How did NCMI's advertising revenue trends shift in Q4 2024 compared to previous quarters?

National CineMedia's (NCMI) advertising revenue trends in Q4 2024 showed a notable shift compared to the previous quarters, reflecting both challenges and opportunities for the company.

1. **Decline in Total Advertising Revenue**: The most apparent shift was a decrease in total advertising revenue. Data from Q4 2023 showed a revenue of $90.9 million, while Q4 2024's revenue dropped to $86.3 million. This decline of 5.1% was primarily due to an unfavorable film slate and the overperformance of Taylor Swift's "The Eras Tour" in the prior year.
2. **National Advertising Revenue Decrease**: National advertising revenue fell by 10% year-over-year, amounting to $46.8 million in Q4 2024, compared to $51.8 million in the same period of 2023. This decline was driven by a 14.1% increase in utilization, which suggests that while the volume of ads increased, the average revenue per ad slot decreased.
3. **Local and Regional Advertising Revenue Decrease**: Local and regional advertising revenue dropped by 5% year-over-year, reaching $11.4 million in Q4 2024, down from $12.9 million in the previous year. This decline was attributed to lower contract sizes and reduced activity in certain advertising categories, such as government, electronics, and travel.
4. **Comparison with Industry Trends**: Despite the decline, NCMI's performance was better than expected, with revenue exceeding the consensus estimate. Additionally, the company's innovative advertising solutions, such as the Platinum ad unit and retargeting platforms, are gaining traction and contributing to revenue growth.

In conclusion, NCMI's advertising revenue trends in Q4 2024 were marked by a decline in total revenue compared to the previous year, primarily due to an unfavorable film slate and reduced activity in certain advertising categories. However, the company's strategic initiatives and innovative advertising solutions offer potential for future growth and improved revenue performance.