Cinema advertising revenue grew by 12.7 percent in 2010, according to an annual report released Monday by the Cinema Advertising Council.
The rise in pre-movie commercials comes despite a softening in the overall advertising market.
Total cinema advertising jumped to $658.2 million in 2010, compared to $584.1 million in 2009, the trade group announced Monday.
With the box office down more than 20 percent year to year, and traditional theatrical windows being challenged by the major studios, exhibitors are looking to in-theater advertising as a viable revenue stream moving forward.
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"Brands are trying and loving the sight, sounds and motion aspects of cinema. They're discovering that cinema advertising is an important part of their media mix," Cliff Marks, president and chairman of the CAC, told TheWrap.
The report was independently tabulated by Miller, Kaplan, Arase & Co. LLP.
For 2010, regional and national cinema advertising sales were up 13.9 percent over 2009, and now collectively account for more than 80 percent of the in-theater advertising market. Local cinema advertising grew 8.2 percent in 2010 and now makes up 19.8 percent of the total cinema advertising market.
Marks thinks there are still industries that haven't been sufficiently tapped.
"There clearly are categories that are not fully developed. There is a lot more opportunity for us to do business in retail, in tourism and travel, and in areas that have natural overlap such as quick service food like Wendy's or Taco Bell," Marks said.
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 delivered by lobby digital video and audio programming, sampling, special events, concession-based promotions and other lobby-based promotions.
On-screen revenues accounted 91.5 percent of total cinema advertising revenues and were up 10.8 percent year over year, while off-screen revenue was up 38.4 percent.
Top national cinema advertising categories in 2010 included auto, electronics, entertainment, financial, communications, consumer packaged goods, health & beauty, soft drinks, military and video games.