ADVERTISING
The low margins derived from ticket sales cause exhibitors to focus on other sources of revenue.nThe highest margin, and therefore the most attractive, is advertising. Since 2002, advertising revenues, and the time devoted to them at the start of every feature, has increased dramatically, climbing from $ 186 to $644 million. Exhibitors also generate revenue through pre-show and lobby advertising. Though this constitutes just 5 percent of exhibitor revenues, it is highly profitable (i.e., revenue with no direct monetary costs) and growing. Advertising revenues for exhibitors averaged $16,245 per screen. Audiences, however, express dislike for advertising at the theater. Balancing the revenues from ads with audience tolerance is an ongoing struggle for exhibitors (see Exhibit I0).