The escalating military tensions along the India-Pakistan border are not only impacting daily life in the region but are also casting a long shadow over the outdoor advertising (OOH) sector. With high-alert zones declared and a palpable sense of unease, key OOH advertising inventories in these sensitive areas are reportedly going underutilized, threatening the revenue prospects for the first half of FY25.

Typically bustling with vibrant billboards and hoardings, strategic OOH locations in border states like Punjab, Jammu and Kashmir, and Rajasthan are now witnessing a lull in advertising activity. Brands, especially those in sectors like tourism and non-essential retail, are hesitant to invest in high-visibility campaigns in regions directly affected by the security situation. This reluctance stems from concerns about both the safety of campaign installations and the potential for muted consumer engagement in such an environment.

The imposition of travel advisories and, in some instances, the temporary closure of airports in northern states have further exacerbated the underutilization of OOH inventory. Transit-oriented advertising spaces, such as those near airports and railway stations in the affected zones, are seeing a significant drop in demand as movement is restricted and people adopt a more cautious approach to travel. This directly impacts the visibility and effectiveness of OOH campaigns targeting travelers.

Mirroring the broader advertising industry’s “wait mode,” OOH advertisers and the brands that utilize this medium are largely adopting a cautious stance. New campaigns targeting these border regions are being deferred, and existing long-term contracts might see renegotiations or temporary suspensions. The focus has shifted towards monitoring the geopolitical developments and gauging the right time to resume high-impact OOH activities. This hesitancy is particularly pronounced for brands whose messaging might be perceived as insensitive or out of sync with the prevailing national mood.

As previously reported, the overall advertising expenditure (AdEx) for the first half of FY25 is projected to dip by 5-10% due to the prevailing India-Pakistan tensions. The underutilization of OOH inventory in the high-alert border zones will undoubtedly contribute to this downturn. Industry experts anticipate that the OOH sector, particularly in the affected regions, will experience a more pronounced impact compared to other advertising mediums. The lack of new bookings and the potential cancellation of existing campaigns in these areas will directly translate to lower revenue for OOH media owners.  

Key Highlights:

• India-Pakistan border tensions are leading to the underutilization of OOH advertising inventory in high-alert zones.
• Brands, especially in travel and non-essential sectors, are hesitant to advertise in these regions.  
• Travel restrictions and airport closures are compounding the woes for transit-oriented OOH advertising.
• Both advertisers and brands are adopting a “wait and see” approach, deferring new campaigns.  
• This underutilization in border areas will contribute to the expected 5-10% dip in H1 FY25 AdEx.