Regal CineMedia Corp., the media arm of theatre chain Regal Entertainment Group, partnered with youth advertising agency Alloy Inc., New York, to launch an in-theatre marketing network called Alloy Out-of-Home Entertainment Network.
The 50-50 equity partnership requires Alloy’s 360 Youth media marketing division to install custom interactive kiosks, restroom media panels and backlit poster cases in Regal Entertainment brands that include Regal Cinemas, United Artist Theatres and Edwards Theatres.
The rollout starts with 42-inch plasma-screen kiosks connected to the RCM Digital Content Network and 150 backlit ad panels initially in 50 theatre lobbies in the top 25 metropolitan areas where Regal Entertainment has a presence.
Another 550 backlit ad panels in 150 theatres and more than 2,600 restroom panels in all 545 theatres will complete the effort. Event marketing and sampling programs also are planned.
360 Youth is in charge of field operations with the lead role in sales and marketing the new media space.
Regal Entertainment, New York, is the largest theatre chain in the United States. It has 6,020 screens in 545 theatres located in 39 states.
Alloy’s 360 Youth claims it has the nation’s only in-school and on-campus ad network, reaching 20 million students annually. The agency has more than 75,000 displays in elementary, middle school, high school and college campuses nationwide.
Alloy recently bought InSite, a leading indoor media firm. The acquisition brought with it more than 13,000 displays in 3,000 bars, clubs and restaurants nationwide.
The Alloy Out-of-Home Entertainment Network debuts a month after the Cinema Advertising Council reported ad revenue in U.S. movie theatres increased 37 percent last year to $356.1 million, from $259.3 million in 2002.
Such theatre ad sales — the fastest among all media categories — were the result of theatre owners increasingly selling space to marketers looking to aim ads at moviegoers.
Regal CineMedia, Screenvision and National Cinema Network last year founded the Cinema Advertising Council. The three chains’ parent companies operate 34,490 screens. Their combined theatre ad revenue last year was $315.1 million, up 48 percent from $212.3 million in 2002.