The Cinema Advertising Council released it 2006 annual report stating that in-cinema advertising grew by 15% in 2006 to $455.7 million. That figure can be broken down into two components: on-screen advertising and offscreen advertising (i.e., marketing done in the movie theater but not on the actual movie screens). 
On-screen advertising grew from $361.6 million in 2005 to $417.4 million in 2006, and offscreen advertising grew from $33.2 million in 2005 to $38.3 million in 2006. The study also shows that 70% of in-theater advertising is national and 30% is regional.
It looks like movie theater advertising is here to stay, particularly on-screen ads which are said to be more effective than television ads. A study conducted by TNS in 2005 showed that moviegoers are 44% more likely to recall an ad they saw in-theater than on television. With a fairly captive, targeted audience and in-theater ad placement prices not as high as many television ad placement prices, in-cinema advertising is becoming an integral part of many companies' marketing plans.
While I don't like in-theater ads as a moviegoer, as a marketer, I think they can be very effective. What do you think?
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