Cinema AdEx rose 8% in 2024, falls short of predictions

Cinema advertising is slowly catching up to pre-pandemic levels even as the journey seems long and challenging. There were several ups in 2024 with box office collections crossing Rs 10,000 crore, according to Ormax Media estimates. Pushpa 2: The Rule reportedly raked in a blockbuster Rs 100 crore for in-theatre advertising. However, despite the progress, in-cinema advertising is still far from reaching its full potential, say industry players.

According to Pitch Madison Report 2024, cinema advertising grew from Rs 568 crore in 2022 to Rs 776 crore in 2023, with an optimistic projection of Rs 1,047 crore for 2024. However, industry observers estimate that cinema AdEx achieved a modest growth of 7-8% in 2024, falling significantly short of expectations.

The 36% growth in 2023 was impressive, especially considering the slow post-pandemic recovery. However, it was still short of the 75% growth predicted the previous year. “This figure is still short of the pre-Covid level by almost Rs 300 crore. Cinema advertising continues to contribute less than 1% of the total Indian Adex,” noted the Pitch Madison Report while analysing the 2023 performance.

“While the first half of 2024 didn’t have any major releases because of general elections, the second half saw big releases like ‘Kalki 2898 AD’, ‘Stree 2’, ‘GOAT’ and ‘Devara’. The festive releases around Diwali with ‘Singham Again’, ‘Bhool Bhulaiyaa 3’ and ‘Amaran’ also saw a good amount of advertising with clients riding on festive campaigns and increased footfalls at the theatres. The same was punctuated with the blockbuster performance of ‘Pushpa 2: The Rule’, which had the advertisers really kicked and excited,” explained Yogesh Kapil, National Sales Head, Qube Cinema Network.

Sharing insights into Qube’s performance for 2024, Yogesh Kapil shared that it was a year of stellar growth. “We managed to grow our ad revenue by 18% over last year. This has been fuelled by an increase in long-term business with over 40% of business happening through annual deals and a big push coming through growth in retail business, especially in southern markets,” he shared, listing categories like FMCG, Lifestyle, Industrial Goods, Organised Retail and Consumer Durables as top spenders of 2024.

The highs and lows of in-cinema advertising are the same in every country where the medium generates significant revenue. 2025 is expected to fast-track recovery.

GroupM’s TYNY 2024 Global End-of-Year Forecast states that cinema advertising will grow by 5.9% in 2025, though the $2.3 billion total will fall short of 2019’s $3.0 billion global figure. “Some markets will have surpassed 2019 levels by 2025, but of the world’s five largest cinema ad markets, namely the U.S., Brazil, the U.K., India, and South Korea, only Brazil will have completed its recovery by 2025,” the report stated.

Industry experts believe advertisers are holding back due to inconsistency in big releases. While there have been some major films this year, they’ve been spread out, with no steady stream of big releases that bring in footfall each month.

The industry leaned on nostalgia-led re-releases to boost footfalls in 2024, but the strategy hasn’t yet provided the stability needed for sustained growth.

Simply put, content drives consumer interest, and advertisers need stability. Experts say that if there were more consistency in releases, it could make a big difference, attracting more investment into in-cinema advertising.

That said, Pushpa 2: The Rule turned out to be a real game-changer for in-cinema advertising in 2024. The film saw in-film integrations by 25 brands, most of which released exclusive campaigns to highlight the association and leverage the pop-culture wave. These included Thums Up, Beardo, Greenply Plywood, Mangaldeep Agarbatti, Goldmedal Electricals, Beyond Snack, Sunfeast Dark Fantasy, Itel, Free Fire MAX, JK Tyres and Kalyan Jewellers. 50% of Pushpa 2’s in-cinema advertising inventory was booked 3 weeks before the release, with the movie ultimately cashing in Rs 100 Crore from advertisers.

Now all eyes are on 2025 — and its big releases.

“The first half of 2025 shows a lot of promise with big movies like Game Changer, Sky Force, Captain America: Brave New World, Deva, Raid 2, Sikandar, Hari Hara Veera Mallu and VD12 slated for release in the first quarter,” concluded Kapil.