Cinema predicted to outpace global ad market

Cinema: China is top growth market
Cinema: China is top growth market

Spending on silver screen by advertisers to rise 6.8% from 2018.

Warc has predicted that cinema and the internet will be the only media not to lose share in the global advertising market this year.

The global cinema advertising market is forecast to be worth $4.6bn in 2019, representing a 6.8% increase on 2018. The overall ad market is predicted to rise by 4.6% to $624.9bn.

China is the largest cinema ad market globally, with CNY11.9bn ($1.8bn) expected to be spent this year, equal to a 47.3% share of global cinema adspend when measured in purchasing power parity terms.

The country has on average accounted for three-quarters (74.9%) of global growth in cinema adspend since 2015 and is expected to contribute 87.4% towards global cinema growth this year.

In the US, the world’s second-largest cinema market with a projected value of $735m this year, the medium draws just 0.4% of media budgets on average.

Data from the Motion Picture Association of America show that the amount consumers spend on digital home entertainment, including on online subscriptions such as Netflix, surpassed the amount spent at the cinema globally for the first time last year ($42.6bn versus $41.1bn).

Over the course of an average year, a Netflix subscription will cost a consumer $113.16. This compares with the $45.55 a North American will spend at the cinema each year, with the equivalent figures for the UK and the European Union at $25.13 and $11.04 respectively.

James McDonald, managing editor at Warc Data, and author of the research, said: "The experiential nature of cinema places it in a different bracket to SVOD services, which instead occupy a similar space to traditional TV. This, coupled with the exclusivity of box-office hits – particularly franchises – should ensure any downward pressure from SVOD services is minimal in the short term.

"Cinema offers advertisers access to younger, more affluent audiences who have an affinity with the medium. This enables ads to be screened in a brand-safe environment where they will be noticed, often in a location that is close to a retail outlet and, by extension, a point of purchase."

Internet is expected to grow 13.2% this year to $298.1bn, down slightly from 17.7% growth in 2018.

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