn bags, sampling and any other form of marketing that is done inside theaters but not on movie screens.
While still just a small portion of overall exhibition revenue, the growth prospects for in-theater advertising far outweigh those of boxoffice and concession sales. Boxoffice revenue in the U.S. and Canada, for example, rose 5.5% last year to $9.5 billion after falling the previous year, according to the MPAA.
The CAC's data includes only the screens belonging to CAC members, which is the vast majority. Of 39,600 screens in the U.S., 30,800 of them sell ads, and CAC members own about 81% of those ad-selling screens.
CAC president and chairman Clifford Marks said that several industries already have embraced in-theater advertising, with newer ones including family restaurants, packaged goods and retail. Industries with more experience with in-theater advertising include automotive, movie studios, television, consumer electronics, telecom, financial services, educational institutions and the military.
About 70% of in-theater advertising comes from national advertisers, while 30% is regional.
One trend helping in-theater advertising maintain its growth trajectory is that about 18,000 ad-selling screens have upgraded to digital satellite systems that allow the same client to have different ads on different screens.
"They can buy nationally and sell locally," Marks said.
According to industry insiders, a four-week national campaign that would use the two top in-theater advertising companies -- National Cinemedia and Screenvision -- to blanket the nation's ad-selling screens would cost about $4 million. Under that scenario, the ads would be seen by 50 million-100 million moviegoers.
"The best thing to have happened in this industry is that both National Cinemedia and Screenvision have invested significantly to create entertaining preshows," Marks said.
One memorable spot has Vince Gill singing what sounds like a serious country ballad to a teary-eyed audience, though he's accompanied onstage by an apple and some grapes. It's a two-minute Fruit of the Loom underwear commercial.
"There's a trend toward longform marketing embedded in short, entertaining films, music videos or behind-the-scenes footage," Screenvision senior vp marketing Stu Ballatt said.
According to a TNS study in 2005, moviegoers exposed to in-theater advertising were 44% more likely to remember the ad than were viewers who saw a similar commercial on television.
"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," Marks said.
Daily Variety: Bigscreen Ad Revenues Rise
Bigscreen ad revenues rise
CAC figures show 15% increase in 2006
By DADE HAYES
http://www.variety.com/article/VR1117974029.html?categoryid=13&cs=1
Revenue from ads on movie screens reached $455.7 million in 2006, up 15% from $394.8 million in 2005, according to a report out today from the Cinema Advertising Council.
Offscreen revenues, including all ad initiatives in theaters that don't involve the movie screen, also surged 15%, hitting $38.3 million from $33.2 million in 2005.
The CAC, which reps about 81% of the 37,740 screens in the U.S., presented the results, which were independently tabulated by Miller, Kaplan, Arase & Co.
Clifford E. Marks, the org's prexy and chairman as well as prexy of sales and marketing at major onscreen ad firm National CineMedia, said the revenue gain is only part of the story. The resistance to the notion of ads before a feature film has significantly eroded among audiences and ad buyers alike, he said.
"If you go back to when we were putting up slides and showing photos of local Realtors, we have come a really long way," Marks said. "You don't hear of people booing commercials or the backlash we used to hear from people."
Only 8% of moviegoers surveyed by ScreenVision, a major screen ad firm and CAC member, said they would prefer no pre-show at all over current offerings.
Marks said a diverse range of advertisers are starting to tailor their pitches to the megaplex, though only 25% of the commercials shown are made uniquely for the cinema.
The pitch from CAC to advertisers is to use theaters, where attention and retention are far higher than in other media, as a launch platform before running shorter versions of the same ad in other media.
Audiences would want to be in on the inception of an ad campaign that later appears on TV and online, ad execs maintained.
"With regard to audiences, there is virtually no resistance" to pre-show ads, said Stu Ballatt, senior VP of marketing at ScreenVision. "That's been overplayed since the beginning."
