After a sluggish first half, India Inc is gearing up for a significant surge in advertising expenditure during the festive season of 2025. Consumer-facing companies are expected to increase their ad spends by 15-20% , signaling a strong revival in anticipation of heightened consumer demand. This positive shift comes after a challenging H1 marked by geopolitical uncertainties and an unusually wet summer that dampened consumer sentiment.
Several factors are contributing to this optimistic outlook. Income tax relief measures are expected to boost disposable incomes, while a favorable monsoon is likely to improve rural demand. Easing inflation is also playing a crucial role in enhancing consumer confidence and purchasing power.
Sectors such as personal care, food, automobiles, and retail are predicted to lead the advertising surge. These industries are banking on the festive season to recoup losses incurred during the first half of the year and capitalize on the anticipated increase in consumer spending.
The festive season in India, which spans from Raksha Bandhan in August to Christmas in December, accounts for over 40% of the country's annual retail expenditure. However, the festive window is shorter this year, approximately 45 days, requiring advertisers to plan and execute campaigns with precision.
Digital platforms are expected to lead the growth in advertising spending, with projections indicating a 15-20% increase in digital adex. Social media, video platforms, and retail media are likely to be the primary drivers of this growth. Within digital advertising, social media is predicted to become the largest format, potentially overtaking television in the next five years. The rise of short-form video content, programmatic advertising, and influencer marketing is also contributing to the digital surge.
While digital advertising is set to dominate, traditional media will also see growth. Brands are adopting a balanced, multimedia approach, leveraging television sports and regional print supplements to maximize their reach. This integrated strategy reflects a nuanced understanding of the Indian consumer base, which is diverse in media consumption habits.
Several industry experts have weighed in on the expected advertising growth. Roopali Sharma, President – North & East at Havas Media, anticipates a 10–12% growth over last year's festive AdEx, attributing it to a stronger macroeconomic outlook, increased consumer sentiment, and a synchronized festival calendar. Ratnakar Bharti, VP – Media at MudraMax, estimates a similar growth rate, driven by a broader digital-first user base, major product launches, and festive-centric campaigns timed with major sporting events. Anil Pandit, Managing Partner at Publicis Media India, foresees a stronger outlook than last year, fueled by increased consumer sentiment, heightened brand activity, and a robust push towards digital platforms.
However, some segments, such as startups, MSMEs, and the crypto industry, are expected to remain cautious in their ad spending. This reflects a broader trend of nuanced spending strategies, where companies are carefully balancing optimism with fiscal prudence.
The Indian advertising market is undergoing a dynamic transformation, with digital advertising accounting for an increasing share of total ad spend. According to MAGNA's Global Advertising Forecast, India's total ad expenditure is estimated to grow 7.8% to reach ₹1,37,100 crore in 2025. Digital adex is projected to rise by about 12% to ₹72,800 crore, while traditional media revenue is expected to increase by 3.4% to ₹64,300 crore.
As India's digital landscape evolves, marketers are increasingly exploring alternatives to traditional platforms like Google and Meta, focusing on independent measurement, transparency, and omnichannel optimization. The rise of OTT/CTV platforms, retail media, and personalized advertising experiences is reshaping how brands connect with their audiences.
