How cinema advertising is reclaiming its place as a strategic channel for premium brands

As superheroes and dinosaurs pull audiences into theatres, advertisers are weighing cinema’s rare ability to command full attention against the lure of faster, cheaper clicks.

Warner Bros reserved a $225 million production budget for Superman this season
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We’re in the thick of summer blockbuster season, with Superman back in cinemas alongside some menacing Tyrannosaurus rexes from Jurassic World: Rebirth. While these films are drawing crowds, the question remains: are they also pulling in advertisers? Is cinema still a marginal channel left over from the pandemic years, or are advertisers giving it a fresh look in this post-Barbenheimer era?
 
“In a post-Barbenheimer world, cinema has seen a real resurgence,” says Ashleigh McQueen, senior planning director at UM Australia. “Films aren’t only being judged on their quality but also their talkability, and clients are excited to align themselves with content that really cements itself in culture.”
 
Despite this evolving role and greater appreciation for cinema, spend levels remain mostly modest.
 
“This is driven by ever-challenging budget constraints and clashing priorities,” McQueen adds. “Clients often prioritise channels where they see tangible short-term gains in volume or ROI. Even though they understand the need for a longer-term view, the pressure to deliver immediate results can work against choosing cinema.”
 
Over the past decade, cinema advertising spend has steadily declined, largely due to the rapid growth of digital advertising. Global cinema ad revenues are projected to hover around US$2.5 billion in 2025, still below the $3 billion peak reached in 2019, reflecting both pandemic disruptions and a fundamental shift in media buying towards digital channels.
 
Yet, Eileen Ooi, CEO of PHD APAC, has noticed that cinema spend has stabilised in recent years across APAC markets, hinting at a consistent group of advertisers who still value cinema as part of their marketing mix.
 
“Cinema still plays a meaningful role, especially in markets where its unique ability to engage highly attentive audiences in an immersive environment can be strategically leveraged,” she says. “For the right message and moment, it remains a powerful platform.”
 
Premiumisation
 
Indeed, cinema is no longer just a minor “nice-to-have” medium but a strategic differentiator. Movies are now assessed not just for their audience size but for their immersive, high-end atmosphere, something hard to replicate elsewhere. Categories like auto, luxury, and lifestyle have rekindled their interest in cinema due to its ability to captivate with scale and soul.
 
Beyond content, infrastructure plays a key part. Cinema chains like PVR in India have elevated the experience with luxury formats such as Insignia, featuring plush seating, curated menus, and a five-star ambience.
 
“This creates a perfect backdrop for premium brands to engage more intimately with affluent audiences who have high intent and disposable incomes,” says Krishna Iyer, director of marketing at MullenLowe Lintas Group. “With regional targeting, improved booking data, and the rise of 'event films,' cinema offers both reach and resonance. It has become a smart, premium placement for brands.”
 
Luxury seating at PVR cinemas in India.
 
Despite digital’s dominance, a 2022 Nielsen study found that 59% of moviegoers recall specific pre-show ads compared to just 22% for digital ads, highlighting cinema’s superior ad recall.
 
“While cinema may not show ads as frequently as digital, it delivers far greater impact, emotion, and attention,” says Aparna Tandon, SVP for rural, retail & experiential at Posterscope. “You’re engaging an audience that’s emotionally prepared, distraction-free, and device-free. Combined with clever geo-targeting and ‘always-on’ tactics, cinema now offers surprisingly large scale even for hyper-local brands. The engagement is deep, and the recall is high. It’s the closest a brand can come to ‘owning’ a premium moment.”
 
Cinema ad spend is showing healthy signs globally, projected to reach approximately $3.83 billion in 2025 with growth forecast at about 6.18% annually. Allocation, however, varies across key Asian markets like India, Southeast Asia, and East Asia. Markets with robust local film industries often have more evolved partnerships beyond traditional spot ads, including movie tie-ins and branded integrations.
 
Scale and sophistication
 
India remains a powerhouse for cinema, where movies are more than entertainment, they are a cultural phenomenon.
 
“We are the only market where a big weekend can simultaneously reach tens of millions across tier 1 to tier 4 towns,” says Tandon. “With such ingrained film culture, big screens hold an unrivalled emotional connection, making them highly appealing—particularly for tech, beauty, BFSI, and automotive sectors.”
 
Bollywood legend Shahrukh Khan once famously said, “In India, cinema isn’t just an art form; it’s a religion.” For brands, showing up where the faithful gather is not just smart, it’s essential.
 
“Regional icons like Pawan Kalyan, Mohanlal, and SRK are more than actors; they are cultural phenomena. Brands often reshape media plans around major releases to capture this frenzy,” Iyer explains. “Maruti Suzuki launched its Brezza SUV with a 270° immersive cinema ad, wrapping the screen for a larger-than-life effect, while Manyavar regularly leverages Bollywood blockbusters during the wedding season to stay top of mind.”
 
 
Digital innovation is also sparking fresh interest in cinema advertising. Audio-visual is no longer the only option. Technologies like scent dispensers, 4DX, smart lighting, sound syncing, gamification, and even voice-activated scenes are turning cinema ads into immersive brand experiences akin to activations rather than traditional commercials.
 
“Marvel films have integrated haptic seat motions and scent triggers in 4DX halls, while others experiment with AR and VR interactions,” says Iyer. “Cinema has transformed into a space where storytelling becomes a multi-sensory event at a time when viewers are relaxed and receptive.”
 
McQueen notes that clients are increasingly exploring how to lean into such digital innovations within cinema.
 
“Campaigns like JD Sports’ Wicked collaboration in the UK have sparked talks with retail clients about replicating a through-the-line experience that reaches audiences across multiple channels and not just moviegoers,” says McQueen. “We’ve also seen growing appetite for experiential activations in settings like Moonlight or rooftop cinemas, where brands blend naturally with the audience experience.”
 
JD Sports invited cinemagoers to appear on the big screen alongside "The family portrait" festive ad.
 
Yet, tech for tech’s sake doesn’t always work. The key is aligning innovation with brand narratives and business goals.
 
“Digital innovation in cinema isn’t new, but what truly matters is intent and integration,” says Ooi. “When thoughtfully done, these technologies amplify campaign objectives, enhance storytelling, and boost brand affinity.”
 
A shared experience
 
In today’s fragmented media landscape, every channel must earn its place and cinema still does when used with purpose. It's one of the few remaining places where stories can be told with genuine drama while audiences lean in rather than swipe away. “The shared viewing experience adds brand credibility, as the message resonates more deeply when 300 people laugh, gasp, or interact together,” says Tandon.
 
Used well, cinema delivers more than impact; it creates a halo effect that elevates brand stature.
 
“It may not always drive the biggest reach, but in the right context, it crafts brand moments that linger long after the credits roll,” adds Ooi.
 
Cinema remains a high-attention channel with minimal distractions and is proven to outperform smaller screens in building memory associations. “Recent changes in buying cinema mean we can guarantee placements closer to trailers and film starts, further boosting audience engagement,” McQueen explains.
 
Ultimately, cinema’s real power lies in bringing together diverse audiences into one highly engaged, unified experience and linking brands with stories that resonate worldwide.
 
“Unlike fragmented digital ecosystems, cinema offers shared attention, dramatic sound, and a larger-than-life scale,” Iyer says. “It’s one of the last experiences where an entire audience feels the same emotion all at once.”