It’s no secret that the film industry was one of the worst-hit last year, but with the world opening up again, what is the future of cinema advertising? We intend to find out. So grab some popcorn, and let’s discuss why cinema advertising is still important for advertisers to consider.

What is cinema advertising?

While there are many different kinds of ads that appear in cinemas, for this article we’re focusing on video ads that appear to viewers before their film starts. Specially selected for each film, ads can be targeted based on the genre of the film being shown and the age of viewers to attract a specific demographic.

Video ads in cinemas offer advertisers a unique opportunity to reach specific groups of people at an optimum time - when they are engaged. 

 Why is cinema advertising unique?

Unique to the cinema is that ads are considered a part of the viewing experience. While some studies suggest that consumers are beginning to ignore ads on social media (putting pressure on advertisers to maximise ROAS further), and TV ads are in the background as viewers rush to put the kettle on, a key part of the cinematic experience is watching the ads that come before the movie.

(Actually - the ads that come before the trailers, which come before the movie.)

Ads are so integral to the cinematic experience that the “showing times” actually dictate when the ads start playing, not when the film starts. Viewers arrive at the cinema on time for their showing, grab some popcorn and drinks, and enter their screen to watch ads. This makes cinema advertising a gold mine for advertisers. But for cinema video ads to work, there need to be viewers buying tickets.

According to the World Advertising Research Centre (WARC) in a report carried out before the pandemic, revenues from the Chinese box office alone will hit $15.5billion by 2023, rivalling the US’ projected $12.5billion by the same year. But with the emergence of COVID came a huge blow to the industry, with most cinemas being closed for most of the pandemic. Despite this, viewers are eager to return to the silver screen. One survey found that over 59% of the UK cited cinema as the out-of-home activity they missed the most during quarantine. 

And that’s not all. 

Black Widow, one of the first films released as cinemas reopen, grossed over $200million worldwide in cinemas and wasn’t the only high budget movie released within this period to great success. Viewers often associate the cinema with happy memories, meaning that when they watch the ads before their film starts they are usually in a positive, attentive mood, and much more likely to be impacted by the ads that they watch. What’s more - advertisers can easily tell how well their ads perform due to how many seats are filled. 

1 seat filled = (roughly) 1 impression. 

So, does the future look equally positive for advertisers looking to use cinema ads? A survey carried out by Metrixlab for the Film Distributors’ Association found that while 40% of audiences are planning to return to cinemas within the first few weeks of their reopening, a further 36% plan to return after a couple of months. 

Cinema ads are back, and if these trends continue, they’re set to rise to even greater heights.

Looking for cinema advertising? Get in touch with One Day Integrated Agency today.

To learn more about the Power of Cinema Advertising, get in contact today.