Reel Blog

In-theater advertising tops $500 million

In-theater advertising topped $500 million in 2007 – an 18.5% increase in revenue. According to Variety,

New figures just released by the Cinema Advertising Council, a trade org repping 82% of U.S. screens, show a hefty 18.5% gain in revenue to just shy of $540 million in 2007, up from $455.7 million a year earlier.

That revenue is significant for the mature, perennially product-dependent exhib biz because the vast majority of it goes directly to their coffers instead of being split with Hollywood.

Despite complaints that in-theater advertising is alienating audiences and driving disgruntled customers away, a 2007 Arbitron study found

that a majority of frequent moviegoers recalled specific ads and also did not mind having ads before the feature.

Adding more credence to that view is the remarkable track record of 2008 box office thus far. According to the AP:

A solid June lineup has pushed Hollywood ahead of last year’s record box office pace. Since the first weekend of May, domestic grosses total $1.46 billion, up 4.6 percent from 2007′s, according to Media By Numbers. Factoring in higher ticket prices, actual movie attendance this summer is up 1.6 percent.

2007′s summer box office set a record with more than $4 billion in ticket sales. This summer is outpacing it so far without the trhee $300 million thee-quels that 2007 could boast. YTD, box office is off 1%.