Thousands of years ago, Rishi Durvasa, angered by an unintended insult from the king of Gods, Indra, stripped the deities of all their wealth and power. The weakened Gods were attacked by the Asuras (or devils) who wanted to dominate the world. To protect the world from the wrath of devil-lead ordinance, God Vishnu suggested that they churn the ocean to regain their lost power and other treasures, including amruta or the nectar of immortality. The churning of the ocean, or Samudra Manthan, lasted a long time and gave birth to 14 gems that symbolise fulfilment and prosperity. The same period also became the origin story of several Hindu festivals including Maha Shivratri and Diwali. The roots of Hindu festivals, therefore, became deeply intertwined with the emergence of new, abundance of wealth, and streams of prosperity. This resulted in folklore and mythological tales encouraging the purchase of new products during this time period including tools, jewels, real estate, and home decor, etc.
Post globalisation, these ritualistic practices became highly commercialised. Today, the festive period is the biggest sales window for any brand in India. Dotted with several Hindu festivals, primarily, stretching from September to the end of the year, this is the best time for brands to make the most creative sales pitch and get assured ROI on their marketing investments. That’s why, the season sees brands shelling out significant sums partnering with high-decibel properties, and announcing big discounts to attract the customers. The trend continues this year as well.
Growing Ad Spends
The industry is quite excited about this year’s festive season as the ad spends are already pretty beefed up in the pre-run. The enthralling first half – which included a cricket world cup and general elections, set up a pretty robust momentum for the ad spends this year. The industry is expecting this momentum to continue in the second half of the year as well, with festive marketing adding more bling to the advertisers’ plans.
As Manish Sharma, Managing Partner and Head, Arena India – Part of Havas Media Network India explains, “Despite the distraction of events like the ICC T20 World Cup and national elections, which typically attract substantial advertiser attention and spending, the latter half of the year remains critical for advertisers. Approximately 30% of advertisers focus their promotional activities exclusively during this time. Key factors driving increased spending include strategic initiatives such as new product launches, market expansions, enhanced marketing campaigns, and competitive pressures or the desire to capture market share during peak periods like the festive season.”
Riding on these factors, he projects an 18-20% increase in ad spends, reaching approximately `32,000 – `35,000 crore during this festive season.
Namrata Soni, Director – Media Planning & Buying, Dentsu Creative India, adds, “Legacy shows and sporting events like the ongoing KBC, US Open and the recently concluded olympics, are some of the key events held right before the festive season kicks off in India, providing advertisers a high impact segue to the main festive campaigns. Compared to last year, we’re expecting to see a 15-20% surge in AdEx this year during the festive season.”
Shoppers Getting Cautious
However, there is an air of ‘cautious optimism’ in the market these days. The middle-class, which constitutes nearly 31% of the population, is reeling with the pressures of increased taxes post the budget. It has impacted the dispensable income available with several demographics, which might eventually impact sales for several big-ticket categories that gain prominence in the festive season.
Somdutta Singh, First Generation Serial Entrepreneur, Founder & CEO Assiduus, Investor & Ex-Member Niti Aayog elaborates, “The consumer market is currently exhibiting a mixed sentiment. While there is a noticeable intent among consumers to spend, the availability of dispensable income varies across demographics. High-ticket purchases, such as jewellery or home renovations, are traditionally popular during Dussehra or Diwali, and might see selective growth. Consumers with stable financial conditions are likely to invest in these areas, whereas others may prioritise essential and moderately priced items. Overall, the market’s performance will hinge on economic stability and consumer confidence in the coming months.”
However, retail and ecommerce categories can benefit from this ambiguity over high-ticket purchases. The intent to spend remains high in consumers during the festive season, and fashion & retail continue to dominate their senses.
