Festive advertising set to rise 12–15% as TV, AVoD platforms capitalize on premium content

As broadcasters line up festive specials, movie premieres, and reality shows, AVoD platforms are rolling out originals and regional content. Key sponsors include auto, smartphones, fintech, and e-commerce brands. That said, global headwinds, such as US tariff dynamics, may impact trade flows and investor sentiment, which in turn can affect consumer confidence.

For India specifically, sluggish rural demand, inflationary pressures on essentials, and muted manufacturing growth remain near-term challenges, according to industry experts.

“We are seeing much stronger advertiser interest this festive season compared to last year, driven by two clear factors—a rebound in consumer sentiment and spending, and a growing focus among advertisers on outcomes beyond visibility, such as engagement and measurable business impact,” said Ashish Sehgal, former chief growth officer, Zee Entertainment Enterprises Ltd. (Sehgal quit the firm last week.)

Festive specials, big-ticket events, sports properties, and movie premieres are creating premium inventory. Advertisers are also investing in innovative solutions like integrations, influencer videos, new digital ad formats, connected TV, and sponsorships to outpace rivals and secure top-of-mind recall, Sehgal added.

With the integration of MX Player and Amazon miniTV, the merged Amazon MX Player entity can now reach over 250 million monthly users, said Aruna Daryanani, director at Amazon MX Player. The platform is launching over 30 new shows this festive season starting September, including Rise and Fall, a reality format led by game master Ashneer Grover, and returning series such as Half CA 2, First Copy 2, Who’s Your Gynac 2, and Jamnapar 2.

Multiple new short-form originals across romance, thriller, and comedy are designed for high-frequency consumption during festive downtime, Daryanani added.

Spot rates for flagship shows are expected to rise, particularly in high-demand genres such as reality programming, premium drama launches, and live sports, agreed Hemant Kewalya, executive director – audience measurement, Nielsen.

“On digital and connected TV, premium ad inventory is also commanding greater interest, reflecting advertisers’ growing appetite for targeted and measurable reach. This growth is supported by stronger consumer sentiment, a more synchronised festival calendar, and expanding digital adoption,” Kewalya said.

He added that traditional drivers such as e-commerce, fast-moving consumer goods (FMCG), consumer durables, and automotive continue to dominate festive advertising, but there is growing activity from categories like online gaming and health and wellness.

Spot rates for marquee shows may rise 10-12%, while digital CPMs (Cost Per Mille, where advertisers pay for every 1,000 impressions) could climb 8-10%, according to Prashant Puri, CEO and co-founder, AdLift by Liqvd Asia.

Puri expects ₹3,000-3,500 crore in incremental festive spends versus 2024, with new categories like direct to consumer (D2C), electric vehicles (EVs), gaming, and fintech leading the charge.

Entertainment experts say the festival season is critical for all advertisers—regular or seasonal. Advertising sentiment peaks during this period, with the quantum of spends varying based on cultural, economic, or geopolitical factors. The festive quarter generates maximum revenue for most categories, creating buoyancy equal to or higher than last year.

Navin Kathuria, executive vice-president – planning and buying, Mudramax said specific content line-up is always tied to the festivals being celebrated.

For example, Marathi channels will have a lot of Ganesh Chaturthi related special shows whereas Bangla channels will focus more on Pujo related content. Hindi channels focus on special events related to Janmashtami, Navratri, Diwali and so on. with a lot of glitz and glamour.

Regular impact shows such as Bigg Boss and Kaun Banega Crorepati will also launch in a scheduled manner, Kathuria added.

Challenges remain. FMCG companies, traditionally anchors of festive advertising, are still calibrating spends given muted consumer demand and broader macroeconomic pressures.

However, Arghya Chakravarty, chief operating officer, Shemaroo Entertainment Ltd, noted that digital-first and new-age brands are demonstrating greater agility in capturing the festive opportunity, particularly across e-commerce platforms, YouTube, and Meta.

“The 25-50% US tariffs on Indian exports could create macroeconomic headwinds especially in sectors like textiles, jewellery, and auto parts. There is a small chance local advertising budgets may benefit as they will be looking to sell in the subcontinent instead,” said Yash Chandiramani, founder and chief strategist, Admatazz, a digital marketing agency.

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