Thursday, March 1, 2012

Theater company looking for ways to grow ad revenue in 2012

Television broadcasters are already planning out its upfront for this fall’s programming. This year, National CineMedia (NCM) will be hosting one of its own.

According to MediaPost, the NCM upfront is an initiative to get some of the designated TV dollars from advertisers. Since the national sales for fourth quarter 2011 were down for the company, it is working on other opportunities to gain business.

Another point of revenue that NCM noted was that 2012 will be a heavy year for political advertising. Many advertisers that typically utilize television may get bumped out. In the past, political has not used a lot of in-cinema ads; therefore, NCM will be an outlet for those pulling TV dollars until the end of the elections.

While 3-D advertising is not a large part of NCM’s business, it is another avenue for growth. Namely, the cost per thousand (CPM) for a 3-D theater ad is an estimated 50% to 100% higher than traditional ads.

Overall, NCM’s ad revenue was down for national sales during 4th quarter in 2011, but the entire year saw a 1.8% gain. With the initiatives in place, NCM is looking for all growth in 2012.

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