Shah Rukh Khan once remarked, “Cinema in India is like brushing your teeth in the morning. You can’t escape it.” This sentiment extends beyond viewers; brands, too, cannot afford to ignore this powerful medium. Through in-cinema advertisements and subtle brand integrations, companies seek to harness this fandom and forge positive associations. Though the rise of OTT platforms and increased costs have affected cinemas post-COVID-19, the industry remains resilient and relevant. Despite a period of stagnation during the pandemic, 2023 emerged as a bright spot with major hits like Pathaan, Jawan, Animal, and Gadar 2. However, 2024 hasn’t been an easy year for cinemas, as few Bollywood releases have achieved substantial box office success, complicating efforts for a full recovery. In response to the content drought, cinemas have opted to re-release films with a cult following. This strategy has yielded some small victories, providing the momentum needed to reinvigorate the box office landscape.
This year, we saw movies, such as Rockstar, Gangs of Wasseypur, Jab We Met, Laila Majnu, Zindagi Na Milegi Dobara, and Tumbbad, being granted a second attempt at a big-screen redemption. Industry experts find that many of them even went on to cash-in close to INR 50 crore. It is being observed that a dearth of content is the primary reason why many of these re-releases were a success.
Gautam Dutta, CEO – Revenue & Operations, PVR INOX Limited, notes that some people’s nostalgia and younger audiences’ (GenZ and Gen Alpha) discovery mixed with cinema’s immersive experience is why many of these re-releases saw good numbers. “While all the re-releases opened very strongly and some of them even saw 100% occupancy, Tumbadd and Rockstar were the ones that stood out of the lot, grossing close to
INR 50 crores in total within a limited time span.”
Dutta further notes that regional films like Ghilli (Tamil) and Pokiri (Telugu) have been pivotal in driving this trend, achieving significant success, especially in Tier 2 and Tier 3 cities. “Ghilli, for instance, earned INR 40 crore, highlighting the strong appeal of regional cinema in these markets,” he adds.
Industry professionals note that very few fresh releases, such as Stree 2, maybe Fighter, and certain movies from the South, performed well this year. This is why many of these old movies were returned to the cinemas. They were loved, and they did fetch good results. While this year isn’t as big as last year, there is still an upward momentum, and the industry is gradually recovering from the harsh effects of the pandemic. The ad spends in the space can vouch for that.
This year, experts anticipate a growth of around 18% in cinema ad spends over the previous year. And largely the sentiments remain in favour of cinemas, as the medium possesses some really important characteristics. This makes it difficult for marketers and advertisers to look away from this avenue.
Similarly, Sunny Vohra, CEO – Madison Turnt & Anugrah Madison, reckons that in-cinema ad spends grew by 36% from INR 500 crore in 2022-23 to INR 776 crore in 2023-24, reflecting brands’ appreciation for an engaged audience. He now expects a growth of 18% over 2023-24, instead of the earlier forecast of 35%.
While the growth is less than expected, there is still an upward movement. And the medium is still capable of wonders. Talking about this constant growth and some benefits of the medium, Vohra opines, “Cinema provides a unique environment where the audience is fully captivated. Unlike TV or digital platforms where distractions are plentiful, cinema viewers are deeply engaged, making it a prime space for delivering visually compelling and emotionally resonant campaigns. Furthermore, research shows that viewers are 62% more likely to recall ads seen in cinema compared to other mediums.”
Whether it is for re-releases or fresh launches, brands continue to take their commercials to cinemas. Brands such as Greenply, Biba, B-Tex, and Mohey have continued to leverage this avenue to target cinema lovers. People find that movies are a great time to introduce audiences to ads because people are generally in a good mood when they are out to watch a movie with friends or family.
Sharing how his brand engages with this space, Yatnesh Pandey, Vice President – Marketing, Greenply Industries Ltd, puts forward, “We ensure extensive coverage, targeting at least 90% of the screens available in a target city to maximise our reach and visibility. In-cinema advertising offers us a unique opportunity to leverage this immersive, larger-than-life environment to tell our brand story in a memorable way. It allows us to not only engage audiences at an emotional level but also drive key brand KPIs such as heightened brand recall and awareness.”
There is another added benefit within cinemas that comes in the shapes of banners and posters placed in the lobbies of the theatres. These work as great agents for brand recall. And with digitisation of these cinema posters, it makes it easier for the theatres to improve the quality as well as the quantity of these banners.
Highlighting how his brand is walking on this road, Chirag Gupta, Founder and CEO, 4700BC, says, “Chains like PVR INOX attract a niche, middle-to-higher-income audience, making them ideal for brands targeting this demographic. Visibility within cinemas—whether on-screen or through banners—can be effective. While the audience’s time in the lobby is brief, the advertising costs are relatively low, making it a worthwhile option for brands with the right target audience.”
Professionals in this space are claiming that re-releases have energised this relatively silent year. However, it is quite difficult for one to discern the exact ad spends associated with the re-releases. The current system of taking ads to theatres and this phenomenon being so new makes it hard to be calculated.
Elucidating the framework, Amit Sharma, Managing Director - Entertainment, Miraj Group, remarks, “In advertising, two types of deals are common: seasonal deals, tied to specific events like festivals or movie releases, and year-round deals from brands that advertise across all films and screens. Currently, brands that advertise year-round are benefiting most from movie re-releases. However, as it’s hard to predict which re-releases will succeed, brands are hesitant to commit to specific films for advertising.”
While there have been ample discussions on how this year was relatively quiet, experts are positive about the road ahead. From PVR INOX achieving a consistent 30% growth in ad spending over the past two years to Mirage Cinemas experiencing an increase in the number of brands bringing their ads to cinemas, the environment remains largely positive.
Sharma is hopeful of the coming times. He brings to our attention that the upcoming lineup, comprising movies like Sabarmati Express, Kanguva, Pushpa, and Baby John, will fill the calendar over the next 2-3 months, coinciding with the festive season. This timing will likely lead to a significant boost in on-screen advertising revenue, especially for corporate ads, Sharma believes.
While some find OTT to be the biggest nemesis of cinemas and theatre culture in general, we are also seeing an improvement in the connection between the two mediums. The trend of movies getting released in cinemas first and then moving to OTT is already very common. Going ahead, we might see OTT re-releases being taken to the big screen. On top of that, Amazon Prime and team Citadel Hunny Bunny recently partnered with Gaiety Galaxy Cinema, Bandra, to promote their upcoming show. What is even more interesting is the fact that not only did they promote their show uniquely at a very famous location, but they also seem to be targeting a very different audience, cinema-goers.
As the cinema landscape adapts to evolving viewer habits, the resurgence of blockbuster re-releases highlights the industry’s resilience. This trend not only caters to nostalgia but also capitalises on the unique cinematic experience, attracting both loyal fans and new audiences. With significant growth in advertising spend, brands are recognising the value of engaging with cinema-goers in this immersive environment. Looking ahead, the upcoming roster of films and the synergistic relationship between OTT platforms and theatres promise to reinvigorate the box office, ensuring that cinema remains a vital part of India’s cultural fabric.