MediaWeek: CAC: Cinema Ads Continue Brisk Yearly Gains
CAC: Cinema Ads Continue Brisk Yearly Gains
Katy Bachman
OCTOBER 15, 2007 –
http://www.mediaweek.com/mw/news/tvstations/article_display.jsp?vnu_content_id=1003658095
The big screen continues to draw interest from national advertisers who have poured enough cash into cinema advertising to put it up among the fastest growing ad media.
In 2006, cinema-advertising revenue grew 15 percent to $455.6 million, according to figures to be released Monday (Oct. 15) by the Cinema Advertising Council. On-screen ad revenue lifted 15 percent to $417.4 million. Off-screen revenue, such as lobby promotions, was also up 15 percent to $38.2 million.
Tracking cinema advertising since 2002, the CAC revamped its calculating method for the 2006 figures, basing them solely on its members, which represent 81 percent of U.S. movie screens.
Once a mostly local medium, the cinema ad industry has transformed itself by heavily investing in digital and high-definition technology. Today about 70 percent of cinema advertising is national, noted Cliff Marks, president of the CAC and president of sales and marketing for National Cinemedia. Digital technology also allows clients to buy nationally and localize or regionalize messages. Ford, for example, inserted Hispanic creative in specific markets.
This year, the industry is expecting a repeat performance, with new advertisers signed up. NCM in third quarter added Wendy’s, JC Penney, eBay and Yahoo. Screenvision added American Girl, Build-A-Bear, Geico and All-State.
AdWeek: Cinema Ad Revenue Up 15 Percent
Cinema Ad Revenue Up 15 Percent
October 15, 2007
By Shahnaz Mahmud
http://www.adweek.com/aw/national/article_display.jsp?vnu_content_id=1003658338
NEW YORK Ad revenue among Cinema Advertising Council members grew 15 percent to nearly $456 million in 2006, up from $395 million in 2005, according to a CAC report released today. CAC members account for more than 81 percent of U.S. movie screens.
Miller, Kaplan, Arase & Co. determined the figures.
The report includes revenue data for both on-screen and off-screen cinema advertising. On-screen includes commercials aired prior to movie previews and feature presentations. Off-screen includes audio programming, sampling, special events, concession-based efforts and lobby promotions.
The report said on-screen advertising increased 15 percent to slightly more than $417 million in 2006, up from $362 million in 2005. Off-screen figures also rose 15 percent, to $38 million-plus in 2006, up from $33 million in 2005.
"What was a testing ground five years ago for marketers has become a very significant and important part of their annual media planning. The reason that marketers continue to come back is because the recall is incredible, the impact is big—and it works," said Clifford Marks, chairman and president of the CAC and president of sales and marketing at National CineMedia.
The report indicated that the growth in revenue is also attributable to other types of advertisers getting into the space. These include: food and consumer packaged goods, consumer electronics, telecom, financial services and Internet and entertainment media.
Overall, automotive, entertainment, consumer electronics, telecom, financial services, education and government/military firms ranked among the leading national cinema advertisers in 2006, the survey said.
NY Post: CINEMA AD BUZZ IN-SHOW BIZ SIZZLES
CINEMA AD BUZZ
IN-SHOW BIZ $IZZLES
By HOLLY M. SANDERS
http://www.nypost.com/seven/10152007/business/cinema_ad_buzz.htm
October 15, 2007 -- Call it a sequel, but cinema advertising is having another blockbuster year.
Revenue from in-theater advertising topped $456 million last year, up more than 15 percent from $395 million the year before, according to a new report from the Cinema Advertising Council.
Advertisers eager to reach an audience stuck in their seats are buying up the time in between shows, making it one of the fastest-growing ad categories.
New kinds of advertisers, such as retailers and consumer-products companies that haven't traditionally advertised in theaters, are also getting on board.
In general, digital projectors have made it easier and less expensive to show pre-movie ads, compared with the old method of putting ads on film stock.
Plenty of people still find in-theater ads annoying, but industry execs like to cite an Arbitron study that claimed two-thirds of people don't mind advertising at the movies.
Cliff Marks, chairman and president of the Cinema Advertising Council, is convinced consumers are more accepting of the practice. He credits that in part to pre-shows - a blend of ads and entertainment that lasts between 20 and 25 minutes - with making commercials more palatable.
