India’s festive digital AdEx to surge 25% in 2025; influencer & CTV spends to corner up to 35% of budgets

India’s 2025 festive advertising season is shaping up to be the most digital-first yet, with brands allocating unprecedented budgets toward influencer marketing and Connected TV (CTV). Industry leaders estimate that digital AdEx will rise 20–25% year-on-year, nearly double the pace of traditional media, cementing digital’s dominance as the centerpiece of festive campaigns.

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“This festive season promises to be a high-energy phase for the ad industry, with digital playing a central role in driving both brand visibility and consumer engagement,” said Bhavesh Talreja, Founder & CEO of Globale Media. He forecasts 15–18% growth in digital ad spends, driven not only by festive celebrations but also by major sporting events overlapping with the season.

Video, social, and commerce lead the charge

According to Shweta Sharma, CEO of Hakuhodo Data Labs India & CBO at AdGlobal360 (AGL), video and OTT/CTV already account for ~30% of digital AdEx and will edge higher this festive season. Platforms like Disney+ Hotstar, JioCinema, and YouTube have become the new festive “living rooms.”

Social and influencer marketing spends are projected to surge 35–40% YoY, powered by Instagram Reels, YouTube Shorts, and Moj.

Meanwhile, e-commerce and quick commerce media will grow 25–30% YoY, as festive journeys increasingly begin on Amazon, Flipkart, Blinkit, and Zepto.

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From a global perspective, India’s 20–25% growth rate in festive digital AdEx is nearly 2x faster than the US (10–12%) and Western Europe (8–10%), reflecting India’s unique cultural-commercial blend.

Influencer marketing grabs 12–20% of spends

Influencer marketing has cemented itself as a mainstream channel. Sharma expects it to command 12–14% of digital AdEx, while Talreja highlights that the industry is already valued at ₹3,500 crore and growing at 25% annually, with 72% of brands allocating budgets to creators. Verticals like e-commerce (23% of annual budgets) and FMCG (19%) are leading this shift.

Influencer fees are expected to spike by 15–30%, driven by festive demand and limited availability. “Influencer marketing costs in India are certainly set to rise in 2025,” Talreja added. “Categories such as e-commerce and FMCG are driving this surge, as brands lean into influencer-led content for product discovery, deeper engagement, and regional connect.”

Prashant Puri, Co-founder & CEO of AdLift, agreed, “Influencers are expected to see increased fees due to higher demand and brand investments. The growing competition among brands is leading to higher payouts for creators.”

CTV doubles its share in brand budgets

Connected TV is no longer experimental- it’s scaling rapidly. Sharma estimates CTV will account for 6–8% of digital spends, up from last year’s 4–5%, while Siva Balakrishnan, CEO of Vserve, projects 10–15% share, with auto, BFSI, electronics, and travel brands allocating up to 20–25% of their video budgets.

Talreja pointed to CTV’s explosive rise: ad spends have grown from ₹450 crore in 2022 to ₹1,500 crore today, and are projected to reach ₹3,500 crore by 2027, representing 42% of total television ad budgets. India now has 50 million monthly active CTV sets, growing at 30% YoY.

Read more: Consumer brands hike festive ad spends up to 20% YoY as India’s adex heads for upwards ₹55,000 crore in FY26

Key categories are leading the charge include automotive, fintech, BFSI, FMCG, e-commerce, and media & entertainment.

“CTV is already cementing itself as the premium showcase window of festive advertising,” said Russhabh R Thakkar, Founder & CEO of Frodoh. “Smart brands aren’t choosing between influencers and CTV; they’re stitching them together to own both discovery and celebration moments.”

Industry leaders agree that 2024 was a recovery year, but 2025 is about scale. “Digital isn’t the side channel anymore, it’s the first screen,” Thakkar said. “Festive discovery, shopping, and entertainment are all digital-first.”

Shradha Agarwal, Co-founder & Global CEO of Grapes Worldwide, highlighted the role of Tier-2 and Tier-3 cities, where e-commerce penetration and smart TV adoption are surging. “CTV opens the gateway for interactive and immersive ad experiences that work in favour of encouraging festive sales,” she said.

With festive demand expected to peak in beauty, electronics, auto, BFSI, and premium FMCG, brands are aligning budgets with where consumers spend their time- on digital-first, immersive, and measurable platforms.