Arbitron Study Says Filmgoers More Receptive to Theater Ads

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Arbitron Study Says Filmgoers More Receptive to Theater Ads

By DARRELL SATZMAN

Staff Reporter

Audiences are increasingly receptive to advertising in movie theaters and tend to remember those ads better than advertising in other media, according to a new study by Arbitron Inc.

Overall, 66 percent of movie watchers said they didn’t mind pre-film ads, a percentage that increases with younger audiences. That compared with 51 percent of Internet users who found on-line ads a nuisance, according to the study. The product ads are distinct from movie trailers.

“It’s like cable, every medium goes through this phase where people are outraged by advertisements and then they get used to it,” said Pierre Bouvard, president of new ventures for Arbitron. “For advertisers, you’ve got a beautiful screen, no remotes, the lights are down and everyone is looking the same way.”

The study also points out that cinema audiences skew younger than television audiences, that frequent moviegoers watch less television than the general population, and that the average moviegoer is in his or her seat 13 minutes before the film starts a prime window for reaching them with on-screen advertising.

More than $800 million was spent worldwide on movie theater advertising in 2002, but only a fraction of that was spent in U.S. theaters, according to the study, which was based on a phone survey conducted by Arbitron and market data from Scarborough Research.

Most theater ad dollars are spent on-screen, although lobby displays and promotions, such as those in which logos appear on drinks and popcorn boxes, are becoming more common.

AMC Theatres has used on-screen slide presentations for 25 years, but spokesman Richard King said that since that chain began running filmed, or “rolling stock” ads four years ago, advertising has become an increasingly important revenue source.

“We’re always looking for ways to upgrade the presentation during the pre-feature period, which can be a 30-40 minute time frame at some theaters,” King said. “That may include bringing more commercial messages into play.”

But King said AMC is trying not to oversaturate customers with ads. Its current policy is not to exceed three minutes of filmed advertising, which must end before a film’s listed starting time, King said.

Bob Laemmle, owner of Los Angeles-based art house chain Laemmle Theatres, said his company earlier this year signed with Art House Marketing, which, as its name implies, finds ads targeted at non-mainstream theaters. Before that, Laemmle Theatres seldom ran on-screen ads.

“The type of advertising done at other circuits is wrong for us, but it’s not bad if it’s targeted to the clientele we have,” Laemmle said. “It’s been a good money-maker so far and the potential is there for it to increase.”

Rolling stock theater advertising rates run between $60 and $80 per thousand viewers, about the same as a high-profile billboard, said Sandi Hulstrom, vice president of Outdoor Services Inc., an agency that has purchased theater advertising for San Diego-based National University.

“It’s a pretty high cost per thousand but it’s pretty directed with high recall,” Hulstrom said.

For years, spots from the Los Angeles Times were the only ads at the movies stemming from arrangements between several chains and the newspaper for printed listings. But now they are just as likely now to see commercials from auto manufacturers, soft drink companies and apparel businesses.

Hulstrom said some additional growth was likely, but she added a cautious note. “It can only grow so much,” she said. “Right now they are testing the threshold of peoples’ patience.”




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