Cinema Advertising Council Reports Record Ad Spending In 2013

Gail Chiasson, North American Editor

The Cinema Advertising Council (CAC), a U.S. national non-profit trade association, held its annual meeting at CinemaCon today, Mar. 26/14, at which the CAC announced record cinema advertising industry revenues in 2013 – up 6.5% to $677,957,000 compared to $636,404,000 in 2012, markingthe fourth consecutive year of $600 million or higher.

cac_logoCAC membership also gathered to discuss key industry issues and goals for 2014, with the theme focused on the potential that cinema advertising brings to brands targeting Millennials – a demographic that is harder to reach due to media fragmentation across screens of all sizes.

This is reflected in a new trade campaign also announced today, using the tag line ‘Movies Never Get Old’. It will be launched later this spring when CAC members NCM Media Networks and Screenvision – along with many TV networks and digital content companies – unveil their upfront presentations to buyers and planners. (Screenvision’s upfront presentations will begin April 2 in New York, with events in Los Angeles, Detroit and Chicago the next evening, while NCM Media Networks once again presents during broadcast upfront week, with a May 14 event in New York.

“A recent New York Times column talked about a ‘veritable orgy of advertising’ tied to big event TV, which fittingly began with the Golden Globes and ended with the movie industry’s most-watched award show, the Academy Awards, and attracted an estimated $1.5 billion in spending,” says Katy Loria, CAC President and chairman. “CAC believes that every weekend at the movies is a big event, and the line-up of new releases coming up in 2014 drives that point home.

“2013 was the highest grossing box office year in U.S. history, at $10.9 billion, with 34.7 percent of moviegoers being in the coveted 18-34 demographic. In fact, while the media marketplace has experienced unprecedented fragmentation, the box office has averaged more than $10 billion and 1.35 billion attendees over the past five years.

“Marketers recognize the power of cinema as a complement to TV through which a younger audience can be reached – especially on weekends – and we plan to accentuate that throughout the year as we look to bring even more new brands on board.”

The ‘Movies Never Get Old’ campaign will begin running in the coming weeks, with ads initially placed in leading advertising industry trade magazines and websites, and supported by public relations efforts and CAC members’ social media teams. It will emphasize the youthful median age of moviegoers (30.5), the freshness of upcoming movie releases, and that moviegoing is the #1 leisure activity for Millennials, a hard-to-reach group for brands otherwise relying on an ever-fragmented TV and online marketplace.

The 2013 CAC Revenue Report, which, as mentioned, showed that cinema advertising was up 6.5% to $677,957,000, noted that this was the highest cinema advertising revenue since the CAC began measuring it in 2002.

“This growth is a result of more new brands moving into cinema, the unique power of the movie theatre as a venue for creative, engaging advertising, and a movement by agencies to a more video-neutral approach that places cinema alongside TV and online platforms,” says Loria. “We are optimistic about this revenue momentum, and the direction the marketplace is headed with a strong start to 2014 as we enter upfront season.”

A total of 93 new brands advertised at the movies in 2013 – with top growth categories being Automotive, Consumer Electronics, Consumer Products, Retail/Apparel, Television and Travel & Leisure. CAC sees this as a powerful trend as advertisers continue to see cinema as a place where they need to be to complement their TV and online video buys and generate incremental reach.

Regional/National spending once again made up the vast majority of cinema advertising revenue, 78.3%, with spending up 5.7% to $530,569,000 from $502,070,000 in 2012. Meantime local revenue, accounting for 21.7%, grew 9.7% to $147,388,000 in 2013, up from $134,334,000 in 2012.

On-screen revenue in 2013 was up 6.2%, to $624,153,000 in 2013, from $587,473,000 in 2012, with 2013 off-screen revenue growing 10% to $53,804,000 from $48,931,000 in 2012.

The CAC Report is based on data independently tabulated by Miller, Kaplan, Arase & Co. LLP from CAC members, which make up approximately 90% of all cinema screens and box office admissions in the U.S.

The Cinema Advertising Council is a national non-profit trade association founded in 2003 and serving cinema advertising sellers, the theatrical exhibition community and the advertising community, acting as a central source of information for the industry. CAC members have generated $600 million or higher in cinema advertising revenue for four consecutive years, with more than $5.98 billion spent on- and off-screen since the CAC began tracking revenue. In addition to representing cinema advertising companies that account for 34,407 U.S. cinema screens, or approximately 90% of U.S. cinema screens and 2011 Box Office admissions (based on 39,662 total screens), the CAC’s membership is also comprised of companies that provide services and products to the cinema advertising industry.

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