Off-screen revenues from cinema advertising up 23.2% in 2018

The Cinema Advertising Council (CAC) of United States, the national nonprofit trade association for the cinema advertising industry, has revealed that revenues in 2018 among CAC members reached $781,190,000, surpassing $750 million for the third year in a row. This marks the fourth year in a row of national and regional revenue growth.

According to the 2018 CAC Revenue Report:

• National/regional sales, which made up 89.5 percent of all cinema revenues, grew 5.4% from $596,507,000 in 2017 to $628,835,000, marking the fourth straight year of national sales growth
• On-screen revenues for 2018 reached $718,756,000, growing 2.7 percent from 2017's total of $699,964,000
• After a 1.5 percent decrease in 2017, off-screen revenue increased 23.2 percent to $62,434,000 in 2018
• The top five cinema sales categories for the year were: Telecommunication, internet, and media; automotive; insurance and real estate; entertainment; and consumer electronics
• 185 new national or regional brands advertised in cinema in 2018

According to the CAC, cinema advertising continues to thrive and maintain its position as the ultimate premium video offering, despite other major media categories experiencing audience decline. Providing unmatched impact on a captive audience, engaging on-screen storytelling, and strategic technological advancements, the industry has capitalized on the stability of cinema to offer unparalleled value to advertisers.

Cinema advertising earnings have surpassed $750 million for three years running. This year also marks the fourth consecutive year of national sales growth, proving the continued significance of cinema advertising within the overall media industry. As of 2018, and since the CAC began tracking revenue in 2002, cinema advertising's spending has exceeded $10.2 billion.

These achievements are especially notable considering other media categories like broadcast advertising are on the decline. Media agency Magna estimates national TV broadcasting will fall 3 percent this year from 2017. In comparison, cinema advertising's year-over-year growth cements its standing as a leading video offering and leaves the industry well-positioned heading into the upfront season.

"We are thrilled to report yet another year of strong revenue growth," said Scott Felenstein, CAC President and Chairman. "2018 saw a new box office record of $11.8 billion in domestic sales, proving that the cinema industry and its engaged audience are more attractive to advertisers than ever. We are confident that the industry will continue on its growth trajectory to remain a stable medium and a superior advertising option, even as other traditional video mediums may experience a decline."

The CAC Report is based on data independently tabulated by Miller, Kaplan, Arase & Co. LLP from CAC members, which make up approximately 90 percent of all cinema screens and box office admissions in the U.S. In addition to accounting for national/regional and local sales, the report measures both on- and off-screen revenue.