Cinema advertising may have the advantage of getting the audience’s focused attention over other media, but it still rakes in total revenues of merely Rs 200 to 300 cr. One player that has contributed significantly towards these figures, and is hopeful of the medium’s growth, is PVR Cinemas. Gautam Dutta, COO, PVR Cinemas, spoke to shobhana nair about the concrete steps taken by the brand to register in the minds of key decision makers.
Q] Cinema advertising in India is growing, although brands are yet to realise its full potential. How much has PVR contributed towards its growth?
PVR has a giant share in cinema advertising, which is perhaps more than what the players bring on to the table collectively. There is evidence that PVR is far ahead of the pack and has taken pioneering initiatives to garner this kind of leadership position. Starting from what we sell, where we sell, the concept, the design team internally, and the vast magnitude of work we do with our clients to give them the value on this space is unparallel. 71 million people come to PVR Cinemas and in terms of cinema revenues, we are perhaps bigger than some of the publications. We are also bigger than some of the channels for the kind of advertising revenues that we make.
Q] What is the brand model that has worked for PVR?
The brand model that we work on is called the FERD, which stands for Familiarity, Esteem, Relatability and Differentiation. We believe our medium is uniquely placed to offer all four. We can offer familiarity as we have the strength of 70 million people watching movies at more than 92 cinemas in 37 cities. Brand esteem comes in because it is a place where star cast visits and premieres happen. Basically, this medium can help one amplify any USP of a product or service and give a real time experience. In fact, there isn’t any other medium in the country which delivers mass but quality audience, and hence it is a very people medium to be in.
Q] Which sectors rely heavily on cinema advertising?
Huge trends do occur which is very cyclical. Automobiles and Telecom are two very steady sectors which target discerning audiences. Electronics is another sector which advertises regularly, but more than that, sectors like education, FMCG and real estate are some of the new entrants which will emerge strong.
Q] How much does cinema advertising contribute towards the overall revenues for PVR?
12% of revenues come from Cinema Advertising in PVR and we are targeting Rs 148 cr in 2013-14. This first quarter, we have already touched Rs 32 cr, which also includes Cinemax which we acquired last year. In fact, last year, in the first quarter, we were at Rs 19 cr, which means we’ve seen a steady growth of 67%.
Q] There are still media planners who believe that cinema when converted to cost per thousand is an expensive medium as compared to tv and print. How do you convince them?
We have done a lot of calculation on CPT and there’s no doubt about any mass channel giving you more audience. Clients looking for SEC A1, A2, B1, B2, need to look at the numbers. These channels also deliver you a lot of riff-raff, which are SEC C and D. We sell a ticket at a premium, which is eight times more than what a ticket costs at a single screen.
If a consumer is paying me eight times more for the same product you can imagine the profile of that consumer. This person is glued to the screen. His mindset is very relaxed and that mood is very crucial to make a positive impression on a product which ultimately leads to the purchase decision. So keeping all these factors one needs to calculate.
If you are keeping mass as your base, then of course our CPT is more expensive however what we deliver is unparallel impact and a certain class of audience. Even in a place like Latur, we are talking to the most discerning audiences in that area as our tickets are 25% more expensive than any other cinema hall. So if he is willing to pay more, then he will be ready to pay even more for a quality product.
Q] Also, the major concern for planners is audience measurability. How are you tackling that? Is Pay-Pereyeball a probable solution?
We have got HUL and Kotak who have signed on the dotted line for this plan. We are insulating all advertisers on two accounts. Firstly, the fate of a movie becomes irrelevant as we will guarantee the advertiser a certain numbers of audience. This audience may take one day or even hundred days, but will be delivered. And secondly, whenever a product has a certain campaign; media planners seek an ‘x’ number of eyeballs for that campaign and within that we guarantee them that number. This works brilliantly as we keep a complete log for every ticket sold. So if only four people are in the auditorium we will charge you only for that number.
So unlike earlier times, when an advertiser associated with a movie featuring A-list stars, the entire strategy seems to be changing with more focus on eyeballs. Yes, the recently released The Lunchbox was viewed by a niche audience. And hence, a brand seeking this kind of audience will only opt for this movie but a mass brand would prefer to advertise during Phata Poster Nikla Hero.
Q] It is a long road ahead, but what are the steps you are resorting to increase awareness among the decision makers?
We’ve tried to provide education about the medium. We did shows in Delhi where we invited close to 300 planners and showcased all the innovative platforms that could be planned around Cinema Advertising. We also did this in Mumbai and called another 350 planners to watch the first show of Lootera. We are trying to educate them and change their perception as they are not even factually correct about the footfalls at PVR. The reality is 1.5 crore footfalls while the perception is just in lakhs.
Q] How do you foresee the growth of the entire Cinema Advertising business?
I feel this medium has still not received its due and within a few years, people will realize its full otential. We may be a small player in the overall advertising pie among all media but in the years to come, this will become a lethal medium due to the impact it can deliver. Creative minds and media planners will not discount the medium and will have to focus on solutions around cinema as a medium, which I believe will be viewed very differently in the future.
Feedback: shobhana.nair@exchange4media.com