The big theater chains have also listened to consumers and are being careful about commercial clutter, he said.
"Theaters are encouraging entertainment pre-shows and limiting commercial load," he said. "Many aren't running ads after the show time."
Marks is also the head of sales for National CineMedia advertising, a major theater ad firm that went public this year. National CineMedia and competitor Screenvision are the leaders in pushing for pre-shows.
The latest figures include both on-screen cinema advertising - commercials that air in advance of a movie - as well as off-screen promotions such as displays in the lobby or ads on popcorn bags.
Sales from on-screen advertising alone increased 15 percent, to $417 million from $362 million.
holly.sanders@nypost.com
USA Today: Advertainment Greets Moviegoers
Advertainment greets moviegoers
By Laura Petrecca, USA TODAY
http://www.usatoday.com/money/advertising/adtrack/2007-10-14-movie-ads_N.htm
Moviegoers at 12 U.K. cinemas on Saturday became human joysticks.
They were shown an ad for the Volvo XC70 before the movie Ratatouille, and were asked to put their hands in the air and wave them left or right — as a group. A single camera at the front of the theater translated the audience's collective leanings, and the onscreen animated car drove in that direction.
That participatory commercial represents a growing trend in movie theater advertising, with on-screen ads and lobby displays becoming more interactive, more entertainment-oriented and frequently offbeat — such as a tongue-in-cheek promotion where an oral-care company stuck dental picks to the popcorn bags.
The idea is that more fun makes advertising go down better with a theater's captive audience.
"If you are going to use cinema advertising, the bar is higher in terms of the engagement and the entertainment that you have to bring to the table," says Jay Waters, chief strategy officer at marketing agency Luckie and Co. "Consumers think, 'I get free programming at home in exchange for watching advertising, but I paid to come in here, so why should I have to watch an ad?' "
The innovations come as marketers continue to ramp up spending on movie theater promotions.
On Monday, the Cinema Advertising Council will report that spending in 2006 hit $456 million — a 15% rise over the prior year. That total includes revenue from on-screen commercials — ads that run before the movie previews — as well as off-screen promotions, such as lobby displays, sample handouts and ads on popcorn bags. CAC members represent about 81% of the movie screens in the USA.
As cinema ads become a regular part of the movie-going experience, marketers continue to try new techniques to test their potential for amusing, rather than alienating, the paying customers.
"If you let people have fun, they don't feel like they've been intruded upon," says David Polinchock, chief experience officer at Brand Experience Lab, which was responsible for the interactive technology behind the Volvo ad. "They don't walk away upset."
Matthew Kearney, CEO of Screenvision, which sells ads for theater chains such as National Amusements and Carmike Cinemas, says the company aims for "entertainment" in on-screen ads before previews that "are designed to help the time pass."
Those ads are welcome new revenue for theater owners grappling with lack of growth in U.S. ticket sales.
From 2002 to 2004, box-office revenue remained relatively flat, hovering around $9.5 billion, according to the Motion Picture Association of America. In 2005, it dipped to $8.4 billion, before reviving to $9.6 billion last year.
Yet, some ad critics still sit there seething and anti-ad groups have organized via the Internet, such as the Captive Motion Picture Audience of America. At captiveaudience.org, consumers are urged to "say 'NO' to TV commercials before feature films at movie theaters."
Theater owners, however, continue to say, "Yes." A look at what's been showing up at theaters:
•Long-form videos. This month, Geico launched a two-minute music video featuring its ad cavemen singing about romantic troubles in their lives. Set in a chic apartment, the video ends with a plug for the Geico website CavemansCrib.com.
"People would much rather see this than a still ad for a dentist," says Phil Ovuka, Geico media director.
The ad is being shown on 4,062 screens at 341 theaters nationwide, says Geico's Joe Talbott, who wrote and directed the video.
•Offbeat lobby displays. This summer, to promote The Simpsons Movie, about 1,000 U.S. and Canadian theaters had life-size lobby displays of Marge, Homer, Bart, Lisa and Maggie on their signature sofa. It had a seat open for moviegoers to plop down next to the characters — and snap cellphone photos.
