What is Cinema Advertising?
Cinema advertising is one of the most interesting new age advertising options and its rates are one of the lowest among non mass media. While cinema advertising has been in place for almost 30 years in the history of advertising in India, it is the last few years that cinema advertising has become popular among the advertisers.
Movies have an edge to them and have a greater impact on the audience, as they have a larger-than-life aura and leave a lasting impression on the audience. The reason that cinema ads work the most is because moviegoers stick to their seats while the ads are displayed as they wait for the movie, and are attentive towards the silver screen.
Why Cinema Advertising?
The growth of in-cinema advertising is directly related to the growth of the cinema industry in India. The growth of the Indian cinema industry has been phenomenal in the last few years, as the number of films have increased. The format of screening, that is multiplexes is also an additional advantage to cinema advertising. Here are some interesting facts about in-cinema advertising;
Indian cinema advertising market stood over $ 98 million in 2017 and is projected to grow at a CAGR of more than 25%, to reach $ 381 million by 2023, predominantly due to the growing number of multiplexes across India.
Multiplexes are increasingly helping advertisers to reach a larger audience across the country. Moreover, the Indian film industry is witnessing a significant growth with the rising number of films being produced each year, thereby further increasing scope for cinema advertising. Additionally, technological developments such as use of VFX is anticipated to aid the growth of India cinema advertising market in the coming years.
Facts About Cinema Advertising
Film revenue received from in-cinema advertising in India from financial year 2014 to 2020, (estimates till 2024)
Research report by Ormax Media (Media consulting firm)
According to the report, in 2019 14.6 Cr Indians went to a theatre at least once to watch a film. Therefore, India’s theatrical reach is 10.5% of its population. These 14.6 Cr people contributed to a footfall of 103.0 Cr in 2019, i.e., an average of approx. 7.1 films per capita (in all languages).
Urban India accounts for 58% of the theatrical reach, whereas rural India contributes to 69% of India’s population. About 52% of the male population in India contributes to 61% of the theatrical space. The average age of a movie-goer in India is 27.5 years.
The most penetrated zone is South India, with 22% of the population visiting a theatre in the year 2019. Because of which, it has a contribution of 44% to the theatrical space.
Top 4 languages in which movies are watched in Indian theatres:
- Hindi: 51%
- Telugu: 21%
- Tamil: 19%
- Hollywood (including the dubbed versions): 15%
An average theatre-goer in India watches movies in 1.4 languages, with Maharashtra (1.6) and Kerala (1.7) that is, the highest multi-language incidence.
Effects of Pandemic and Revival of Movie theatres
In the year 2019, cinema experienced an unprecedented decline of 70.4% due to the pandemic which prompted a scenario of rethinking in the film industry.
However, in 2020 the ad revenue generated from cinema advertising all over India was over 10 billion Indian rupees. According to experts this amount is estimated to reach up to approx 19 billion Indian rupees by the end of 2024. This indicates that movie theatres are growing steadily and in-cinema advertising is a great option for advertisers.
Due to the pandemic movie theatres faced a massive decline, but it is expected to get back to normal in the next fiscal as COVID cases in India are in control and vaccination too is catching pace. Since brands have been trying to get back into action, they will soon start advertising in cinemas, which will lead to a V-shaped recovery.
Currently, the revenue of in-cinema advertising in India is around Rs 1050 crore, and is growing steadily.
Rahul Puri, MD, Mukta A2 Cinemas said that the audience have missed the experience of the big screen and it’s a great opportunity for advertisers to use this medium to advertise their products. He also added that the cinema ad revenue may grow by 10% in 2021 compared to 2019.
Cinema is considered to be the staple medium of entertainment for the Indian consumers and it also offers a captive audience which means better engagement opportunities.
The figure below represents the location preference of the consumers for watching new movies post-COVID 19;
What are the benefits of cinema advertising?
The cinema industry has been thriving for a long time now and is still growing because of its magic to encapture the crowds. In-cinemas advertising can be beneficial for the growth of your business due to its hyperlocal reach. Here are some of the benefits of in-cinema advertising;
- Captive Audience: Cinema is a place where advertisers can get captive audiences who have nowhere to go but wait until the movie starts. Usually, moviegoers have the fear of missing out even the first few seconds of the movie, so they remain attached to their seats and sit through the cinema ads and the trailers. Many theatres even ask the audience to switch off their mobile phones, so the audience has no choice but to keep their eyes on the screen. In-cinema advertising is not something that the audience can skip with a fast-forward button hence advertisers can get an attentive audience for their products.
- No Distraction: Being in the theatres means there will be no distractions or interruptions as such, and generally movie-goers do not multitask. When it comes to other forms of media, the audience may get distracted. However, in cinema advertising, the audience is more inclined to watch the ads and also get the full impact of the message. Due to this reason several big businesses invest in cinema advertising and tap for the box office strength.
