Festive ad spends to sparkle this year with 18–20% growth; e-commerce may lead the charge

As India gears up for its biggest consumption window of the year, advertisers are once again sharpening their pencils. According to industry experts, this festive season will see the bulk of marketing spends coming from e-commerce, smartphones, consumer durables, automobiles and FMCG - together accounting for nearly half of overall festive budgets. E-commerce alone is expected to account for nearly a quarter of festive budgets, mirroring consumer trends where 64% plan to shop for clothing and fashion, according to Hansa Research. Jewellery too remains a steady spender during the gifting-heavy period. 

Festive advertising expenditure is set to record healthy growth this year, with experts pegging the rise at anywhere between 12% and 20% over 2024. While some estimate overall spends trending up by 10–12%, others point to a sharper surge of 18–20%, clearly outpacing last year’s 12–13% growth rate. Improved consumer sentiment, a stronger pipeline of launches, and heightened competition during mega sale events are all driving this momentum. Media planners also note that digital channels continue to lead the charge, accounting for a growing share of festive budgets, even as television and print remain vital for mass reach.

Also read: Q-comm platforms double rates ahead of festivals

Consumer appetite backs this trend. The Hansa Research Festive Insights 2025 report shows clothing and fashion leading festive purchases at 64%, followed by sweets and snacks at 52%. Lifestyle categories such as electronics, gadgets, and home décor also feature strongly at 40%. With 35% of consumers planning to spend 25–50% more and nearly 30% expecting to spend 50% more than usual, the findings point to robust discretionary spending. This, in turn, indicates that the very categories driving consumer demand are also likely to dominate marketing spends as brands battle for festive visibility.

Alongside the established leaders, emerging segments are stepping up their game. Quick-commerce platforms, D2C players in beauty, fashion and personal care, as well as fintech, gaming, edtech, and travel brands are all ramping up visibility. “They may not yet match the big categories in volume, but their festive spends are growing at over 20% year-on-year, showing clear intent to leverage the season for long-term brand building,” said Anil Solanki, Media Lead at Dentsu X.

Also read: eComm ad spends set to rise 30%

Reflecting these trends, brands are already rolling out festive campaigns to capture consumer attention.

YES BANK unveiled its annual NRI Homecoming campaign, combining digital visibility and product-led communication to connect with NRIs returning to India, with a focus on family values and enriching festive experiences. 

Nipun Kaushal, Chief Marketing Officer and Head CSR of YES BANK, said, “As a Pan-India bank, we celebrate local traditions, regional flavours, and festive moments deeply rooted in family values alongside our customers. Staying true to our ethos of Life Ko Banao Rich, we go beyond banking by becoming part of their everyday lives, transforming product features into meaningful benefits that enrich their journey, while crafting conversations with the power of GenAI.”

Others such as Taneira, the ethnic wear brand from the House of Tata, has launched its festive campaign ‘The Gift of Pure Love’, celebrating the bonds that make gifting meaningful, alongside the Miara festive saree collection. Oben Electric rolled out its ‘Mega Festive Utsav’ with offers on its Rorr EZ range, aimed at making e-motorcycles more accessible and accelerating EV adoption. 

Also Read: How global brands are localizing for Indian festivals

Industry leaders attribute this surge to a mix of factors - stronger consumer sentiment after a relatively muted first half, policy support such as GST rationalisation on select categories, and heightened competition around mega sale events. “The ability of commerce media to directly link advertising to transactions is another key reason brands are moving more budgets into these channels,” observed Rajiv Dingra, Founder and CEO of ReBid.

Adding to this perspective, Vaishal Dalal, Co-founder & Director, Excellent Publicity, pointed out that categories like e-commerce, consumer durables, automobiles, and smartphones have each grown in double digits compared to 2024, while FMCG and retail have held steady. “The sharper acceleration this year is visible in digital-first categories that are aggressively tapping festive consumption,” he said, noting that overall festive ad spends in 2025 have risen by 18–20% year-on-year, outpacing last year’s 12-13% growth.

This was further reiterated by Vikas Nowal, Founder & CEO of Interspace Communications, who suggested that during and after Covid, global events like the Olympics, the Russia-Ukraine war, AI-led digital growth, and US tax policy shifts disrupted economies and ad spends. Initially headwinds, these later turned advantageous. “Ad spends have not just bounced back but they’ve matured. New age categories like entertainment, quick commerce, BFSI, smartphones & FMEG are no longer spending for visibility alone, they’re spending for precision.”

Shift in campaign formats

Experts note that shifts in campaign formats are shaping festive ad spends, with Connected TV (CTV) emerging as a standout medium amid the rapid rise of digital. While FMCG and e-commerce continue to lead, Solanki points out that the real change lies in budget distribution: digital now commands a 40–45% share in some categories, even as TV and print remain crucial for mass reach.

“Connected TV and YouTube are now mainstream festive media choices, blending branding with shoppable formats. Influencer marketing, especially with regional creators, is commanding larger budgets,” said Dingra. However, he also pointed out that retail media on Amazon, Flipkart, and quick-commerce apps is absorbing significant performance spends. Traditional channels like TV and print still play a role for cultural and hyperlocal moments but are seeing slower growth relative to digital.

Also read: Brands turning to AI for festive campaigns

The Hansa report shows that 80% of consumers plan to shop online this festive season, while offline channels remain relevant, and one in four shoppers are hybrid buyers blending both. This behaviour explains why advertisers are flocking to CTV, retail media & quick commerce, which let brands reach digitally savvy consumers seeking convenience, variety, and immersive experiences.

For instance, JBL’s Diwali campaign with VDO.AI and Havas Media India enables viewers to scan a QR code on CTV to move directly from discovery to purchase, illustrating how interactive digital formats are shaping festive engagement.

Nowal also explained how OOH fits in the festive channels. “We’re also seeing hybrid campaigns where a 30-sec TVC is amplified by OOH and extended with snackable digital extensions & influencer-led narratives,” he said, adding that the organised vs unorganised divide is also visible here as organised brands are investing in measurement-driven influencer ecosystems while unorganised players are still experimenting with quick, high-impact bursts.

Dalal summed it up perfectly by explaining that festive ad spends this year are being driven by several key factors. Improved consumer sentiment, fueled by rising disposable incomes and strong urban demand, has boosted optimism around festive purchases. The surge in digital penetration is also shifting budgets toward CTV, OTT, and social platforms alongside traditional TV. Intense competition, particularly among e-commerce and smartphone brands, is pushing up spending to capture attention during flash sales and product launches. 

“At the same time, brands are increasingly focusing on regional and vernacular targeting in Tier-II and Tier-III cities, where festive consumption is growing rapidly. New-age categories such as fintech and gaming are experimenting with influencer-led content, interactive ads, and performance-driven campaigns to maximize festive ROI,” he concluded.