The global cinema advertising market is forecast to be worth US$4.6 billion in 2019, according to Warc. This represents a 6.8% increase over 2018, while the overall ad market is predicted to rise by 4.6% to $624.9 billion.
China is the world's largest cinema ad market, with RMB11.9 billion ($1.67 billion) expected to be spent this year, equal to a 47.3% share of global cinema adspend when measured in purchasing power parity terms. China's cinema ad market brought in RMB10.3 billion ($1.44 billion) in 2018, up 19.7% over the previous year and equal to a 44.1% share of the global market 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. Data from PwC suggests China will become the largest cinema market in 2020 in terms of box office receipts, while IHS suggests 9,303 cinema screens were added in China in 2018 alone.
Warc expects the Asia Pacific cinema ad market to be worth $2.5 billion this year, up 12.8% from 2018 levels. It has grown every year since 2014, quicker than all other traditional media as well. Cinema will account for 1.3% of all APAC adspend this year, up from 1.2% in 2018 and a 0.1% share in 2000.
In the US, the world’s second-largest cinema market, with a projected value of $735 million this year, the medium draws just 0.4% of media budgets on average.
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."