The India cinema advertising
market is witnessing high demand owing to the rising box office collections,
innovative advertisement formats, high growth of regional content, and high advertisement
engagement is further expected to cater the market growth in the coming years.
India Cinema Advertising Market
Scope
Cinema advertising is the on and
off-screen branding that customers see in theatres, and it typically takes the
form of posters at the concession areas of movie theatres and a brief
audio-visual advertisement is played before and between movies.
India Cinema Advertising Market
Overview
India cinema advertising is
witnessing high demand and is expected to grow with a significant growth rate
in the coming years. According to the data provided by Bureau of Outreach and
Communication in 2022, India has around 31.52 lakh seats in around 8,700
screens across the country. Thus, with a large audience base the brands can
easily reach to target audience and increase their market share. Moreover,
cinema advertising offers advertisers the advantage of reaching a captive and
engaged audience. Moviegoers are typically receptive to the content shown on
the big screen, making it an effective medium for brand promotion. With a
diverse population and a wide range of movie genres, advertisers can target
specific audience segments based on language, demographics, and interests.
India Cinema Advertising Market
Drivers
High ad recall and engagement is
driving the Indian cinema advertising market as cinema advertising offers a
captive audience in a controlled environment. When people visit theaters, they
are more focused on the movie-watching experience and less prone to
distractions compared to other advertising mediums. This captive audience
ensures higher attention and engagement with the advertisements shown on the
big screen. Moreover, the cinema environment provides a larger-than-life
viewing experience with high-quality visuals and surround sound. This immersive
experience enhances the impact of advertisements, making them more memorable
for the audience. The combination of a big screen, powerful sound, and
comfortable seating creates a favorable atmosphere for ad recall and
engagement. Unlike television or online platforms where viewers can easily
switch channels or skip ads, cinema advertising benefits from a
distraction-free environment. Viewers are less likely to multitask or divert
their attention during the screening of ads; resulting in higher retention and
recall of the ad content. Furthermore, the cinema ads are typically shown
before the start of the movie as part of the pre-show content. This placement
ensures that the audience is present and actively waiting for the main feature.
Advertisements displayed at this time benefit from higher attention levels as
viewers anticipate the movie's start.
The Indian film industry has
been experiencing steady growth, with an increasing number of movies being
released and higher box office collections as in 2022, the India’s total box
office collection was around USD1.22 billion. This growth is driven by factors
such as a growing middle class, urbanization, and increased discretionary
spending, which in turn fuels the cinema advertising market.
India Cinema Advertising Market
Trends
Innovation in ad formats is an
important aspect of advertising to capture audience attention and deliver a
memorable and engaging experience. The use of 3D technology in cinema
advertising creates a more immersive experience for the audience. 3D ads can
grab attention and make a lasting impact, especially when the film itself is in
3D. moreover, interactive ads encourage audience participation and engagement.
For instance, PVR Cinemas introduced its most recent development in the field
of in-theater advertising in 2022. To increase brand enthusiasm, the company
created 270-degree on-screen experiential in-cinema advertising, with Maruti
Suzuki as the first advertiser to use this platform to debut the 2022 Maruti
Suzuki Brezza in theatres.
Regional cinema, produced in
various languages such as Tamil, Telugu, Malayalam, Kannada, Bengali, Marathi,
and others, has been gaining immense popularity and viewership across India and
in 2023, the South Indian Cinema industry generated USD77.63 billion. Audiences
have developed a strong affinity for regional films, leading to increased box
office collections and wider distribution of these movies. Regional cinema
provides a unique opportunity for advertisers to target specific regional
audiences with tailored advertising campaigns. By advertising in regional
movies, brands can effectively reach and engage with local audiences,
leveraging their cultural preferences and language-specific messaging.
Furthermore, regional film industries have witnessed significant growth in
terms of production quality, storytelling, and box office revenues. These
industries have also attracted notable talent, both in front of and behind the
camera. The growing popularity of regional films has resulted in increased
investment and a higher number of releases, providing more advertising
opportunities.
India Cinema Advertising Market
Challenges
Competition from digital
platforms is a significant challenge for the cinema advertising market in India
as digital platforms provide advertisers with advanced targeting capabilities,
allowing them to reach specific demographics, interests, and behaviors of the
audience. Advertisers can leverage user data and algorithms to deliver
personalized and relevant ads, which can be more effective in generating
engagement and conversions compared to traditional cinema advertising. Digital
platforms offer robust measurement and analytics tools, providing advertisers
with detailed insights into ad performance, audience engagement, and conversion
metrics. This level of transparency and data-driven decision-making is
attractive to advertisers as they can assess the effectiveness of their
campaigns in real-time and adjust accordingly.
In contrast, measuring the
impact of cinema advertising is relatively challenging and often relies on
indirect indicators like footfall data or post-campaign surveys. Digital
advertising often offers more cost-effective options compared to cinema
advertising. Advertisers can allocate their budgets more precisely, optimizing
their spending based on the performance of their ads. Additionally, digital
platforms provide flexible pricing models, such as pay-per-click or
cost-per-impression, which allow advertisers to pay only for the actual
interactions or views they receive. Digital platforms have a broader reach than
cinema screens. They can target users across various devices and platforms,
including smartphones, tablets, computers, and smart TVs. This accessibility
allows advertisers to reach a larger audience, including those who may not
frequently visit cinemas or live in areas with limited cinema infrastructure.
Recent Developments
- In May2023, PVR and INOX merged to form a
single entity namely PVR INOX Limited to improve margins through better
capital and operating expenses.
- In April 2023, PVR INOX introduced the
world’s first 30-minute trailer screening show to generate buzz around a
movie and draw audiences to theatres.
Market Opportunities
- Cinema provides a captive and engages
audience who are actively seeking entertainment. Moviegoers are likely to
be more receptive to advertisements shown on the big screen compared to
other media platforms. This captive audience offers a unique opportunity
for advertisers to create impactful and memorable brand experiences.
Moreover, the cinema environment offers a larger-than-life visual and
audio experience, allowing advertisers to create immersive and high-impact
advertisements. The big screen, surround sound, and high-quality visuals
provide a unique canvas for advertisers to showcase their brand in a
visually stunning and memorable manner.
- Cinema chains often cater to specific
audience segments based on factors like location, movie genre, or language
preferences. This allows advertisers to target specific demographics, such
as urban youth, families, or niche interest groups. Thus, advertisers can
align their brand messages with the preferences and characteristics of
these target audiences. Furthermore, India has a diverse and multi-lingual
population, and cinema screens across the country cater to regional and
local movie industries. This presents opportunities for advertisers to
target specific regional markets and engage with local audiences
effectively. Regional or language-specific advertisements can help create
a strong connection with viewers in those areas.