PMAR 2024: Cinema Advertising To Witness 35% Spike In 2024

EE News Desk Feb 16, 2024

As per the recently released Pitch Madison Advertising Report (PMAR) 2024, cinema advertising is projected to hold a 0.9% share in the total traditional Advertising Expenditure (AdEx) in 2024, amounting to Rs 1,047 crore. This indicates a substantial 35 per cent annual growth for the cinema advertising sector.

Despite being the smallest medium in AdEx, cinema has shown notable progress since the post-Covid period. In 2022, its share in total traditional AdEx was 0.6 per cent, with advertisers allocating Rs 568 crore. The year 2023 witnessed a significant 36 per cent surge, reaching Rs 776 crore and capturing a 0.8 per cent share in the total traditional AdEx. However, on a global scale, cinema's share of the AdEx is expected to be only 0.3 per cent.

The report highlighted that, given the eagerly awaited releases and a resurgence of audiences in theaters, advertisers have a valuable opportunity to harness the impact of large screens, ensuring 100 per cent attention to effectively convey their brand narratives.

Notably, for blockbuster films such as Animal or Pathaan, industry experts revealed an extension of the ad schedule from the usual 10-15 minutes to 20 minutes, as told to exchange4media. Additionally, there were numerous instances of brand integrations within movie content.

Gautam Dutta, Co-CEO of PVR INOX, mentioned earlier about cinema advertising, "As we reflect on the journey of PVR INOX throughout 2023, the resounding success of blockbuster movies has been the driving force for the advertising business. The stellar performance in H1 FY24, was underlined by a commendable 17 per cent increase in advertising revenue on a year-to-year basis. We are nearly at par with pre-pandemic levels.”

Rahul Puri, Managing Director, Mukta A2 Cinemas, observed that the cinema industry has successfully bounced back from the impact of the OTT boom. “In 2023, cinema players experienced a notable surge, overcoming challenges posed by the OTT sector. Ad rates have seen a positive shift compared to the previous year, aligning with the success of back-to-back hits. The increased admits and footfalls have enhanced the value proposition for advertisers.”

Offering a contrasting viewpoint, Veena Sequeira, Vice President of Miraj Entertainment, expresses that while brands recognise the significance of the medium, they remain prudent in their approach towards investment. “Until 2019, brands used to make yearly deals, now they only invest in major hits or large-scale movies. As experiential marketing gains prominence in 2024, brands are actively engaging in strategies to connect with their audience and become a part of their social media narratives. Recognising this trend, cinema theatres are evolving into venues for brands to host activities and initiatives, ensuring a memorable presence in the audience's experiences.”