- Better Receptive Attitude: The audience in the movie theatres have a more responsive and receptive attitude towards the silver screen. Therefore, investing in cinema advertising can be a great move for advertisers as they can receive a high recall rate. Movie theaters provide such an immersive atmosphere which creates an attentive and engaged crowd, so they are more likely to remember the ads they see.
- Targeted Demographic audience: Cinema advertising has a hyperlocal reach, and has the capability to offer to a targeted demographic audience. Through in-cinema advertising businesses can target customers within their reach. For instance, a restaurant can target customers within a 10-mile radius as they will be its prime targets. Most of the movie-goers belong to the age group of 16 to 44 years, companies can use this vital information to create their video content.
- Cross promotional marketing: Movie theatres are a perfect place to initiate crossover marketing and several other promotional events. Companies can hand out samples of their products, pamphlets and brochures to the audience before the movie starts. There are various ways to ace this advertising segment.
Do the audience actually watch cinema advertisements?
Hall & Partners conducted a survey which found out that cinema works in a much better way than any other media. The ads that audiences watch in the theatres are processed by the brain more consciously, which creates a more emotional and powerful engagement with the brands.
Cinema advertising is said to be 8 times more effective than television, as it makes your brand stand out. Cinemagoers tend to identify and recall a brand three times more than TV viewers. Cinema audiences are also more likely to get emotionally attached to the ads than TV audiences. The experience factor that audiences get in the theatres is phenomenal and the impact of the big screen is such that consumers are twice as likely to retain the brand ads.
Is cinema advertising still effective?
In-cinema advertising is ideal for businesses who want to target a particular demographic region. Movie theatres have a hyperlocal reach and cater to audiences who are at a certain distance (for example, 10-mile radius) from the theatre.
This also works brilliantly for the shops that are present inside the mall. Raymond, Lifestyle Business, Syska and Manyavar have heavily invested in cinema advertising to build the brands.
Many advertisers may think that the impact of movie theatres may have decreased due to the increase in consumption of OTT content. However, there has been no negative effect of the rising OTT platforms on cinema. In fact, the number of movies being released every month has increased, and the number of cinema screens in India is also steadily increasing.
In terms of OTT penetration, developed nations have a better and larger presence, but even there, the cinema market has not been negatively affected. According to some surveys, people who are the regular consumers of digital content are the ones who often visit theatres.
There has been an advent of OTT platforms in the last few years, however the cinema industry as well as in-cinema advertising has only grown that too at a phenomenal rate.
What are the most effective forms of cinema advertising?
- Leaflet/voucher Distribution
- Ticket Counter Area
- Ticket Jacket
- Food Court/Waiting Area
On Screen Ads
- Slide Ads
- Video Ads
Target audience for cinema ads
As per the data from Kenter, 80% of the prime audience belongs to the higher socio-economic class.
Prime (Multiplex and Hollywood release screens)
|SEC Group A||65.5%|
|SEC Group B||17.5%|
|SEC Group C, D and E||17%|
Popular (Single and without advanced technology screens)
|SEC Group A||43%|
|SEC Group B||23%|
|SEC Group C, D and E||30%|
Effective ways to advertise in cinemas during festive season
The pandemic had an adverse effect on the cinema industry, however the year 2020 and 2021 has been a game changer. The movie theatres saw a massive decrease in footfall due to COVID, but as theatres are reopening in most of the cities and with festive releases, audiences are actively visiting theatres.
The most effective way to advertise in movie theatres is on the basis of the genre and the movie released. It is always a good option to advertise your brand in a big budget or all star cast movie which is likely to drive in more audience. The festive season is generally the time for new releases and big budget movies, so it’s the best time to give your brand a boost.
Here’s a list of film genres that are most preferred by Indians;
Though the festive season is here and several all star-cast movies are getting released, audiences are still a bit reluctant to visit the theatres due to the pandemic. Hence, advertisers must take a few things into consideration while choosing the theatre for advertising. There are a few factors that are impacting the audiences’ decision to visit any theatre, advertisers must be aware of these factors too. This is because there is no point in advertising in a cinema theatre which won’t have enough audience.
This graph represents the factors that determines the decision to visit theatres;
Super Hit Movies For Advertising
83 (Release date: 24 December, 2021)
Spiderman: No Way Home (Release date: 17 December, 2021)
Bunty Aur Babli 2 (Release date: 19 November, 2021)
Satyamev Jayate 2 (Release date: 25 November, 2021)
Antim (Release date: 26 November, 2021)
Check out this space for more information on cinema advertising. In case you have a query regarding cinema advertising, let us know in the comment section or send us a mail at Help@TheMediaAnt.com.