In-cinema ads grew at 25% in 2016, 20% average growth rate over 3 yrs: Report

With numbers showing a phenomenal growth rate for in-cinema advertising in the last few years, we at Spotlight explore the factors that make this growth rate smooth and steady

e4m by Naziya Alvi Rahman
Published: Jun 19, 2017 7:35 AM  | 4 min read

You may have to think twice to recall the first movie you saw in a cinema hall, but the Vicco Turmeric ad that played out during every movie remains fresh in the memory. Such is the power of in-cinema advertising, a sector that saw a phenomenal growth of 25 per cent in 2016 alone.

From coffee, chocolate, instant noodles to health drinks, in-cinema advertising is the perfect place for brands to create visibility for themselves, claims a 58-page elaborate report compiled by GroupM owned Interactive TV, the largest player in theatre advertising of cinemas in the country. The propensity to purchase is higher in theatres, claims the report titled, At a Theatre Near You.

The report cites industry sources and claims that with a growth rate of 25 per cent in 2016, the sector has made it imperative to have a monitoring tool like CAM to strategically assist the advertisers. The report cites another GroupM report – This Year, Next Year – which found that in-cinema advertising has been growing year on year by 20 per cent over the last three years.

Experts believe that this steady growth rate has made in-cinema advertising a big talking point amongst the media agencies which are now betting high on the sector.

Here is a table where the report elaborates 32 advertising touchpoints in a cinema hall.

Factors leading to the boom

Experts believe there are many factors leading the boom, but primarily it is the increase in the number of multiplex screens. Also, there has been an awakening in the advertising and media buying community that in-theatre advertising offers a proper target audience which is captive during the time ads play out.

“This means that cinema advertising has a good chance of creating recall value in the minds of potential consumers. As the multiplex segment offers different pricing to attract different segments, ads can also be diversified to reach different segments cleverly. The relatively lower costing of theatre advertising as opposed to other media is also something that adds to its effectiveness at the moment,” says Rahul Puri, Managing Director of Mukta Arts for Mukta A2 Cinema.

Top five categories that spend most on in-cinema advertising

  • Food and Beverage

  • Banking and Finance

  • Beauty and Personal Care Products

  • Apparel

  • Telecom and ISP


Source: Interactive TV report, June 2017

Prashant Verma, Director Marketing, Grofers, agrees that cinema allows a certain geo-targeting that TV cannot replicate and even generates impact that digital videos cannot create. “The key is not to evaluate absolute CPV of cinema ads, but effective CPV over a period of time. Being an enclosed captive medium, cinema also leads to higher recall of brands and provides incremental reach effectively,” says Verma.

Improved infrastructure and growing footfall is another key reason, claims Sanjiv Pandey, Marketing Manager, Subway South Asia. “Massive private investment in infrastructure has also transformed the cinema-goers’ experience. Given the ever increasing footfall of prime audience and reach, cinemas are emerging as a highly potential advertising medium. Production houses are investing in innovative marketing and promotion activities prior to any release, thus creating pre hype and anticipation,” says Pandey.

Grofers, an online grocery portal, claims that in-cinema advertising helped the business metrics grow by 30 per cent in the key markets where they used it. Moreover, the brand scores improved in the direction that they wanted and cinema provided for an incremental reach over TV.

More from the report ‘At a Theatre Near You’

The report that goes deep into the minds of the audiences claims that brands placed during intervals have a higher recall value compared to the ads aired before the movie. Interestingly, 50-60 per cent of the respondents interviewed for the report claimed that they paid more attention to in-cinema ads and that they find them more interesting than TV ads.

Another reason that makes in-cinema advertising a hot spot is that an average consumer reaches the movie hall 15 minutes before show time, which allows enough and more branding opportunities for the advertisers to engage with consumers who are also digital savvy.

“We have tried to figure out who this audience is, why they watch movies and what are their other habits. This is arguably the first ever such study and makes for a fascinating read for anyone who is interested in the magic of the movies,” says Ajay Mehta, Managing Director, Interactive Television.

The report further claims that 71 per cent of these cinemagoers are in the 15-24 years age group. Also, 61 per cent of the total moviegoers come from the affluent class. Interestingly, it’s not the popularity of a movie or stars that attracts moviegoers to the screens anymore. Movie-going has become a habit for many families and 61 per cent people go to the screens out of habit or to spend time with their families.

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