.jpg)
The Indian advertising industry, poised for a year of cautious optimism, now finds itself navigating fresh turbulence. India’s military strikes on Pakistan-based terror camps on May 7 following the terror attack in Pahalgam on April 22 that killed 26 civilians, has prompted marketers to reassess their plans.
Advertisers across key verticals—travel, hospitality, luxury, retail, and even FMCG—have hit pause on advertising spends following heightened geopolitical tensions, industry leaders told e4m.
According to top agencies, hundreds of live and upcoming campaigns have already been postponed by large advertisers. Outdoor advertising has taken the earliest hit, with northern airports shut for hours and air travel disrupted, impacting brands reliant on transit visibility.
“Travel and hospitality brands are cautious in their approach and have deferred their campaigns for at least two weeks. They know consumers are not very sure of their summer holiday plans as of now, especially those who had planned to travel to Islamic countries,” said Yuvrraj Agarwaal, Chief Strategy Officer, Laqshya Media Group.
Saibal Gupta, CEO, Xperia Group, echoed the concern, “The uncertainty over the last few weeks has been startling. No one knows what is going to happen next. Several outdoor advertisers, especially travel brands, which advertise during the holiday season, have asked us to wait for now. If the tension prevails, the deadlock will extend.”
Several FMCG players have also put their campaigns on hold until the situation de-escalates, shared Dipankar Sanyal, CEO, Platinum Communications.
Anil Solanki, senior media strategist and industry commentator, added, “In moments of national tension, most brands adopt a watchful approach—toning down celebratory or humorous messaging and aligning with the prevailing patriotic or empathetic mood of the nation.”
“Categories like automotive, travel, and luxury retail are often the first to reassess media investments during geopolitical unrest, given their dependence on consumer confidence and macroeconomic stability,” he added.
News consumption up, but ad spends may not
Periods of geopolitical stress typically lead to a spike in news consumption—both TV and digital—which in turn causes a short-term shift in media spends.
With high-attention audiences flocking to platforms like Inshorts and Dailyhunt, news inventory is seeing a fill-up. However, this temporary gain is offset by broad pullbacks in discretionary ad spending.
“A spike in news viewership doesn’t automatically translate to higher ad spends,” noted Shashi Sinha, CEO of IPG Mediabrands India. “With non-stop conflict coverage, TV inventory often shrinks—and many brands prefer to steer clear of advertising alongside such sensitive content.”
Recovery to Risk
This crisis came just as the industry was gearing up for a strong fiscal—buoyed by an improved GDP outlook, cooling inflation, and pro-business developments such as the UK-India Free Trade Agreement signed earlier this week.
“The mood was finally shifting from survival to growth,” said a senior media planner at a global agency. “But war talk, however distant, changes sentiment fast. The growing military build-up on the western border has revived fears of consumer pessimism and delayed investment cycles.”
“Whenever war clouds gather, advertising is among the first sectors to see pullbacks,” said the head of a leading media agency. “The industry becomes risk-averse. Budgets are re-evaluated, campaigns get paused, and contingency planning kicks in.”
If tensions deepen into full-blown conflict—a possibility many defence experts downplay—advertisers are expected to adopt a risk-off stance.
Beyond the border narrative, brands are also bracing for indirect economic consequences. A retaliatory stance by Pakistan or disruptions to trade routes could stoke inflationary pressures.
“If oil prices rise or the rupee weakens, it affects everything from logistics to digital ad imports,” warned the CFO of a top e-commerce platform. “Even a 10% swing in the dollar changes how we spend.”
A Call for Composure
Even as some brands recalibrate, veteran adman Dr. Sandeep Goyal, MD, Rediffusion, urges marketers to avoid knee-jerk reactions.
“It is a tense situation. So far, markets have held steady—no sign of panic. Most brands will for now most likely maintain a ‘business as usual’ stance. And that is the right thing to do in the given circumstances. Any signs of panic would be cowardly and counterproductive,” Goyal told e4m.
Messaging Under the Microscope
A rise in nationalism is also prompting brands and agencies to review their creative strategy.
“Brands may pivot to patriotic storytelling or adopt a more localised, ‘India-first’ approach,” said a senior strategist at a creative agency. “At the same time, anything perceived as tone-deaf or globalist might trigger social media backlash.”
Some advertisers are already auditing scripts and partnerships to avoid messaging missteps or cross-border sensitivities.
Q1 Outlook: Wait and Watch
For now, there’s no panic—but the industry is clearly shifting into wait-and-watch mode.
“It’s not a crisis yet,” said a senior media buyer. “But if tensions escalate, especially around global trade or oil, the first casualty will be discretionary ad spending.”
.jpg)
