Cinema Advertising is Big Business, So Mergers are a Natural
Cinema advertising has always been an effective marketing tool for some advertisers, while for others they have yet to see the benefit of this unique form of media. When an advertiser hears the term "Cinema Advertising" automatically they think the slide that is shown on the big screen with the soothing music played in the background.
For many years that is exactly what it's been but companies like the National Cinema Network and Regal Entertainment along with new technology have changed the scope of how cinema advertising is perceived. At many theatres you can actually have a total digital experience from the time you buy your tickets to the time that you sit in your seat. With LCD screens in the theater lobby and digital advertisements replacing both slides and rolling stock, it's no wonder why both Regal and AMC Entertainment are on the hunt for more mergers and acquisitions.
The phasing out of slide and rolling stock advertising in cinemas across the nation and the progression to digital advertising puts the cinema advertising game in a new field. Making it more inviting for advertisers, entertaining for the patrons and above all giving advertisers potentially a greater return on their investment.
This just adds to the bottom line of the theater, more advertising means more profits, this is what will drive mergers in this industry. Cinema advertising is growing up and the companies that control the industry will reap the rewards that will follow.
They will no longer have to seek outside assistance to attract advertisers to their advertising platform, Regal and AMC have implemented this practice already and they haven't looked back. So now with AMC merging with Loews Entertainment and Regal Entertainment taking over the National Cinema Network, it just remains to be seen as to which one of these companies will be sinking their teeth into the Cinemark theater chain.
This can happen sooner than later as we enter into the summer months with the big holiday season to follow.
Louis Victor is the Executive Vice President of the firm New Age Media Concepts. His articles have been published in various marketing and advertising publications, both on online and print.
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