Rs 10,000 crore in 100 days: GST jackpot for ad industry – Brand Wagon News

The advertisement industry is all set to join the Great Indian consumer party as the new goods and services tax regime kicks in September 22, the first day of Navratri. Agencies are estimating a 15-20% surge in festive ad spending compared to last year.

That means a whopping Rs 10,000 crore incremental ad spend, taking the total to Rs 60,000 crore during the 100-day festival period. An industry insider says, “The GST gain could potentially cancel out the losses from real money gaming advertising wipeout.”

Festive season drives almost half of annual spends

The festive spending last year — starting Ganesh Chaturthi to around Christmas time — stood at around Rs 50,000 crore. Nearly half the industry’s annual advertising expenditure comes from these festive months.

One of the biggest ad spenders is expected to be the government and its agencies who are expected to splurge around Rs 1,500-2,000 crore to educate consumers about the product price cuts expected from the GST rationalisation. The exercise will run through the festive months covering print, television, FM radio, digital and retail media.

A three-month blitz covering over 200 newspapers —national and regional — is in the pipeline. FM radio, regional newspapers and retail media (wherein retailers offer advertising services through their owned digital and physical channels to enable brands to push products at the point of purchase) are expected to be the other big beneficiaries.

The high-stakes Bihar elections (November 2025) adds another dimension, with the state government likely to leverage local and language dailies to send out a message to the public.

For marketers, the timing of the rate cuts has created an opportunity to shape communication around affordability. Consumer goods company sources say while they will cut prices immediately, the concern is whether distributors or the general trade will do the same. So the need is to make the end-consumers aware of the new price points and effective advertising is the best way to do it.

Harpreet Singh, partner, Deloitte India, points out that companies are required to pass on the rate reduction, and brands will leverage this as an opportunity to emphasise the cost savings. Says Somdutta Singh, founder and CEO, Assiduus Global, “Most brands we work with are planning to highlight GST savings to drive home the point that lower prices are due to tax relief, not just discounts.” Tarun Arora, CEO & wholetime director, Zydus Wellness, agrees: “When we are able to pass on the prices to the consumers, it will be useful to communicate the same.”

Digital spends to climb 50%

Digital will lead the charge for D2C and e-commerce brands with an expected 50% increase in their spends. Print, analysts say, will remain relevant in semi-urban markets, where credibility around pricing is vital. Outdoor and TV will play supporting roles in festive hotspots and broader brand storytelling, says Chandan Sharma, general manager, digital media, the Adani Group.

For some marketers, however, the story is less about scale and more about relevance. Priye Choudhary, marketing head, BirlaNu, says while its budget might rise by around 10, sharper deployment will be the key. “The real story is about how GST reforms unlock value for households during the most emotional consumption period of the year. Rather than transactional ads, it’s about reinforcing trust and reminding consumers that brands are passing benefits honestly,” he notes.

Smaller players are also aligning to the new consumer sentiment. Kapil Bhatia, founder & CEO at sustainable fashion brand UNIREC, says while the GST cut on filaments will not immediately impact pricing, it will reduce fabric costs in the long run.

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