Skip to main content

Cinema Advertising is on Track for $1 Billion

Cinema advertising could be a $1 billion business in a few years, National Association of Theatre Owners president John Fithian said Thursday at the Cinema Advertising Council's second annual Marquee Marketing at the Movies event.

"Patrons are not just comfortable with the preshow, they actually like it," Fithian said at the gathering designed to entertain and rally Madison Avenue a week before it goes through the broadcast networks' annual upfront presentations.

Last year, Fithian said, cinema advertising accounted for $500 million in revenue for theater owners, ranking third behind the core revenue streams of ticket sales and concessions. With total year-to-date revenue for theaters up over last year, advertisers and theater owners are optimistic that the medium's growth momentum will continue.

Ironically, when viewed from a theatre owner profit margin perspective, the sequence is very different -- concessions are most profitable, followed by advertising and lastly movie ticket sales.

Popular posts from this blog

Why GenAI Investment will Double in 2024

In 2024, every business can be a technology-driven business. The quest for business technology leadership skills, and digital transformation, will gain new momentum as more organizations seek ways to drive net-new digital growth. Large enterprises will invest more than $19.4 billion worldwide in Generative Artificial Intelligence (GenAI) solutions in 2023, according to the latest market study by International Data Corporation (IDC). This spending, which includes GenAI software as well as related infrastructure hardware and IT or business services, is expected to more than double in 2024 and reach $151.1 billion in 2027 -- that's with a compound annual growth rate (CAGR) of 86.1 percent over the 2023-2027 forecast period. Artificial Intelligence Market Development Despite the recent IT headwinds in 2023, business leaders accelerated their exploration of GenAI solutions to help boost their digital business transformation. "In 2024, the shift to AI everywhere will enter a critic