Nearly two-thirds of moviegoers who watched a film in a movie theater last month “do not mind the advertisements they put on before the movie begins,” according to a new report issued yesterday by the Cinema Advertising Council (CAC).
Teenagers (12-17 years old) are even more tolerant of ads, with 74% saying they didn’t mind them.
Cinema advertising revenues of CAC membership grew by 15% $445.5 million in 2006, up from $394.8 million in 2005. CAC members account for more than 81% of U.S. movie screens.
The CAC report includes revenue data for both on-screen cinema advertising–including commercials airing in advance of movie previews and the feature presentation–as well as off-screen revenues–including those derived from audio programming, sampling, special events, concession-based promotions and lobby-based promotions.
According to the report, on-screen advertising revenues increased 15% to $417.4 million in 2006 from $361.6 million in 2005, and off-screen revenues grew to $38.3 million in 2006, a 15% increase from $33.2 million in 2005.
The CAC research shows that consumers aged 12 and older are more receptive to cinema advertising (36%) than to other new and emerging media advertising platforms, such as Internet advertising (20%) and ads placed before DVD content (29%) or video games (12%).
The report also noted that moviegoers generally spend 24 minutes in the theater before the movie starts, and that 54% noticed advertising on the concession stand food and drinks regardless of whether or not they personally consumed any of the items. Lobby posters are noticed by 80% of attendees. Video programming in the lobby was noticed by 28%.
Growth in cinema advertising industry revenues in 2006 is attributable to increasing activity from advertisers across a broad spectrum of national advertising categories including: Food/Consumer Packaged Goods, Consumer Electronics, Educational Institutions, Telecom, Financial Services, Automotive, Government/Military, Internet and Entertainment/Media.
A national telephone survey was conducted with 1,010 randomly selected respondents age 12 and older between July 21 and Aug. 7, 2006.
The full report, “The Arbitron Cinema Advertising Study 2007: Making Brands Shine in the Dark,” is available online from www.cinemaadcouncil.org.
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