Movie theaters increase on-screen commercials

By Meg James
Los Angeles Times

HOLLYWOOD — This Hollywood love story has only just begun: advertisers' affair with the big screen.

On-screen commercials in movie theaters, already among the nation's fastest-growing advertising segments, are expected to mushroom even more in the next few years, an industry group announced yesterday.

Last year, an estimated $356 million was spent on ads in cinemas, up 37 percent from the previous year, according to the Cinema Advertising Council, which was formed last year to promote movie theater ads.

The trade group said its members took in $315 million for on-screen ads last year and an additional $38.4 million in advertisements in theater lobbies and other promotions. The group represents owners of some 25,000 screens, and nearly all of the theaters that accept advertising.

Half a century ago, advertisers often pitched to customers in darkened cinemas. But in the 1950s television became the vehicle of choice. TV advertising has grown into a nearly $60-billion-a-year business.

But with more than 200 TV channels and the threat of personal video recorders that can zap commercials, advertisers are looking for some sure-fire bets and returning to the theaters.

"The biggest, most sophisticated advertisers that have traditionally used TV, press and radio are turning to the cinema," said Matthew Kearney, the group's president. "Advertisers are trying to find ways to attract younger people, and the best place to find the younger demographic is in cinemas."

The top national advertisers included candy makers, media companies, the automotive industry and the military.