New research has highlighted that 27% of total media spend on digital ads in live entertainment is wasted due to low audience engagement.

This translates to £70 million in lost revenue for the West End and £90.1 million ($120 million) for Broadway.

The report titled ‘MEH: The cost of Dull in Entertainment Advertising’, from performance marketing agency Sine Digital, draws from over a billion data points collected across five years.

According to the study, in the wider UK advertising industry, “dull” digital adverts cost advertisers £8.6 billion annually.

“Many organisations simply can’t afford this level of inefficiency,” said James Dale, CEO at SINE Digital.

“For theatres and entertainment brands already operating on tight margins, losing more than a quarter of their spend to uninspiring ads can mean the difference between a production thriving or closing early.”

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The research analyses the effects of data-driven creative on performance using a sample of 20,000 ads.

Dale continued: “Marketers can no longer lean on traditional media buying clout alone. This report gives decision-makers hard evidence that emotionally resonant and data-informed creative isn’t just preferable. It is essential.”

“We’ve used AI to break down what ‘boring’ really means to audiences,” Dale added. “By profiling ads through a psychological lens, we are bringing a new level of clarity to creative strategy.”

According to data from the audience insights platform GWI, theatre goers aged 16-34 make up 41% of UK and US audiences in 2024, having grown 15% from 2023.

Sine highlighted that the changing demographic for theatre means advertisers should create adverts to capture their attention and not treat them as a monolith.

It said: “Theatre marketing must be strategically tailored to their [Gen Z] distinct behaviours, ensuring campaigns align with
their diverse interests, values and personalities.”