Market Insights Advertising & Media Advertising

Cinema Advertising - South Africa

South Africa

Ad spending in the Cinema Advertising market is projected to reach US$7.70m in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2029) of 6.96%, resulting in a projected market volume of US$10.78m by 2029.
With a projected market volume of US$952.00m in 2024, most revenue will be generated in the United States.
In the Cinema Advertising market, the number of viewers is expected to amount to 6.2m users by 2029.
The average ad spending per viewer in the Cinema Advertising market is projected to amount to US$1.44 in 2024.

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Analyst Opinion

The Cinema Advertising market in South Africa is experiencing significant growth and development.

Customer preferences: Customers in South Africa have shown a strong preference for cinema advertising due to its immersive and engaging nature. The large screens, high-quality sound systems, and comfortable seating in cinemas provide an ideal environment for brands to capture the attention of consumers. Additionally, cinema advertising offers a unique opportunity for brands to target a captive audience, as moviegoers are typically more receptive to advertisements during their cinema experience.

Trends in the market: One of the key trends in the South African cinema advertising market is the increasing adoption of digital technology. Digital cinema advertising allows for greater flexibility and creativity in terms of content delivery, as well as the ability to target specific audiences based on demographics and viewing habits. This trend is driven by advancements in digital projection technology and the growing availability of digital cinema networks across the country. Another trend in the market is the rise of partnerships between cinema operators and advertising agencies. These partnerships enable cinema operators to leverage the expertise of advertising agencies in creating compelling and effective advertisements, while also providing agencies with access to a captive audience. This collaboration has led to the development of innovative advertising formats and campaigns that resonate with South African consumers.

Local special circumstances: South Africa has a vibrant film industry, with a growing number of local films being produced and distributed each year. This presents a unique opportunity for brands to align themselves with local content and connect with audiences on a deeper level. By incorporating local actors, settings, and storylines into their advertisements, brands can tap into the cultural identity and pride of South African consumers.

Underlying macroeconomic factors: The South African economy has been experiencing steady growth in recent years, which has contributed to the expansion of the cinema advertising market. As disposable incomes increase, consumers have more discretionary spending power, making them attractive targets for advertisers. Additionally, the growing middle class in South Africa has led to an increase in cinema attendance, creating a larger audience for advertisers to reach. In conclusion, the Cinema Advertising market in South Africa is thriving due to customer preferences for an immersive and engaging advertising experience, the adoption of digital technology, partnerships between cinema operators and advertising agencies, the presence of a vibrant local film industry, and the underlying macroeconomic factors of economic growth and an expanding middle class.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on the Cinema Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising both on and off screen in cinemas, including ads shown before a movie and those displayed inside a cinema.

Modeling approach / market size:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets.as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, reported performance indicators of key market players as well as performance factors (e.g., user penetration and usage) to analyze the markets.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.