Festive season to see Rs. 5,400 crore (US$ 612.93 million) of extra ad spends

India’s advertising expenditure (AdEx) is set for a major festive season boost, with incremental spends of Rs. 5,400 crore (US$ 612.93 million) projected as consumer demand strengthens following the government’s Goods and Services Tax (GST) rationalisation. Fast-moving consumer goods (FMCG) companies, which account for 54% of AdEx, are expected to lead the surge after months of cautious spending amid macroeconomic pressures. Industry executives highlighted that FMCGs alone could contribute an additional Rs. 3,600 crore (US$ 408.62 million) during the festive period, with consumer durables and automobiles also set to raise their marketing budgets. This increase comes against the backdrop of a Rs. 7,000 crore (US$ 794.55 million) shortfall in AdEx earlier this year following the ban on real money gaming.
According to TAM Media CEO Mr. LV Krishnan, the overall AdEx impact of higher FMCG spending could reach 5.50% on an industry size of Rs. 1,20,000 crore (US$ 13.63 billion), with 60% of spending typically concentrated between August and December. Zenith India CEO Mr. Jai Lala added that GST benefits are expected to unlock both consumer demand and advertiser confidence, leading to at least a 10% incremental benefit over and above regular festive growth. The festive period also aligns with marquee cricket events such as the World Cup, which have historically contributed significantly to AdEx. Industry leaders agreed that with favourable economic and seasonal factors converging, the 2025 festive season could deliver one of the strongest advertising upswings in recent years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.