•Interactive on-screen ads. An Army National Guard ad in about 1,100 theaters in December urged patrons to use their cellphones to text their age to get information about Guard fitness requirements. Those that did got a text reply listing sit-ups, push-ups and running distance needed. They also received subsequent messages about enlistment benefits, such as tuition assistance.
•Corny add-ons. Last fall, DenTek Oral Care attached individually wrapped dental floss picks to 570,000 popcorn bags in 100 markets nationwide. "Floss sticks are really handy if you're eating popcorn and you get a kernel stuck," says A.J. Holt, a marketing specialist for the company.
The bag ad said, "Don't you just hate it when popcorn gets stuck in your teeth?" It included a coupon for $1 off any package of DenTek Floss Picks.
Screenvision's Kearney says consumers will see more creative advertising in the future at the concession stand: "There's plenty of mileage left in the good old-fashioned popcorn bag."
NEW & NOTABLE
Scare those cavities away.
For parents whose biggest Halloween fear is fat dental bills, here's a marketing twist: Coax your kid to sell his or her holiday loot to the dentist.
In a move spearheaded by Middleton, Wis., dentist Chris Kammer, some 150 tooth docs nationwide will pay $1 for every pound of wrapped, "fun size" Halloween candy turned in on Nov. 1. Their goal: collect 1 million pieces of candy — about 33,300 pounds.
The treats won't be trashed — they'll be shipped to armed forces members in Iraq. What about the soldiers' dental health? "These troops are getting shot at, and their lives are on the line every day," says Kammer. "If a little piece of candy can give them a moment of joy, I'm all for it."
MediaPost.com: Silver Screen Turns Golden, Cinema Has Boffo Ad Market
by Erik Sass, Monday, Oct 15, 2007 7:45 AM ET
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=69135&Nid=35250&p=226846
2006 WAS A BANNER YEAR for cinema advertisers, with the Cinema Advertising Council reporting 15% growth in revenues over 2005 to $455.6 million. And the medium is on its way to an equally successful 2007, according to executives from the two big cinema ad players, National CineMedia and Screenvision, who pointed to repeat business and the entrance of new advertisers.
Cliff Marks, president and chairman of the CAC as well as the president and chief managing officer of NCM, spoke for the industry as a whole: "Lots of new marketers and new categories are coming into the cinema space, obviously because they understand the appeal of sight, sound and motion." Established categories like automotive, consumer electronics, and military recruiting are being joined by wireless and telecom advertisers, insurance companies, and financial services, including credit cards.
Another big category that's just beginning to break is retail and packaged goods, said Marks and Matthew Kearney, the president and chief executive officer of Screenvision. According to Kearney, after Old Navy adopted cinema advertising last year, other retailers like JCPenney began to express interest, and more big retail names are coming in the near future. Kearney also said Screenvision is making its first deals with insurance companies, with Allstate and GEICO on board (the famous cavemen will be appearing in Screenvision pre-shows shortly).
A key driver of growth has been the expansion of both companies' digital networks for serving ads to movie screens, replacing cumbersome and time-consuming analog tape reels or slide shows. David Kupiec, executive vice president of sales and marketing for National CineMedia, estimated that "90%-92% of our screens are now on the digital network," while Kearney said slightly more than half of Screenvision's partners are hooked up. However, Screenvision's total number is somewhat higher, as it's also using digital systems installed by cinema owners themselves for showing feature films.
The executives also pointed to the attractive demographic reached by cinema advertising: audiences skew younger, better-educated, and more affluent than the population at large. The latest edition of Arbitron's "Cinema Advertising Study" found that 71% of teens ages 12-17 and 61% of adults 18-24 reported going to the movies in the last month. Overall, cinema advertising reaches 53% of adults ages 18-34. Meanwhile, adult moviegoers are 35% more likely than the population at large to have an annual income over $75,000.
