PVR-INOX has secured an advertising deal for FY25 with its long-time business partner, Khushi Advertising Ideas Pvt. Ltd (KAIPL), to continues its stance in the cinema advertising space. As per the company, the new partnership with Khushi Advertising marks a significant step forward for PVR-INOX.
The five-year contract is aimed at managing cinema advertising sales in the South India market, with Khushi Advertising appointed as the exclusive ad-sales affiliate for this region. This alliance is set to strengthen PVR-INOX’s leadership and market share in South Indian cinema advertising, a region that holds great importance for the cinema exhibition industry.
Gautam Dutta, CEO – Revenue and Operations of PVR INOX, “This new strategic partnership between two leaders in the industry goes beyond the transactional value. It aims to reform the market, provide better control over market narratives and commercials, and most importantly, uphold the value of cinema advertising among our esteemed advertisers and trade partners, who have been an integral part of our success. Traditionally, advertising sales contributed 10-11% of our total revenue, but post-COVID, that contribution dipped to around 7-8% as we were on a recovery path. We strongly anticipate that this partnership, along with our ongoing leadership initiatives, will strengthen our ad-sales contribution and help us return to pre-COVID levels. We look forward to the success of this partnership.”
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The partnership reflects the confidence in the future potential of cinema advertising, which saw a growth rate of 36% last year—one of the highest in the Indian media space. This growth rate is expected to sustain, with the market Ad-Ex projected to grow by 12% this year.
“The South Indian film industry has experienced phenomenal growth, with blockbuster hits like KGF 2, RRR, Salaar Part 1: Ceasefire, and Pushpa driving robust advertising activity and fostering a passionate fanbase. With highly anticipated releases such as Vettaiyan, Kanguva and Pushpa 2 scheduled for this year, 2024 is set to be the ‘Year of South Movie Dominance.’ To leverage this momentum, we are excited to announce our strategic partnership with PVR Inox, which will significantly expand our advertising footprint in South India. This collaboration allows us to tap into a dynamic audience through highly impactful advertising campaigns linked to our diverse lineup of films, creating lucrative opportunities for brands to engage effectively. Together with PVR Inox, we are poised to enhance advertising revenues and deliver your message directly to your target audience, no matter where they choose to engage,” Vishnu Telang, CEO, Khushi Advertising Ideas Pvt. Ltd., stated.
KAIPL and PVR INOX share a decade-long business association within the cinema exhibition industry.