Nielsen to adjust policy for cinemas

Nielsen to adjust policy for cinemas

Nielsen Company (Thailand), a leading media research and rating company, believes cinema advertising rates are exaggerated and is revising its price measurement to reflect real spending by advertisers.

The new measurement will solve the problem that many advertisers are dubious about inflated cinema ad rates and total spending on this media outlet.

With the fast growth of cinema ad spending in recent years, some media agencies who have spent big budgets on cinema advertising have questioned whether the ad rate is exaggerated from real spending.

An advertising industry source said Nielsen had agreed with two giant cinema operators, Major Cineplex and SF Cinema, and other related parties to provide ad rates without discounts every month.

After that, Nielsen will adjust its calculation method and release revised cinema ad expenditure. It will also revise ad rates last year and in the first four months of this year.

After the revision, cinema ad spending in 2012 will total 7.9 billion baht, down from a previous report of 12 billion.

The revised figure will represent growth of only 9% from 2011 compared with 67% growth before the new calculation. Cinema ad spending in 2011 was 7.2 billion baht.

For the first four months of this year, revised cinema ad spending will be 1.87 billion baht, down 12% from 2.13 billion last year.

The source said Nielsen's revision will affect overall ad industry figures for last year, cutting growth from 12.4% to 8.7%.

Kasikorn Research Center said cinema advertising is still growing due to the expansion of cinema operators upcountry. Total cinema screens this year will reach 813 from 631 at the end of last year.

Currently, 45% of cinema ad revenue comes from upcountry and 55% from Greater Bangkok.

Moreover, cinema operators have also revised their ad sale methods from theatre locations to packages ranging from three months to one year.

Operators are enjoying good audiences for popular movies.

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