Good films and re-releases scripting blockbuster ad revenue story for South theatres?

Blockbusters from South India are accelerating the region's commercial value of in-theatre advertising.

With over 50% of the in-theatre ad inventory of Pushpa 2: The Rule booked 3 weeks before the release, the medium is attracting adspends like never before. 

“Looking ahead to 2025, the region is poised to continue its growth trajectory, with a projected annual increase in revenues ranging from 12-25%,” said Gautam Dutta, CEO – Revenue & Operations, PVR INOX Limited. He listed ongoing demand for regional cinema and evolving advertising strategies as the key factors driving the demand for in-theatre advertising.

In-theatre advertising in South India is witnessing a shift towards a holistic 360-degree consumer engagement strategy. “While traditional on-screen advertising remains important, brands are increasingly leveraging non-traditional formats such as experiential campaigns within cinema lobbies, entrance building, concession stand activations, restroom branding and ticket-based promotions to maximize reach and resonance,” Dutta explained.

“Brands have been leveraging selfie booths and product placements to create experiences,” said Mukesh Agrawal, Co-founder, The Media Ant. However, he added that the experimentation is yet to reach its full potential as the logistics cost is a bottleneck for most brands.

Jewellery, apparel and saree brands are the biggest advertisers for in-theatre advertising in South India. Delving into city-specific trends, Agrawal said, “In Chennai, much more demand is seen from fashion brands than Bangalore. Interest from jewellery brands is pretty much the same across markets. Hyderabad is a bit heavy on real estate. Kochi also sees a lot of interest from fashion and jewellery brands.”

To further increase brand interest, the theatre ecosystem is trying to increase footfall with good content and re-releases of popular movies but consistency remains a hurdle. Agrawal explained, “If there is a constant supply of good content, then brands will make in-cinema advertising a key part of their overall strategy.” Currently, barring a few categories and brands, most advertisers are not considering in-theatre advertising as a year-long activity.

The success of Pushpa 2 in attracting brands is a testament to the power of content over marketing, big budgets and popular names. “Content has become the deciding factor. There are very few movies that are really doing good. In-cinema advertising spikes when there is a popular movie and then it goes down. You don’t have a movie that’s becoming a blockbuster every month,” explained Agrawal.

As in-theatre advertising continues to gain traction in South India, its growth hinges on the unpredictability of blockbuster content. It will take considerable time and collaborative effort to build the much-needed pipeline of good content to keep up this momentum.