--> Film marketing grabs spotlight, taking 30% of budgets, doubling pre-COVID levels

Film marketing grabs spotlight, taking 30% of budgets, doubling pre-COVID levels

Marketing budgets have skyrocketed, heralding a shift in the industry where producers battle for visibility in an increasingly crowded and digital-first marketplace

by Aditi Gupta
Published - April 07, 2025
6 minutes To Read
Film marketing grabs spotlight, taking 30% of budgets, doubling pre-COVID levels

Film marketing expenses in India have become an increasingly significant factor in determining the commercial success of movies. With a rapidly expanding film industry catering to a diverse audience across regional, national, and international markets, marketing strategies have become more complex and multifaceted.

The surge in marketing costs mirrors the intensifying competition within the entertainment industry. Producers are now investing heavily in digital campaigns, influencer partnerships, and high-profile advertising strategies to secure visibility for their films. The growing intricacies of promoting a film in today’s digital age have made marketing budgets skyrocket.

Rising marketing budgets: A shift in the film industry

Industry experts acknowledge the rising cost of film marketing, attributing it to the sheer volume of content being released daily. With more films competing for attention, maintaining visibility has become even more challenging.

A renowned filmmaker shared his perspective with exchange4media, emphasising the importance of storytelling in driving organic virality.

"If a film’s subject resonates with audiences, its teaser or trailer can go viral. This was less common in the past, but sharing on digital platforms has made it easier. However, to reach wider audiences, films now need to be prominently featured on these platforms, which comes at a high cost,” he noted. He also highlighted that while influencers are crucial for promotion, they can only do so much. “Even the best influencers can’t save a film if the product isn’t good,” he said.

A head of a production house echoed a similar sentiment, observing that while marketing has always been essential, the sheer volume of marketing activities today demands louder and more distinct campaigns. "You have to shout smarter and more distinctly to stand out in a crowded market," he remarked.

The head of production also pointed out how films featuring big stars like Salman Khan, such as Sikandar, have the benefit of automatic marketing due to their star power. In contrast, smaller films face stiffer competition and need to work harder to capture the audience's attention. "For these films, you're up against everything—from streaming platforms to viral content. To get people into theatres, you need to convince them to stop what they’re doing and make the effort to watch your film," he explained.

According to industry experts, marketing expenses have grown dramatically, now accounting for nearly 30% of the production cost—double the figure from the COVID-19 era. For films without a franchise or established star power, this percentage is even more crucial to ensure visibility. Franchise films have the advantage of an existing fan base that is already aware of the film’s release.

One production house head explained that, in today’s competitive environment, marketing expenses are essential to ensure a film’s presence on various digital platforms. The increased cost of featuring films on platform main pages, along with the sheer amount of content being released, has made it harder to maintain visibility for a prolonged period. “The marketing duration has also shortened—just two to three weeks is enough to capture the audience's attention,” he added.

Digital marketing has become indispensable in today’s industry, especially for films releasing on OTT platforms. Experts noted that both production houses and OTT platforms bear the financial responsibility for these digital campaigns. When releasing films independently, the production house must handle all marketing expenses, which can be a significant burden.

Marketing costs: The numbers behind the trend

The cost of marketing has become a more substantial part of the film production budget, with some estimates indicating that marketing now consumes up to 30% of a film’s production cost. This share has significantly increased over the past few years, reflecting the greater need for visibility and audience engagement in a hypercompetitive market.

According to the FICCI-EY M&E Report 2025, the media and entertainment sector in India has grown 16 times over the last 25 years, with a compound annual growth rate (CAGR) of 12%. However, the revenue from filmed entertainment saw a dip, dropping by 5% from Rs 197 billion in 2023 to Rs 187 billion in 2024. Despite this, the revenue was higher than the Rs 172 billion recorded in 2022.

This decline in revenue came at a time when several top Bollywood stars had no film releases, and those who did, including Akshay Kumar, Ajay Devgn, and Hrithik Roshan, experienced limited success at the box office. This trend highlights the growing uncertainty in the film industry: films either perform exceedingly well or fall flat Experts suggest that over 70% of total box office earnings are generated by the top 10 films, with the rest of the films struggling to perform at the same level.

This polarized trend is also evident in the variety of films being released. In 1999, India saw 800 films released across 12,900 cinemas. By 2024, the number of films released had surged to 1,823, including 204 dubbed versions, although the total number of films released in South Indian languages declined slightly by 3%. In contrast, releases in other languages increased by 11%, said the FICCI-EY report.

The challenge of competing for attention

The industry’s growing reliance on digital platforms has intensified the battle for attention. There is a constant need to be omnipresent across social media, streaming services, and digital advertising channels. As more films flood the market, the challenge is to stand out, with each production vying for limited space on major platforms.

Moreover, the emergence of platforms like Netflix, Amazon Prime, and regional OTT services has only added to the competition, as these platforms themselves now contribute to the marketing efforts of films that release directly on their platforms. For smaller films, this requires additional expenditure to secure a competitive edge, while large-scale releases from top stars enjoy a natural, built-in audience.

Experts also pointed out that while the marketing budget is crucial for visibility, the duration of the marketing campaign has become increasingly condensed. Films now typically get only two to three weeks to capture the audience's attention before being overshadowed by the next big release. In this ever-evolving landscape, film marketing has had to adapt quickly, creating strategies that make an immediate impact, leveraging everything from teaser trailers and influencer partnerships to targeted social media campaigns.

The industry raises a crucial question - How sustainable is the current model, and will it eventually lead to a market saturated with marketing noise, leaving smaller films struggling for their place?

The challenge for filmmakers and production houses in the years to come will be to balance high marketing costs with the need to create a film that resonates with audiences. With competition growing not just from other films but also from digital content, the strategy of “shouting louder and smarter” may well be the key to survival in an increasingly crowded marketplace.

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