Silicon Alley Insider: Pre-Movie Ads In Theatres Now $450 Million Business
Pre-Movie Ads in Theatres Now $450 Million Business
Henry Blodget | October 15, 2007 8:38 AM
http://www.alleyinsider.com/2007/10/premovie-ads-in.html
In-theater ads hit $456 million in 2006, up 15% from 2005, says the Post, citing a report by the Cinema Advertising Council. For perspective, this is about the size of Viacom's "digital" revenue. The head of the council, Cliff Marks, who also happens to be head of sales for the public play in the sector, National Cine-Media (NCMI, see below), says that the introduction of digital projectors is helping spur adoption, as advertisers no longer have to burn ads onto film.
Some theaters have also apparently realized that showing ads after movie start-times is annoying and don't do it (other than interminable slates of movie previews, of course, which audiences have forgotten are ads).
National Cine-Media (NCMI) is growing faster than the industry, with revenue up 47% to $84 million in Q2 ($340 million run rate). The stock has been flat since last fall's IPO.
Media Life: Lights, Camera, Greenbacks: Movie Ad Revenue Rises
Lights, camera, greenbacks: Movie ad revenue rises
http://www.medialifemagazine.com/artman2/publish/News_shorts_31/index.asp
Last year may have been a down one at the box office, but for cinema advertising, it was a blockbuster. According to the Cinema Advertising Council’s new report, in-theater advertising revenue jumped to $456 million last year, a record total and up 15 percent from 2005’s $395 million. That includes in-theater display advertising as well as the traditional on-screen advertisements that these days air for 20 minutes or so before a feature begins. The report finds that nontraditional cinema advertisers such as retailers contributed to some of the rise, but technology also deserves credit. Ads have become less expensive to air and format before movies with the increasing usage of digital projectors.
Jack Myers.com: Ad Spending In Cinemas Up 15% For 2006.
Exclusive to JackMyers.com!
Ad Spending In Cinemas Up 15% For 2006.
Today The Cinema Advertising Council, a national non-profit trade association, released its report on cinema ad revenues reporting that industry revenues among members grew by 15% to $455,661,000 in 2006.
In September Jack Myers Media Business Report forecast growth in nontraditional media projecting cinema advertising growth for 2007 at 15%, 2008 growth at 17.5% and 2009 growth at 12.5%.
President and chairman Clifford E. Marks noted, "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. […] 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.’"
Contact Music.com:
THEATERS SELLING ADS LIKE POPCORN
http://www.contactmusic.com/news.nsf/article/theaters%20selling%20ads%20like%20popcorn_1046718
Revenue from in-theater advertising rose more than 15 percent to $456 million from $395 million a year ago, according to a study by the Cinema Advertising Council and reported in today's (Monday) New York Post. Reporting on the results, the newspaper observed, "Advertisers eager to reach an audience stuck in their seats are buying up the time in between shows, making it one of the fastest-growing ad categories." The Post quoted CAC Chairman Cliff Marks as expressing the belief that moviegoers are becoming "more accepting" of screen advertising. A recent Arbitron poll indicated that two-thirds of moviegoers "don't mind" the ads.
MarketingCharts.com
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).
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.
Oct 15-07
Film Journal International--Screen Advertising And Alternative Content Big Rollout
Digital Technology Lures New Screen Advertisers.
"What's new and exciting in cinema advertising?"...
Other Advertising Magazine--Lights! Camera! Interaction!
Read Ann Cooper's article from Other Advertising Magazine. Click the link above to download the article.
Film Journal International--Leveraging The Cinema Experience Advertising Council Promotes Movie Theatres
Digital Cinema Report-- Cinema Advertising Reached $600 Million Mark In 2006
Digital Cinema Report--Cinema Advertising Names 2006 Creative Excellence Award Winners
The Cinema Advertising Council has named the winners of its 2006 CAC Creative Excellence Awards. The annual awards recognize high-quality, entertaining advertising that has been showcased in movie theatres during the past year, on a national, regional and local basis. In addition to honoring the top on-screen cinema advertising spots and the top integrated marketing campaigns, new award categories were added this year to recognize long-form advertising and digitally animated still advertising in cinemas.
