Cinema ads hit again, all thanks to box office hits

In a remarkable turnaround, the Indian entertainment industry experienced a triumphant resurgence in 2023, bidding farewell to previous disappointments and instilling renewed confidence in the realm of filmmaking. Notably, blockbuster hits played a pivotal role in this revival, propelling the industry to an all-time high revenue of nearly Rs 12,000 crore. This marked a substantial 15% growth compared to the previous year.

Reports reveal that cinema chains capitalized on the skip-free environment, leading to a surge in advertisements. Major hits such as "Animal" and "Pathaan" prompted an extension of the ad schedule from 10-15 minutes to an impressive 20 minutes, as experts learned from industry insiders. Additionally, the integration of brands into movies became a prevalent trend.

Gautam Dutta, Co-CEO of PVR INOX, reflected on the success of blockbuster movies as a driving force for the advertising business throughout 2023. The stellar performance in H1 FY24 showcased a commendable 17% increase in advertising revenue on a year-to-year basis, bringing the industry nearly on par with pre-pandemic levels.

Rahul Puri, MD at Mukta A2 Cinemas, highlighted the industry's recovery from the OTT boom. Despite challenges posed by the OTT sector, cinema players experienced a notable surge in 2023. Ad rates saw a positive shift compared to the previous year, aligning with the success of consecutive hits. Increased admits and footfalls enhanced the value proposition for advertisers.

Veena Sequeira, Vice President of Miraj Entertainment Ltd, echoed similar sentiments, characterizing 2023 as a comeback year for the entertainment industry. She noted Shah Rukh Khan's return, several movies entering the Rs 100-crore club, and smaller films performing well at the box office as contributors to this success. Sequeira highlighted an 18-20% surge in the marketing budget allocated to cinema advertising, expressing optimism for 2024.

As newer brands extend their reach to tier 2 and 3 cities, cinema advertising has become a gateway of opportunities. Beyond traditional sectors, diverse categories, including FMCG, telecom, e-commerce, ed-tech, BFSI, consumer durables, automobiles, apparel, accessories, jewellery, media entertainment, and real estate, are actively engaging in this medium.

Datta emphasized the extensive support from diverse advertising categories, listing partnerships with renowned brands such as Apple, Oppo, Cred, OnePlus, Facebook, WhatsApp, PepsiCo, Coke, Dyson, Manyavar, Kotak, Pepsi, Tata CliQ, Dettol, HDFC, Nippon, WOW, and others.

Sequeira provided a different perspective, noting that while brands understand the medium's importance, they remain cautious with investments. Brands are increasingly investing in major hits or large-scale movies. With experiential marketing gaining prominence in 2024, cinema theatres are evolving into venues for brands to host activities, ensuring a memorable presence in the audience's experiences.

Datta revealed plans to expand into the heartland of the country, reaching the interiors and providing brands with opportunities to connect with diverse audiences.

Meanwhile, Puri outlined innovative approaches in theatre ads to entice advertisers, including interactive and engaging formats leveraging technology for a more immersive experience. These initiatives aim to captivate audiences and offer advertisers novel ways to connect with their target market.