Spending on cinema ads up; continued growth seen

NEW YORK (Hollywood Reporter) - Cinema advertising spending in the U.S. continues to grow at a rapid pace, jumping 18.5 percent to $539.9 million in 2007.

The latest data from the Cinema Advertising Council, whose members account for more than 82 percent of cinema ad revenue, shows 92 percent of total spending going toward onscreen commercials and 8 percent to other promotions in movie theaters.

On- and offscreen ad revenue in 2007 rose 18.5 percent each to $494.6 million and $45.3 million, respectively.

CAC president and chairman Stu Ballatt predicted that the industry's double-digit percentage growth path would continue "for the next few years at least."

He said a sluggish U.S. economy does not seem to slow marketers' willingness to put money into cinema promotions. For example, Ballatt cited increased activity across many sectors, with cinema ad spending by packaged goods and retail companies showing particularly strong growth during the past six to 12 months.

Asked about the effect of union strikes on cinema advertising, the CAC head suggested that the three-month Writers Guild of America strike that ended in February did not have a material positive or negative effect.

"SAG ripple effects are possible," Ballatt said of the looming threat of a Screen Actors Guild strike, "but we don't project a benefit or negative impact in the near term."

Reuters/Hollywood Reporter