Cinema AdEx set to touch Rs 950 crore this festive season

New Delhi: The 2025 festive season is projected to push cinema AdEx to Rs 950 crore, up 9–18% year-on-year, fuelled by surging footfalls and a packed line-up of tentpole releases.

Vaishal Dalal, Co-founder and Director, Excellent Publicity, explained, “Festive 2025 cinema AdEx is projected to grow 9% to about Rs 950 crore, slightly slower than 2024’s 8–10% rise to Rs 851 crore, and still below the Rs 1,050 crore pre-pandemic peak.”

With Diwali falling earlier in October, timelines are compressed, prompting advertisers to close deals months in advance around big titles such as Jolly LLB 3, Kantara Chapter 1, Avatar 3 and Tamil–Telugu blockbusters.

From an exhibitor’s standpoint, the momentum is clear. Gautam Dutta, CEO (Revenue & Operations), PVR INOX, observed, “The festive season of 2025 is shaping up to be extraordinary for cinema advertising, with PVR INOX seeing healthy double-digit growth over last year. Audiences are coming back to theatres in record numbers. The festive quarter is set to create unmatched moments on the big screen.”

Other players also see growth being driven by content and advertiser sentiment. Miraj Entertainment’s Vice-President, Sales and Marketing Head, Veena Sequeira, estimated, “We expect festive cinema advertising in 2025 to grow by nearly 15–18% over last year. A strong film slate combined with advertisers’ renewed appetite for large-format impact is driving this growth.”

Cinema as part of integrated storytelling

Executives stressed that cinema is no longer treated as a standalone medium but is increasingly tied into broader campaigns. Dutta pointed out, “Advertisers are combining on-screen presence with digital, social and influencer extensions to build continuity before and after screenings.”

Sequeira agreed, noting that cinema is now the first burst of brand storytelling during the festive season. “On-screen ads are increasingly the opening chapter of festive campaigns, which then continue through digital and influencer-led platforms. Brands now view cinema as the launchpad for narratives that seamlessly travel into consumers’ digital lives.”

Dalal added that brands are using cinema tactically within 360-degree plans. “On-screen spots trigger QR scans and retargeting on social and OTT; lobby screens drive hashtag activity; influencer premieres extend the story online. These tie-ins are expected to contribute meaningfully to cinema ad revenue by 2025.”

Regional storytelling adds heft

Festivals in India are both national and hyper-local, and advertisers are leaning into regional blockbusters to reflect that. Sequeira explained, “Advertisers increasingly recognise that festive releases across states are not just national moments but deeply regional ones. Vernacular narratives are helping brands strike a more authentic connection with audiences.”

Dalal pointed to case studies, saying, “South Indian tentpoles like Pushpa 2 proved the payoff. Diwali 2025’s slate is dominated by Tamil and Telugu biggies, prompting multi-language cuts, local celebrity cameos and Bharat-market focus as multiplex penetration rises in Tier 2 and 3 towns. For example, Manyavar’s multilingual cinema burst lifted awareness by 30% among youth.”

Competition for premium slots

The festive quarter has also intensified the battle for prime on-screen inventory. Sequeira listed the main categories, saying, “E-commerce, auto, smartphones, premium FMCG and consumer durables are driving the fiercest competition for prime show slots. These categories align with festive buying behaviour and are investing heavily in premium multiplex placements.”

Dalal added that competition is pushing rates higher. “E-commerce, FMCG, consumer electronics, smartphones and auto are the most aggressive bidders for opening and closing pods. Fintech, banks, real estate and travel are also stepping up. Rates for blockbuster shows are 30–50% higher than off-season, with some chains even auctioning prime inventory.”

Greater focus on measurability

One of the criticisms of cinema advertising has been limited measurability compared to digital. Executives said this gap is narrowing. Sequeira explained, “Brands are experimenting with QR activations, geo-fenced retargeting and POS-linked attribution. This is giving marketers greater confidence in linking cinema spends directly to consumer action.”

Dalal added that new measurement tools are becoming standard. “Engagement via QR codes, mobile location matchbacks, brand-lift studies, footfall uplifts and app downloads are now common. Programmatic tools are using occupancy and loyalty-app data to deliver impression-led reporting at a rigour closer to digital.”

Blockbuster line-up drives demand

The film slate itself is acting as a magnet for advertisers. Sequeira highlighted, “Tentpoles like Jolly LLB 3, Kantara Chapter 1, Thama and Baahubali: The Epic are already driving strong demand. Advertisers are booking well in advance to secure premium multiplex slots.”

Dalal expanded the list. “South Indian titles like Sardar 2, Karuppu, K-Ramp and Dude are pegged as the hottest tickets, while Avatar 3 in December is expected to drive urban-skew demand. Brands in electronics, OTT, auto and e-commerce have already locked prime slots months ahead.”

Cinema regains its place

From being written off during the pandemic to now approaching Rs 950 crore in festive AdEx, cinema has re-established itself as the most immersive and aspirational medium on the festive calendar.

Dutta of PVR INOX summed it up: “Cinema’s cultural role goes beyond entertainment; it is where brands, stories and audiences converge. With 2025’s line-up promising unmatched spectacle, cinema advertising is not just back; it is entering its most defining chapter yet.”