Cinema Advertising - GCC

GCC

Highlights

In the GCC, ad spending in the Cinema Advertising market market is projected to reach US$43.33m in 2024.
The ad spending in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 6.95%, leading to a projected market volume of US$60.63m by 2029.
While a significant portion of revenue will be generated the United States, the GCC market will also contribute to the overall growth.
By 2029, the number of viewers in the Cinema Advertising market market in the GCC is expected to amount to 14.3m users.
Furthermore, the average ad spending per viewer in the Cinema Advertising market market within the GCC is projected to be US$3.62 in 2024.
In the GCC, cinema advertising is experiencing a renaissance as brands increasingly leverage immersive experiences to engage audiences in a rapidly evolving media landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema Advertising market in GCC is experiencing steady growth due to increasing customer preferences for immersive and engaging advertising experiences.

Customer preferences: Customers in the GCC region are increasingly seeking unique and memorable advertising experiences. Traditional forms of advertising, such as television and print, are becoming less effective in capturing their attention. As a result, cinema advertising has emerged as a popular choice for brands looking to engage with their target audience in a more impactful way. The large screens, high-quality audio, and immersive environment of cinemas offer a unique platform for brands to showcase their products and services.

Trends in the market: One of the key trends in the Cinema Advertising market in the GCC is the rise of digital cinema advertising. Digital technology has transformed the cinema industry, enabling advertisers to deliver dynamic and interactive content to audiences. Digital cinema advertising allows for greater flexibility in terms of content creation and distribution, as well as the ability to target specific demographics. This trend is expected to continue driving growth in the market as more cinemas in the GCC region adopt digital projection systems. Another trend in the market is the increasing collaboration between cinemas and advertisers. Cinemas are actively seeking partnerships with brands to create customized advertising campaigns that align with the moviegoing experience. This collaboration allows advertisers to leverage the popularity and reach of cinemas while providing a unique and engaging experience for moviegoers. Such partnerships often include innovative advertising formats, such as pre-show entertainment, interactive displays, and experiential activations, which further enhance customer engagement.

Local special circumstances: The GCC region has a high cinema attendance rate, with a significant portion of the population regularly visiting cinemas for entertainment. This presents a unique opportunity for advertisers to reach a captive audience in a distraction-free environment. Additionally, the GCC region has a diverse population with different cultural backgrounds and preferences. Advertisers need to consider these cultural nuances when creating cinema advertising campaigns to ensure they resonate with the target audience.

Underlying macroeconomic factors: The GCC region is witnessing rapid economic growth, driven by factors such as population growth, urbanization, and increased disposable income. This economic growth has led to an expansion of the cinema industry, with new multiplexes and theaters being built across the region. The growth in the cinema industry, coupled with the increasing popularity of cinema advertising, has created a favorable environment for advertisers to invest in this medium. In conclusion, the Cinema Advertising market in GCC is experiencing growth due to customer preferences for immersive and engaging advertising experiences. The rise of digital cinema advertising and the increasing collaboration between cinemas and advertisers are key trends driving this growth. The high cinema attendance rate and diverse population in the GCC region present unique opportunities for advertisers. Additionally, the region's rapid economic growth and expansion of the cinema industry contribute to the development of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), 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, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

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 market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. 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.