Coming Subtractions: Cinema Ad Revenues Slow

Revenue from advertising in U.S. movie theaters jumped 5.8 percent last year, the smallest increase in the seven years that such statistics have been tracked.

Total cinema advertising revenues last year were more than $571 million, compared to almost $540 million in 2007, according to a report released today by the Cinema Advertising Council (CAC). However, movie advertising revenue increased by 19 percent in 2007 and by 15 percent in 2006.

Cinema advertising in 2008 broke down as 90 percent on-screen ads and 10 percent consisting of samplings, lobby-based ads, audio programming and concession promotions. The CAC, established in 2003, is a nonprofit trade association that serves cinema advertising sellers, the theatrical exhibition community and the advertising community. CAC members account for more than 82 percent of U.S. cinema screens.

The uptick, albeit slight, in cinema advertising revenues, compared to plunging advertising in more traditional media, means moviegoers can expect no relief from the high-decibel cellphone provider and fast-food company commercials that precede movie trailers and feature presentations. Don't rush that Raisinets vs. Gummy Bears decision--you won't miss a thing.