Brands may push festival ad spends by up to 20%, but with an eye on RoI

Overall festival advertising expenditure could reach between ₹48,000 crore and ₹51,000 crore in 2025

Festival advertising spends are expected to grow by 8 to 20 per cent year-on-year, fuelled by digital momentum, improving consumer sentiment, and a packed calendar of cricket tournaments. Yet media space buyers are tempering expectations, as brands are expected to scrutinise returns more closely this year, with a shorter festival window prompting a more cautious approach.

 

Overall festival advertising expenditure (AdEx) could reach between ₹48,000 crore and ₹51,000 crore in 2025, according to Havas Media India, a media solutions company. That’s a projected rise of 16 to 20 per cent, much ahead of the average annual AdEx growth of 9 to 11 per cent, and consistent with the earlier growth forecast of 15 per cent or more.

 

“It’s a challenging time for the industry as personalisation is driving growth,” Ramsai Panchapakesan, president, investments and partnerships at Havas Media India told Business Standard. “That said, the expected growth for the festival season in 2025 is comparable to, or slightly stronger than, 2023 -- and broadly in line with 2022 levels in terms of percentage growth.” He noted that, after a subdued first half of 2025, marked by geopolitical tensions and unusually wet summer, consumer brands are looking to ramp up their festival ad spends by 15-20 per cent.

 

Trishul Bhumkar, managing partner at Zenith India, part of Publicis Media, a global media agency, pointed to the Asia Cup and Women’s Cricket World Cup in September as key AdEx boosters. Navin Khemka, president, client solutions at WPP Media South Asia, said that although the tight festival calendar might dampen overall volumes, spends are still expected to match last year’s trajectory. He added that media investment patterns are shifting, but overall spend growth remains healthy.

 

The shorter festival season, down to roughly 45 days, may push advertisers to opt for more tactical campaigns, Panchapakesan said, with media plans prioritising channels that offer high impact and return on investment (RoI). “Float-based campaigns will likely be skewed toward platforms that deliver higher effectiveness and measurable returns.”

 

A senior advertising executive, speaking on condition of anonymity, said brands are less buoyant in terms of ad spends than they were at the start of the year. Last year, television advertising durations dipped by 8 per cent year-on-year during the August–December period, while print saw a 3 per cent drop in ad space during the same period, according to TAM AdEx data.

 

“Given current market conditions, brands will stay cautious and focus on spend versus RoI,” said Manish Solanki, chief operating officer (COO) and co-founder of TheSmallBigIdea, a digital marketing agency. He believes the industry is headed for a “cautious rebound”, with festival ad spends projected to grow by 8 to 10 per cent over last year. That’s more subdued than the 15 to 18 per cent increases seen during the 2022–2023 festival cycle. 

 

The season, starting with Raksha Bandhan in August and stretching to Diwali in October, is expected to draw heavy ad spends from sectors including automotive, e-commerce, quick commerce, FMCG (fast-moving consumer goods), BFSI (banking, financial services and insurance), consumer durables, personal care, real estate, and gaming.

 

Media buying executives say the momentum in ad spends is likely to continue beyond the festival season. Bhumkar noted that digital remains the biggest magnet for incremental budgets, with Connected TV (CTV) and over-the-top (OTT) platforms powering that growth.

 

Havas Media India forecasts digital festival ad spends to grow between 18 per cent and 22 per cent. CTV alone could see a 22-25 per cent rise. Panchapakesan added that post-festival growth may continue, with broadcasters and content platforms lining up non-fiction formats, premieres, and major sporting events.

 

Russhabh R Thakkar, founder and CEO of CTV ad-tech firm Frodoh, said: “CTV ad spends this festival season are expected to grow by around 8 to 11 per cent over last year.” He attributes the growth to better demand planning, improved inventory, and enhanced measurement tools. With the Assembly elections in Bihar expected in October and November, political ad spends could further lift the market.

 

Print media, too, may hold its ground. Panchapakesan said bundled deals and premium slots, such as front-page, back-page and jacket ads, are helping sustain print ad spends. The medium is projected to grow by around 15 per cent over last year’s festival period.

 

Television, however, remains on shakier ground. Arghya Chakravarty, COO of Shemaroo Entertainment, said the company remains cautious about any significant rebound in TV ad revenue. With budgets shifting towards platforms like YouTube, Meta, and e-commerce channels, digital-first brands are leading the charge. While the digital momentum is expected to continue, a broader revival will hinge on consumer sentiment and spending strength.

 

TV advertising revenues declined for a second straight year in 2024, according to Chakravarty, marking the slowest growth in nearly seven years, a sign of how sharply marquee ad spends have pivoted to digital.