Festive rush: D2C brands double spends on regional markets, CPMs up 30% across platforms

As India enters its festive peak, regional advertising has emerged as a key strategic focus for marketers. No longer confined to metro audiences, brands, especially in the fast-growing Direct-to-Consumer (D2C) segment are increasingly tailoring their campaigns to connect with regional consumers across digital and traditional channels.

With rising disposable incomes and internet penetration in Tier-II and Tier-III cities, advertisers are recognising the immense potential of vernacular markets. This shift is prompting brands to invest in localised storytelling, influencer partnerships, and language-specific content across social media, OTT platforms, and regional television.

Read e4m deep dive on FMCG festive data 

Brands are nearly doubling their regional marketing spends this festive season, with 25-40% of festive media budgets now directed towards regional and Tier 2/3 campaigns, up from about 20-25% last year. 

As both traditional and D2C brands ramp up their presence, regional ad inventories across digital, TV, and print have grown more competitive and expensive. Experts report a 15-30% rise in CPMs across regional OTT platforms, YouTube vernacular channels, and local influencer content, while TV and print are seeing record advance bookings in states like Tamil Nadu, Maharashtra, and West Bengal, where festive sentiment drives strong consumer spending.

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Nisha Khatri, Head of Marketing at Libas said, “We have doubled our regional marketing allocation this year, driven by our retail expansion in Tier 2 and Tier 3 markets, which are becoming increasingly important for us.”

MARS Cosmetics too is significantly increasing its focus on regional advertising this festive season, allocating about 35–40% of its marketing budget to the segment, up from around 20% last year.

Rasika Prashant, CMO, Tata Soulfull, said: "Regional marketing is central to our festive strategy at Tata Soulfull. We’ve seen that hyperlocal relevance drives stronger engagement, so we actively tailor both products and communication to regional tastes and languages. For instance, our Masala Oats portfolio includes variants like Gondhoraj for Kolkata and Misal for Mumbai, while our No Maida Rusk is promoted in Bengali, Odiya, Assamese for West Bengal, Orrisa, Assam respectively. We also run region-specific ad campaigns at a pin-code level for categories like Muesli across metros such as Bengaluru, Delhi and Mumbai. Digital remains our primary platform because it allows sharp vernacular targeting, but we’re complementing it with local product sampling events, and impactful on ground visibility like Manoj Bajpayee-led dealer boards in Hindi Speaking states. This mix ensures we stay culturally relevant while reaching Tier 2 and 3 audiences with precision.”

The festive marketing playbook

“We have seen strong engagement when we create locally relevant content, so this year we’re investing more in regional language creative production and city-specific campaigns to reach Tier 2 and Tier 3 audiences,” said Anmol Sahai Mathur, Vice President – Marketing, MARS Cosmetics.

Industry experts noted that last year, regional was an experiment; this year, it’s a strategy. According to Vinit Patil, Creative Director at SW Network, D2C advertisers are reallocating 25-40% of their incremental festive media budgets towards regional and Tier 2/3 activations, marking a new, additive investment driven by localised creatives, regional influencers, and targeted media buys.

Read e4m report on ecommerce and festive ad spends

Patil highlighted, “The key drivers here are improved mobile penetration outside metros, higher conversion rates from vernacular creatives, and cheaper acquisition via regional creators on short-form platforms.” The range varies across D2C categories — F&B, grocery, and FMCG are rapidly scaling regionally, while fashion and premium segments remain metro-focused but are expanding faster in select Tier 2 markets.

D2C brands are now proactively seeking region-specific briefs, moving beyond simple translations.

How have consumer sentiments impacted festive ad spends. Read here

Kruthika Ravindran, Director – Key Accounts at TheSmallBigIdea, noted that briefs have become increasingly granular. “Brands are demanding plans that go deep, tailoring budgets, messaging, and content mixes by state, language, and even micro-markets within Tier 2/3 cities. There's a strong call for hyperlocal influencer pools, creative local talent, and vernacular content that speaks directly to the audience.” According to her, up to 40% of festive marketing budgets are now being channelled into regional and Tier 2/3 campaigns, up from about 25% last year.

The surge in regional advertising has also reshaped media dynamics, turning what was once a niche into premium inventory. 

Ravindran noted that digital CPMs for vernacular ads in Tier 2 and 3 cities have risen 25–30% year-on-year, with TV slots and regional print editions getting booked well in advance. She added that the festive season has turned regional media into a seller’s market, making early planning and agile creative strategies essential for brands to stay competitive.

Patil further observed that CPMs have risen by 15–20% across regional OTT, YouTube vernacular channels, and influencer content, while regional TV and print are witnessing record advance bookings in markets like Tamil Nadu, Maharashtra, and West Bengal, driven by strong festive demand.

Media mix

For D2C brands, digital continues to command the largest share of marketing spends, and the festive season is no exception. The period typically sees heightened activity across social media, influencer collaborations, performance marketing, and regional OTT platforms, as brands aim to capture high-intent shoppers and maximise conversions through targeted digital campaigns.

MARS Cosmetics follows a digital-first strategy with on-ground support, focusing on regional influencers, creator-led videos, and performance marketing in local languages across digital platforms. It also runs retail activations and creates multi-language content to build stronger local connections. 

The brand is also partnering with a diverse network of regional beauty creators, makeup artists, lifestyle influencers, and local talent to deliver authentic, language-first storytelling. “We measure effectiveness through engagement metrics (views, saves, comments in local languages), traffic and conversion uplift on e-commerce partners, and impact on sales in focus cities post-activation,” said Mathur. 

Libas, however, is pursuing an omnichannel strategy, currently operating at a 60:40 online-to-offline split, with plans to move closer to 50:50 as retail presence expands. Khatri stated, “As a digital-first brand, the majority of our communication is online, primarily across Meta and Google. However, over the past year and a half, we’ve also increased our focus on on-ground activations such as in-store events and physical advertising.” Collaborating with regional creators continues to be a key focus for the brand as well.

Experts noted that while digital continues to lead, traditional channels remain integral to brands’ festive marketing mix. 

Ravindran underscored the importance of the phygital approach. “The real winner is a 'phygital' approach, leading with digital but amplified by targeted print, radio, outdoor ads to build the trust and reach that matter most during the festive season.”

Patil estimated that about 65% of D2C brands’ regional festive spends go to digital channels such as reels, vernacular platforms, and influencer content, valued for their speed and targeting. The remaining 35%, he noted, goes to TV, print, and radio, which help build trust and long-term brand affinity.

Year-long priority?

D2C Brands increasingly view regional marketing as a year-round priority rather than a festive-only focus. Many believe that sustained regional engagement helps build deeper connections, drive consistent brand recall, and tap into the growing purchasing power of non-metro consumers beyond the festive surge.

Khatri stated, “With our expanding retail footprint in regional markets, this focus is no longer seasonal but a sustained priority, ensuring we remain deeply relevant and accessible to consumers across India.”

For MARS Cosmetics, regional has become a core pillar of its marketing strategy, not just a festive push. Tier 2 and Tier 3 beauty consumers are now exploring, experimenting, and purchasing year-round. The brand sees local language content and grassroots influencer networks as key drivers of trust and conversion beyond seasonal peaks.

Patil further highlighted that Tier-2/3 are no longer ‘the next India’, they ARE India. “And when the entire brand world suddenly realises this, the local tongue turns into luxury real estate. The smart marketers aren't just paying more; they are paying early. Because in regional advertising, timing isn't everything. It's the only thing,” he concluded.