Report Description

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.