Cinema advertising in India to grow at 9% in 2025: PMAR

The Indian cinema advertising industry witnessed a modest 10% growth in 2024, reaching Rs 851 crore, according to Pitch-Madison Advertising Report 2025. While this marks a recovery from the pandemic induced low of Rs136 crore in 2021, it still lags nearly 20% behind the pre-COVID peak of Rs 1,050 crore in 2019. The slow pace of growth, compared to 36% in 2023, highlights the industry’s struggle to regain momentum.

One of the few bright spots in 2024 was Pushpa 2: The Rule, which alone contributed around Rs100 crore to cinema advertising. The film’s massive success underscored the growing dominance of South Indian cinema, which continues to drive advertising revenues.

In contrast, Bollywood has struggled to produce consistent blockbusters. The industry, once the backbone of Indian cinema, has failed to attract audiences back to theaters, leading to weaker advertising spends. The reliance on big-ticket releases to sustain cinema advertising means that when Bollywood underperforms, the entire sector feels the impact.

Cinema AdEx Still Below 1% of the Total Advertising Market

Despite its gradual recovery, cinema advertising remains a small player in India’s overall advertising expenditure (AdEx). Historically, it has held a share of less than 1% of total AdEx, and that trend has continued in 2024. Unlike digital and television advertising, which have rebounded strongly post-pandemic, cinema advertising emains dependent on the box office performance of films.

2025 Forecast: Slower Growth and Continued Challenges

Industry projections suggest that cinema advertising will grow at an even slower rate of 9% in 2025, reaching approximately Rs 950 crore. This means that even by the end of 2025, the industry will still be short of pre-pandemic levels. Several factors contribute to this sluggish recovery:
OTT Platforms’ Rise: Streaming services continue to pull audiences away from theaters, reducing cinema footfall and, in turn, advertising demand.
Lack of Consistent Blockbusters: While South Indian films are driving revenues, Bollywood’s inconsistency is limiting overall growth.
Ad Budget Diversification: Brands are allocating more of their advertising budgets to digital platforms, which offer better audience targeting and engagement. "In 2025, the total Cinema Adex is projected to reach approximately Rs. 950 crore, still falling short of the pre-COVID revenue mark of Rs. 1,050 crore. This indicates a continued challenge in recovering fully from the impact of the pandemic and the path to pre-COVID numbers is likely to take longer than anticipated. The rise of Over-the-Top (OTT) platforms has significantly impacted cinema advertising. With more viewers shifting to digital platforms for their entertainment, the footfall in cinemas has decreased", the report stated.

South Indian Cinema Leads the Way

While Bollywood struggles, South Indian cinema is thriving. Over the past few years, Tamil, Telugu, Kannada, and Malayalam films have consistently delivered high-grossing movies that attract advertisers. This trend is expected to continue in 2025, with brands preferring to invest in films that guarantee large audience engagement.

Can Bollywood Reinvent Itself?

For cinema advertising to reach its pre-pandemic peak, Bollywood will need to reinvent itself. Filmmakers must focus on creating content that resonates with audiences and drives them back to theaters. Without a strong lineup of successful releases, cinema advertising risks stagnation.

As the industry moves forward, the question remains: will Bollywood reclaim its dominance, or will South Indian cinema continue to be the driving force behind cinema advertising in India?

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