CUBIERTAS CINE - Arce Media

Digital Cinema Advertising:
While Screenvision maintains
an edge over NCM in theatres,
screens and admissions, NCM has
deployed more digital screens.
Screenvision plans to have
7,500+ digital screens by the end
of 2007.
Theatres/Screens Screenvision NCM
Theatres 2,363 1,118
Screens 15,252 14,131
Admissions 51% 49%
Digital Screens 4,000+ 11,500+
% of Screens Digital 26% 81%
The Advantages of Digital Cinema:
Digital delivery of spot media has revolutionized
cinema advertising. While reels of rolling stock are
still printed, assembled, shipped or trucked to thousands
of screens nationwide, a growing number of
theatres receive their ads via satellite link-up.
Naturally, this technological progression offers
numerous advantages over traditional rolling stock.
They include:
• Cost: With digital cinema, advertisers are no longer
required to supplement their $500,000 to
$1,000,000 media spend with an additional
$75,000 to $100,000 in rolling stock reel production,
duplication and distribution charges. These
charges often served as a disincentive to purchase
cinema, particularly when the client was new to the
marketplace. Digital also creates cost savings for
Screenvision US’s bottom line, because marketplace
dynamics require that we “roll-in” a large portion of
the production charges to remain competitive on
analog pricing.
• Long-form Advertising: With little or no production
cost, long-form advertising becomes more
cost-efficient for advertisers working beyond the
traditional :30 and :60 spots. These clients are
required to pay higher CPMs (based on a :30 equivalization)
for their longer ads but they no longer
have to shoulder the higher production costs.
Before digital cinema, the costs for producing a 20minute
preshow were prohibitive, as networks like
Screenvision and NCM had thousands of screens
with dozens of ads. With the advent of digital,
these costs are a fraction of their
prior levels. Digital preshows are
now one of the fastest-growing
distribution platforms for longform
advertising or infotainment.
In addition, these preshows offer
more inventory for spot advertising
which translates to higher
revenues.
With the advent of
the internet, iPods,
DVRs, etc., the
marketplace is
focused on digital
delivery of
advertising
A growing number
of theatres receive
their ads via
satellite link-up
• Lead times:
In the analog world, advertisers
are asked to submit their
spots to our operations department
four weeks before the start
of their flight to allow sufficient
time for conversion, duplication
and distribution. In the digital
world, creative can be ingested
and sent via satellite to thousands of screens in a
matter of hours. In addition to the cost savings
outlined above, these advances offer cinema a comparable
timeline to TV where spot creative need
only be delivered on the air date. In short, agencies
do not have to step-up the development of their
creative to meet early cinema deadlines.
• Customization, Flexibility and Compliance:
Currently, our analog network allows for mid-flight
switch-out of spots, but these adjustments mostly
occur on non-composite reels -- i.e. reels where different
spots are manually attached by the technicians
at the theatre, not the duplication house -and
they incur higher production charges and lower
compliance. With a digital system, spots can be
switched in and out with ease and they can even be
delivered before a single film across the nation, not
just in front of all the films in a given rating.
Moreover, the digital system ensures that the advertising
runs when it’s supposed to and Screenvision
is less reliant on manual technicians to display the
correct reels. Superior compliance helps retain
clients.
• Marketplace “Buzz”:
With the advent of the internet, iPods, DVRs,
etc., the marketplace is focused on digital delivery
of advertising. Many of the agencies we work with
have digital strategy units who exclusively plan and
buy digital media. If cinema is to remain competitive
in a marketplace experiencing a proliferation of
out-of-home options for clients, it must employ cutting-edge
technology.
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