NY Times--Stuart Elliott's Webdenda Reports On 2006 CAC Creative Excellence Winners
“Happiness Factory,” a commercial for Coca-Cola Classic, was the big winner at the 2006 Creative Excellence Awards sponsored by the Cinema Advertising Council, New York. The spot, by Wieden & Kennedy, Portland, Ore., was named the top national or regional ad to appear last year in movie theaters. A version of the commercial also appeared during Super Bowl XLI in February.
Advertising Age Magazine: Cinema Ads Should Enhance Movie Theater Experience
NEW YORK (AdAge.com) -- Spider-Man, Shrek and Harry Potter aren't the only familiar names movie fans will get reacquainted with on the big screen this summer. An increasing amount of blue-chip brands are making movie theaters a standard part of their overall media plans, having made cinema marketing a $600 million business in 2006.
Shoot Online--Aero Film Seeks Out Big Screen Spot Work
SANTA MONICA, Calif., March 16, 2007, --- Aero Film has formed a production team dedicated to the development of advertising intended specifically for big-screen cinema. The Santa Monica-based commercial production company, headed up by partner/president Skip Short and partner/executive producer Lance O'Connor, maintains a directorial roster that includes Ken Arlidge, Henrik Hansen, Klaus Obermeyer, Brent Jones and Nelson McCormick.
Just last month, Aero Film's "National Guard/Citizen Soldier" (directed by Obermeyer) was nominated by The Cinema Advertising Council (CAC) as an entry in the CAC's 2007 Creative Excellence Awards which recognizes high-quality, entertaining advertising messages showcased at the movies. The spot was nominated in the Top Integrated Cinema Advertising Campaign category.
NY Post: Big Screen Stars Are Made
March 13, 2007 -- After getting plenty of television exposure, "American Idol" runner-up Katharine McPhee is turning to the silver screen to launch her self-titled debut. Read more...
Media Life Magazine: Movie Theater Spots Earn A Thumbs Up
Arbitron study finds most patrons don't mind ads.
Hollywood Reporter: Preshow Ads Hitting Their Spots
Radioink.com Covers Arbitron Cinema Advertising Study
According to The Arbitron Cinema Advertising Study 2007: “Making Brands Shine in the Dark,” to frequent moviegoers (people who attended more than five movies in the past three months) commercials before movies are more acceptable than commercials on television. Over half (53 percent) of frequent moviegoers find advertising before the movie to be acceptable versus 46 percent who find television advertising to be acceptable.
Mediaweek.com--Arbitron Cinema Advertising Study 2007: Moviegoers Find Pre-Film Ads More Acceptable Than TV Ones
Mediaweek.com.
Frequent moviegoers find commercials that air prior to movies more acceptable than ads on television, according to a new study from Arbitron. More than half of frequent moviegoers (those who attended more than five movies in the past three months), or 53 percent, find advertising before the movie acceptable compared to 46 percent who found TV ads more acceptable.
Film Journal Int'l: Global Cinema-advertising Revenues For 2005 Are Expected To Reach US$2 Billion
Global cinema-advertising revenues for 2005 are expected to reach US$2 billion, reports Cheryl Wannell, general manager of the Screen Advertising World Association (SAWA). Better yet, “most surveys that came back were pretty optimistic about 2006” as well. “The forecasts seem to be steady growth, probably above total ad markets.” The industry is “relatively healthy.” as screen advertising “is still able to set itself apart from the rest of advertising due to the unique nature of cinema.”
Wall Street Journal: Box Office Bounty Stirs Deals
The Financial Express: In-theatre Advertising And Brand Promotions Are Bidding For The Front Seat In Multiplexes
Los Angeles Business Journal: Pre-Film Ad Sales Turning Into Blockbuster For Theatres
NYTimes.com: Stuart Elliott's Webdenda
Media Life Alternative Media Report: Blockbuster Growth For Cinema Ads
BrandWeek: Movie House Ad Spending Rose In '05
Adweek.com: 2006 Cine Ad Winners
Media Daily News: Chanel Tops Awards For New Media Channel: Cinema
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