National CineMedia's Q2 2025: Dissecting Contradictions in Advertiser Confidence, AMC Impact, and Market Recovery

Advertiser confidence and budget flexibility, AMC relationship and revenue impact, advertiser sentiment and market recovery, local market expansion and Bullseye AI technology, and revenue growth and market conditions are the key contradictions discussed in National CineMedia's latest 2025Q2 earnings call.



Ad Revenue Performance:
- National CineMedia (NCM) reported $51.8 million in total revenue for the second quarter of 2025, with an adjusted OIBDA of $0.7 million.
- The decline in ad revenue was due to a challenging economic environment, cautious advertiser sentiment, especially in key categories like government, consumer packaged goods, and automotive, and a decrease in CPMs.

Programmatic and Self-Serve Growth:
- NCM's programmatic advertiser volume grew by more than 50% quarter-over-quarter, with approximately 70% of advertisers being new to NCM.
- The growth in programmatic and self-serve offerings was driven by the addition of new programmatic platforms and a strategic shift towards flexible, closer-to-campaign-date solutions.

Local Sales Priorities:
- Local and regional advertising revenue totaled $6.4 million in the second quarter, down from $9.8 million in the same quarter last year.
- The decline was attributed to reduced contract volume and smaller deal sizes across various categories, reflecting cautious advertiser sentiment in the broader marketplace.

Economic and Tariff Uncertainty:
- Economic and tariff-related uncertainties led to volatility in advertiser budgets and the withdrawal of several submitted budgets, impacting second-quarter results.
- Stabilization in the advertising market is beginning to emerge as brands regain confidence and adapt to ongoing tariff uncertainties, fostering early signs of recovery.