Ketan Pishe, Partner at PN Rao Suits, a clothing brand, says, “This season has so far been quiet. We anticipate the ‘dry spell’ to continue until Dussehra. However, the sentiments seem to be upbeat for times ahead. During the festive season, the entire thought process changes to attract customers. This year, when the customers walk in through our doors, there will be lesser time to grab customer’s attention. Therefore, our creative approach is to sensitise the public about the range of garments that we offer.”
Digital Continues to Grow 
Considering the market sentiment, ecommerce is going to continue dominating the shoppers’ minds. This will eventually lead to increased ad spends on digital platforms.
Abhik Banerjee, Chief Operating Officer, Madison Media Plus & Infinity shares, “The budget’s focus on fiscal consolidation and reduced subsidies might lead to a cautious approach to spending. Therefore, the consumers may shift to affordable options, benefiting budget-friendly brands and e-commerce platforms. This shift is expected to drive increased spending in digital media, with social media platforms like Meta and YouTube, as well as OTT services, seeing a surge. Connected TV (CTV) is also anticipated to experience strong growth.”
Yasin Hamidani, Co-founder & Director, Media Care Brand Solutions further notes, “Digital ad spends are expected to grow by 30-35% during the festive season compared to last year. The volume of digital ad impressions is anticipated to rise by approximately 20-25%.”
Confirming the sentiment, Devangi Nishar Parekh, Managing Director, Aza Fashions and Founder, Azafashions.com quips, “In recent years, we have observed a rising number of celebrations and events leading up to Diwali across India as well as amongst the NRI population abroad. This year, demand could be expected to rise by 30% compared to last year. We have an exciting lineup of exclusive new collection launches, big designer promos, and fashion week previews planned for the festive season across Aza stores, the online platform and our Aza app. Marketing budgets might see a 30-40% increase during these months to capitalise on the higher demand; these spends focus primarily on digital advertising, influencer partnerships, and trunk shows across major geographies.”
Ekta Relan, Chief Strategy Officer, L&K Saatchi & Saatchi further mentions, "Embracing and experimenting with AI is and will continue to be a rising trend. We will continue to see more brand and creative solutions use machine learning to create engagement and excitement for the brand. However, it’s important to create impactful, tech-powered brand campaigns that resonate with consumers long-term. I am more curious to see some sustainable, meaningful, surprising creative solutions using AI, that talk to its real consumption audience, that drive long term affinity metrics for the brand."
Big Bucks Coming to Entertainment
Along with a robust momentum in digital advertising, this festive season will be bringing in cheers to the entertainment sector as well, especially on television. The last festive season coincided with the ICC World Cup and assembly elections in several states, which took most of the ad spends in the direction of sports and news channels. However, this year doesn’t have any marquee cricketing or high-decibel political events in the fold, creating a fertile ground for the entertainment genre.
Hema Malik, Chief Investment Officer, IPG Mediabrands India shares, “Last Diwali, the World Cup managed to direct a lot of the additional pool of money towards television. There are no such events aligned for this year. This may pull down the AdEx. But the entertainment genre will gain good momentum in comparison to the last few years. I don’t foresee a major growth in AdEx.”
She is however, excited about the growth print segment is projecting this year, “Print took the longest time to recover post-covid. However, this festive season, I am expecting it will continue its growth momentum. Primarily because real estate clients, who are the prime fodder of the medium, are booming.”
Some of the big properties on television include Kaun Banega Crorepati, Big Boss, Indian Idol, Aapka Apna Zakir, Sa Re Ga Ma Pa etc. Further, high-impact regional shows like Bigg Boss and several dance reality shows will attract the advertisers’ interest. Apart from that, movie channels can also monetise this festive season in a big manner with multiple TV releases lined up during the festive season. The India-Australia test series will be another big property.
Overall, the sentiment is quite upbeat for the upcoming season with several categories looking at extended ad spends to catch the hold of interested shoppers. Brands will be shelling out big on entertainment and digital properties, with AdEx getting fuelled by increased activities in the automotive, apparel, jewellery, and FMCG sectors.
