Pan masala OOH spend up ₹50 Cr, Delhi-NCR leads with 20% share

Pan masala brands have sharply increased their focus on outdoor advertising (OOH), driving a ₹50-₹100 crore surge in spends over the past years — with the Delhi-NCR region emerging as a key battleground for visibility. According to industry insiders, Delhi and Noida alone account for nearly 20% of the total OOH spending by pan masala companies across India.

Backed by a robust metro rail network, arterial expressways, and high-footfall retail zones, Delhi-NCR now offers a versatile and expansive outdoor media landscape. Experts say this has positioned the region as one of the most attractive OOH destinations for advertisers looking to maintain high brand recall and visibility.

While exact OOH expenditures for pan masala brands aren’t publicly disclosed, experts reasonably suggest that 10–15% of a major brand’s ₹400–550 crore annual ad budget (i.e. ₹40–80 crore) is allocated to targeted, high-impact OOH campaigns during key periods with brands like Vimal, Kamla Pasand, Rajnigandha investing heavily in OOH campaigns.

“Delhi–NCR offers a rare combination of high-impact inventory, consistent urban footfall, and relatively lenient regional regulations, making it a sweet spot for pan masala advertisers,” said Divyaraj Shrivastava, Co-Founder & COO of Smartags Pvt. Ltd. “Unlike Maharashtra or Tamil Nadu, Delhi and Noida allow greater creative leeway, which pan masala brands are quick to leverage.”

Shrivastava said, “Pan masala brands collectively contribute upwards of ₹600–700 crore annually to India’s OOH ecosystem. Delhi and Noida together account for an estimated 15–20% of pan masala’s total OOH budget in India, as per insights from the Indian Outdoor Advertising Association (IOAA) and regional media planners.”

The total market size of the pan masala category stood at ₹44,973 crore in 2023, and is expected to touch ₹62,067.7 crore by 2032, growing at a CAGR of 3.8%, according to IMARC. Industry observers note that as the category expands, advertising spend is rising in tandem.

A 2024 EY-FICCI report highlighted that Tier 1 city outdoor ad spends grew by 18% year-on-year, with NCR standing out due to its demographic advantage and infrastructure depth.

Dr. Yogesh Lakhani, CMD of Bright Outdoor Media, explained, "I believe, Delhi and Noida are important markets for pan masala brands due to their strong consumer base and strategic trade significance. The region’s urban layout—with high-traffic routes, expressways, and metro connectivity—offers ample opportunity for impactful large-format outdoor visibility. Additionally, the NCR belt acts as a key distribution and retail hub, making OOH a useful tool to engage both consumers and trade partners. With multiple brands vying for attention in the same space, visibility through outdoor media naturally becomes more competitive and prominent in these markets.”

Lakhani said “In my opinion, Pan masala brands are among the top spenders in the OOH sector, allocating an estimated ₹50 -100 crore annually nationwide. Their campaigns are consistent and high-impact, often aligned with festivals, events, or movie tie-ins. Spending is distributed across static hoardings, transit media, airport branding, and increasingly, DOOH formats in major metros.

While OOH is a critical visibility tool, it’s often part of a broader media strategy. “Pan masala or related categories mostly use ambush marketing. OOH typically accounts for only around 10% of their total advertising budget, which is otherwise spread across TV, OTT, and on-ground activations,” noted Alok Gupta, Director at OOH agency Graphisads.

Still, within the OOH segment, the presence of pan masala brands is both prominent and persistent. Their campaigns often coincide with festivals, sporting events, and film releases, utilizing static hoardings, transit media, airport placements, and increasingly, digital OOH (DOOH) screens in major metros.

Experts suggest that with the pan masala market projected to cross ₹62,000 crore by 2032, outdoor advertising—especially in Delhi-NCR underscores a broader shift toward hyper-local, high-return media planning.