BMC’s new outdoor policy changes Mumbai’s OOH landscape but poses challenge for DOOH

Mumbai’s out-of-home (OOH) industry is entering a period of recalibration as the Brihanmumbai Municipal Corporation rolls out its new Outdoor Advertising Policy 2025. The civic body believes the policy will modernise the city’s advertising landscape, provide clearer rules for an industry long marked by uneven permissions, and enable digital formats to grow with greater confidence.

For years, Mumbai operated under a zonal framework, where hoarding sizes, permissions, and fees varied from street to street. The new policy eliminates these zone-based restrictions and introduces uniform size norms, allowing larger formats in areas where they were previously limited. 

Operators say this single change alone will reshape competition. Smaller players fear being pushed out due to higher compliance costs and increased investment, while larger networks are expected to scale quickly as bigger formats become more widely permissible.

Read On: BMC projects ₹362 cr revenue from advertising in FY 2025-26

A senior OOH consultant, speaking off the record, says the industry has waited nearly a decade for a uniform size rule, as inconsistent zoning had created pricing distortions and unpredictable tender behaviour. He believes this reset is long overdue but warns that it will also intensify bidding wars as prime corridors are redefined.

The policy introduces a new set of structural, financial, and operational requirements. These include mandatory third-party insurance, stricter stability checks, and more robust documentation for permissions. However, the question that industry leaders keep returning to is whether the rules will be enforced with the consistency and vigilance that Mumbai now urgently requires. 

“The policy is a major clean-up exercise, but he believes the next twelve months will be the most sensitive, because commercial pressure may clash with the new safety directives,” said the OOH consultant.

Streamlined Permissions, Stricter Safety Standards & Digital Expansion

Jayesh Yagnik, CEO of MOMS, believes the policy is a step in the right direction, as it finally standardises where formats can be installed. He says, “The previous ambiguity across malls, multiplexes, and petrol pumps complicated planning and increased friction for vendors. The earlier system also imposed an additional 0.5 charge on both tech and digital formats.”

Yagnik says the new fee structure removes this burden, ensuring that vendors will pay the same rent as before, without any add-ons. He believes this stability will help maintain business confidence.

Read On: Over a year after Ghatkopar crash: BMC unveils stricter hoarding rules

He highlights one of the most significant changes: a complete halt on permissions for dead-wall sites. “These walls were widely used in the past, but the BMC now considers them structurally unsuitable. No additional weight can be added, and no permission will be granted without proper stability documentation,” he adds. Yagnik says this measure will clean up a large part of the grey zone in the market.

He notes that operational and bureaucratic processes will continue as usual, with files moving through the standard channels and approvals taking their normal course. However, he adds that Mumbai is relatively disciplined in following its own rules, and the policy is already in force across the MMR.

Yagnik highlights a new requirement for approvals from electricity companies for sites near high-tension wires. He says, “While this may increase procedural complexity in some cases, it is a necessary safety measure. The new bank guarantee rule, which requires a guarantee equivalent to one year of advertisement fees, is designed to protect the BMC from vendors exiting tenders prematurely.” He adds that mandatory third-party insurance, ranging from five lakh to one crore, ensures that individuals are protected in the event of any incidents.

“The policy also rationalises sizing norms. Previously, if a zone allowed only 20 by 20 feet, owners could not exceed that limit even when the physical space permitted it. Under the new rules, locations can support sizes of up to 40 by 40 feet,” Yagnik says, adding that this flexibility encourages innovation while maintaining safety.

He says the broader ecosystem will continue functioning in much the same way, but with stronger guardrails. “The biggest change will be the growth of digital out-of-home. Mumbai’s high rental values help digital formats recover capital faster. If a digital unit costs one crore, its recovery in smaller cities is slow, but in Mumbai it is viable.”

Read On: India’s OOH market outpaces global growth at 5.8% — What’s fueling the surge?

An OOH consultant says several brands have been holding back digital budgets due to unclear policies and inconsistent permissions. He believes the reduced fee structure will unlock these budgets in the next financial cycle.

A Policy Born from Crisis, but Questions Remain on Enforcement

Much of the industry views the policy as a response to the collapse of a large hoarding in Ghatkopar earlier this year, an incident that forced Mumbai to confront structural vulnerabilities across its skyline. The new rules include a cap of 40 by 40 feet on hoarding size and mandatory structural audits. However, many in the sector note that previous policies also required audits, yet several checks were often skipped in practice.

Yuvrraj Agarwaal, CSO of Laqshya Media Group, believes the heart of the issue is enforcement. He says, “Every policy looks perfect on paper and the real question is whether it will survive the streets of Mumbai. The new policy brings stronger structural norms, digital enablement and the promise of an online approval mechanism that could finally reduce manual delays and corruption.” He adds that, in India, implementation is often the difference between a well-designed policy and one that is forgotten.

Agarwaal notes that unofficial payments have long been an open secret in the out-of-home ecosystem. He adds that if the government genuinely replaces human interfaces with transparent digital systems, it could become the sector’s single most significant reform. If not, he says, little will change beyond the paperwork.

The 40 by 40-foot cap will require oversized sites to resize, including landmark formats such as the 120 by 122-foot hoarding in Bandra, which came under scrutiny following the Ghatkopar incident. The policy also mandates audits and re-audits, but Agarwaal notes that previous rules included similar requirements, many of which were never fully executed. “You can frame a hundred rules, but if enforcement is weak, structures may still fail and corruption may persist,” he adds.

Read On: AI in OOH: Outdoor sees spike in engagement, thanks to precision & data-driven push

He welcomes the push for digital but expresses concern about luminosity caps and mandatory night-time shutdowns. Mumbai operates around the clock, and he notes that limiting night visibility could affect revenue and the city’s character. Brands may lose access to premium nighttime audiences, and the impact could be significant.

Agarwaal believes the policy will either transform the sector or become another missed opportunity. He emphasises that the outcome depends entirely on disciplined, transparent, and corruption-free implementation. “Great policies do not build great cities,” he says. “Great execution does.”

A Transformed Landscape or Just Another Policy on Paper

Mumbai’s OOH industry is now entering a phase of competitive churn. Uniform sizing is expected to create more high-impact formats across major corridors, but it may also lead to saturation and unpredictable price fluctuations. Compliance costs are likely to rise, and operational pressures will increase as older sites undergo audits, resizing, or removal.

The BMC’s policy promises clearer rules, safer structures, and a digital-friendly environment. However, operators remain cautious, as Mumbai’s history includes several well-intentioned reforms that faltered due to weak implementation.

Whether this new policy becomes a turning point or another chapter in the city’s long cycle of reform will depend on how faithfully the rules are enforced and how quickly the industry adapts to a future shaped by uniformity, digital adoption, and stricter structural discipline.