From Budget to Premium: How India's $48.2 billion Smartphone market is rewriting adex playbook
For smartphone brands, FY26 is emerging as a year where premium growth and regional relevance dominate strategic conversations, while brands recalibrate ad spends to balance visibility with ROI.
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India’s smartphone industry is at a critical juncture. A confluence of inflationary pressures, rapid 5G adoption, shifting consumer aspirations and heightened competition is reshaping how brands position themselves and how they allocate their advertising rupees.
According to experts, FY26 is emerging as a year where premium growth and regional relevance dominate strategic conversations, while brands recalibrate ad spends to balance visibility with ROI.
In 2025, the revenue in India’s smartphone market is estimated at $48.22 billion, with projections indicating a CAGR of 6.89% between 2025 and 2030, as per a report by Statista. For India, the per capita revenue is expected to stand at $32.94 in 2025, while the market volume is forecasted to reach 256.46 million units by 2030.
Shipments in budget and mid-tiers have slowed, forcing brands like Xiaomi to cut back on marketing outlays and even delay launches. In contrast, premium demand is growing fast, driven by affordable financing, aspirational upgrades, and the mainstreaming of 5G.
"Some brands, notably Xiaomi, have already reduced marketing investment in India in response to falling volumes and inventory cliff. In Q2 2025, Xiaomi’s shipments dropped 23.5% YoY, especially in premium tiers and executives report cuts in marketing spend and delayed launches. Meanwhile, Samsung is emphasising local value addition and sees India as a strategic market," Professor Amrita Bansal Assistant Professor of Marketing IMI Delhi said.
Realme, once known for its aggressive pricing, is pivoting toward premium innovation while still anchoring mass appeal. Its GT Series targets premium aspirants, while the Number Series continues to play in the mid-range with a focus on cameras and offline retail. The brand’s P Series is positioned to capture online-centric buyers who want flagship-level performance.
Realme spokesperson explained, “5G adoption and falling data costs are driving upgrades, especially in metros, while smaller towns require campaigns that balance aspiration with value.”
TECNO echoes this premium tilt, albeit from a smaller base. CEO, Arijeet Talapatra, highlights the company’s goal of 200% growth in the Rs 15,000–20,000 segment through its Phantom series. “Consumers in mid-premium are showing stronger brand loyalty,” he noted. “They are no longer just looking at price; they care about after-sales service, software experience, AI features, and standout design.”
Shift in advertising strategy
Across the board, brands are rethinking how they spend on marketing. N. Chandramouli, CEO of TRA Research, points out, “Brands are reassessing media efficiency and moving away from blanket sponsorships toward more targeted, ROI-driven formats. Premium segments are increasing investment on digital and influencer-led content. Mass-market brands are focusing on trade promotions and regional digital activations.”
For Realme, content remains the centrepiece of marketing. About half its marketing budget goes into content creation and promotion—whether video, graphic, or influencer collaborations, ensuring visibility across platforms beyond traditional TVCs and YouTube.
TECNO is following a similar path, shifting incremental spends into regional digital campaigns, vernacular storytelling, and creator partnerships. “Influencer marketing is no longer optional; it’s central,” Talapatra said, adding that TECNO is increasingly working with local creators in Tier-2 and Tier-3 towns.
Professor Bansal frames this as part of a larger industry correction. "For premium launches, OEMs still appear willing to invest aggressively in “above‑the‑line” channels (TV, OOH, brand sponsorship) for visibility. Xiaomi stated that for its premium device launches it spends almost 50% of the allotted marketing budget on TV and outdoors. However, for mid and budget segments, emphasis is shifting toward more performance marketing and digital/regionally targeted campaigns, to maximise ROI amid price sensitivity and demand pressures," she added.
Digital dominance
Digital is now the undisputed centre of gravity for smartphone marketing in India. Nationally, digital commands 44–46% of adex, with TV at approximately 27%, print at 18% and OOH at 3%. "For mobile brands, digital’s dominance is even more pronounced, driven by the need for agility, targeting, and performance metrics. Over the next five years, we expect to see a new flavour in the adex mix—potentially with immersive tech, AI-personalised outreach, and even voice/AI-based commerce altering how media budgets are deployed," Chandramouli said.
"Close to 65% of our marketing outlay now goes into digital platforms, with 40% dedicated to collaborations with Google, Amazon and Meta. Around 25% is directed to influencer partnerships and top profile collaborations. This shift is deliberate, it allows us to reach consumers with sharper, more targeted storytelling, particularly in Tier-2 and Tier-3 markets where aspirations are high but choices are value-driven,” Puravansh Maitreya, Head of Marketing, Lava International Limited said.
TECNO expects digital spends to exceed 50–60% during premium and mid-range launches, while Realme sees social and video as key battlegrounds.
This aligns with broader market trends. India’s digital ad market is projected to grow 15% annually through 2029, led by influencer marketing with Rs 3,600 crore in 2024, growing 25% annually. By contrast, TV and print are becoming more strategic, used during festive peaks or flagship launches to secure mass visibility.
What’s new is not just the tilt toward digital, but also the hyper-localisation of campaigns. Around 40–45% of briefs now demand vernacular content and regional creator partnerships. For TECNO, this means running sub-campaigns across multiple states in local languages, leveraging creators from gaming and lifestyle niches to demonstrate real-life use cases.
At the same time, retail branding is gaining importance as brands compete for conversion in offline markets. For instance, Realme has opened 180 brand stores in 2024 and plans to cross 100 more by year-end, while expanding its service centres to over 570.
“Offline retail remains critical, nearly 35% of our budget continues to power shopfront visibility, demo zones and local activations. For us, it’s not about chasing celebrity appeal for every launch; sometimes logic and product functionality speak louder. The core philosophy remains simple: market on merit, not on noise," Maitreya noted.
TECNO is doubling down on demo zones, shop-in-shops and tactile brand experiences. “Holding the device, seeing its curved design, assessing display quality, these physical touchpoints make a difference,” Talapatra claimed. However, offline continues to dominate in tier-2/3/4 cities.
