Airport advertising takes a flight in post-Covid travel boom: Ad rates soar 10-15%

Posted on 21st Jan 2025

Post Covid, airport advertising has seen several new categories such as medical service providers, educational institutions, and leading regional brands, say industry experts

With the post-Covid surge in travel, airports have transformed into more than transit hubs; they’re high-impact advertising arenas. As passengers return in record numbers, brands are seizing the opportunity to captivate audiences on the move.

According to ICRA, during H1 FY25, the domestic air passenger traffic stood at 79.3 million, witnessing a YoY growth of 5.3%. The international passenger traffic growth for Indian carriers was healthier at 16.2% in H1 FY25. This momentum is expected to continue for the balance part of FY2025 as well, reaching an estimated level of 34-36 million for the full year, representing a YoY growth of 15-20%.

As per Media Ant’s data, Delhi Airport itself has 6.8 million passengers monthly, out of which 4.8 million are domestic and 1.9 million are international travellers. Now imagine the eyeballs a brand gathers by advertising at just one metro city’s airport!

Rohit Chopra, COO, Times OOH believes, India has been one of the few countries to emerge from the COVID-19 effects with notable success, particularly in the air travel sector. Not only did we revive air traffic faster than expected, but Indian air travel also surpassed the trends noted in 2019.

“By 2023, India’s domestic air passenger volume consistently exceeded 4 crore travellers per month, demonstrating robust growth, and Indian carriers reported a 30% increase in international long-haul flight capacity compared to 2019,” he said.

This encouraging trend has had a direct impact on airport advertising, which has seen a sharp uptick in both clientele and income.

Pramod Bhandula, Executive Chairman of JCDecaux Advertising India, too agreed. “Post- Covid surge has impacted OOH airport market in the sense that brands are able to get more eyeballs. It is important to note that airport advertising has always been important. Indeed, global and local JCDecaux internal studies have proven that brands that advertise at airports are viewed as more premium. Their perception and positioning in the minds of their target market benefits by using such media.”

Ad rates take off too

With the airports hustling-bustling with footfall, the ad rates too have seen a notable jump.

“While the exact rate of increase varies depending on the airport and its passenger volume, rates have seen an approximate uplift of 10-15% across most major airports. This adjustment reflects the higher demand for premium advertising spaces in high-traffic areas,” mentioned Chopra.

Media Ant data suggests that a digital screen can cost a minimum of Rs 500 where 15 Sec video ads will be played on a loop of 4 minutes. Each screen provides 330 spots per day which operates daily 22 hours. Similarly, a traditional hoarding cost at least Rs 3.5 lakh for 7 days varying upon the spot and size of the billboard.

Even though pricing is based on the demand for inventory at any particular moment, the JCDecaux executive emphasized that more and more companies are seeing the benefits of investing in airports due to factors including increased passenger traffic, scientific media placement, and best-in-market inventory.

A Lexus marketing executive shared, “When we look at airport branding, we focus more on chartered flights and the VVIP Lounge area. From branding the luxurious arrival in a Lexus to in-flight promotions, it's a complete end-to-end marketing.”

From an overall point of view, every year costs go up by 7-8% and there is definitely a shift in experience, as per him.

Tier 2 connectivity makes it better

Expansion in airline services has connected tier 2 cities like Lucknow, Bhubaneswar, Indore with metro cities and beyond. Some of these cities have emerged as attractive destinations, others serve as gateways to other places of interest. This provides newer avenues for hyperlocal brands to advertise at airports as well, say experts.

The surge in passenger traffic created a pressing need to expand airport ad inventory, as per Chopra. “While airports in metro cities are already well-utilized and saturated in terms of inventory variety, non-metro airports have emerged as promising opportunities. Post-Covid, we’ve seen tremendous advertiser interest in these regions, leading Times OOH to launch new DOOH (Digital Out-of-Home) inventories at Coimbatore and Trichy airports. The Chennai airport got a new terminal along with new-age display formats that support anamorphic campaigns. Also, the Chandigarh airport got revamped with a new set of media formats.”

These additions ensure greater visibility for brands and enable them to tap into a broader audience including international travellers.

Newer advertiser interest emerges

Airport advertising has always attracted premium categories such as real estate, luxury, jewellery, infrastructure, and products targeting international travellers, such as hotels and OTT platforms.

Chopra mentioned, “Post Covid, we have seen diversification with new entrants such as medical service providers, educational institutions, and leading regional brands. This shift highlights the broader recognition of airports as a powerful touchpoint for reaching diverse audiences.”

He further highlighted, industries like healthcare, e-commerce, and regional businesses have emerged as significant contributors to airport advertising. This reflects a shift towards addressing immediate consumer needs and creating brand visibility in a space where trust and quality are paramount.

“The beauty of airport advertising is that you are able to cater to multiple target markets. It has always been a sought-after media,” said Bhandula.

In conclusion, the resurgence of air travel has elevated airports from mere transit points to powerful advertising arenas, offering brands a golden opportunity to engage with premium, diverse, and captive audiences.