In 2023, the Indian entertainment industry saw blockbuster hits, putting an end to the string of disappointments and restoring faith in the business of movie-making. Reports indicate that the industry generated an all-time high revenue of nearly Rs 12,000 crore, a growth of 15% compared to 2022.

Correspondingly, cinema chains also witnessed a surge in advertisements, taking advantage of the skip-free environment. For major hits like "Animal" or "Pathaan", the ad schedule was extended from 10-15 minutes to 20 minutes, e4m learnt from experts. There were also several instances of brand integrations in movies.

According to Gautam Dutta, Co-CEO of PVR INOX, "As we reflect on the journey of PVR INOX throughout 2023, the resounding success of blockbuster movies has been the driving force for the advertising business. The stellar performance in H1 FY24, was underlined by a commendable 17% increase in advertising revenue on a year-to-year basis. We are nearly at par with pre-pandemic levels.”

As for Rahul Puri, MD at Mukta A2 Cinemas, the cinema industry has recovered from the OTT boom. “In 2023, cinema players experienced a notable surge, overcoming challenges posed by the OTT sector. Ad rates have seen a positive shift compared to the previous year, aligning with the success of back-to-back hits. The increased admits and footfalls have enhanced the value proposition for advertisers.”

Veena Sequeira, Vice President of Miraj Entertainment Ltd, echoed similar sentiments, "2023 marked a comeback year for the entertainment industry.Shah Rukh Khan's return, numerous movies entering the Rs 100-crore club, and even smaller films performing well at thebox officecontributed to this success. Notably, there's been an 18-20% surge in the marketing budget allocated to cinema advertising. 2024 holds promise for this advertising platform."

As newer brands join the ranks of advertisers and extend their reach to tier 2 and 3 cities, cinema advertising has emerged as a gateway of opportunities. Beyond the conventional sectors like jewellery, banking, or technology, brands from diverse categories are now showing a keen interest in this medium.

Datta said, “The extensive support from diverseadvertisingcategories such as FMCG, telecom, e-commerce, ed-tech, BFSI, consumer durables, automobiles, apparel, accessories, jewellery, media entertainment, real estate, and more has been instrumental. We are privileged to partner with renowned brands like Apple, Oppo, Cred, OnePlus, Facebook, WhatsApp, PepsiCo, Coke, Dyson, Manyavar, Kotak, Pepsi, Tata CliQ, Dettol, HDFC, Nippon, WOW, and others.”

Sharing a different perspective, Sequeira said even though brands understand the importance of the medium, they are still cautious with the investment. “Until 2019, brands used to make yearly deals, now they only invest in major hits or large-scale movies. As experiential marketing gains prominence in 2024, brands are actively engaging in strategies to connect with their audience and become a part of their social media narratives. Recognizing this trend, cinema theatres are evolving into venues for brands to host activities and initiatives, ensuring a memorable presence in the audience's experiences.”

Datta told e4m that they were going into the heartland of the country expanding their footprint in the interiors thereby giving brands a chance to touch those audiences.

Meanwhile, Puri said, “To entice advertisers, we are introducing innovative approaches in theatre ads. This includes interactive and engaging formats, leveraging technology for a more immersive experience. These initiatives aim to captivate audiences and provide advertisers with novel ways to connect with their target market.”