Gloom lifts, India Inc ready: Consumer cos step up festive ad spends after slow H1; expect 15–20% jump

Corporations throughout shopper sectors are readying to loosen their purse strings to step up promoting through the upcoming festive season, with advert spends anticipated to extend 15-20% year-on-year in line with trade executives, after having curtailed spending within the first half of 2025 on account of geopolitical points, together with the India-Pakistan battle, and a rain-soaked summer season.

Media patrons mentioned corporations from the private care, meals, vehicles, retail, electronics, hospitality and actual property sectors have taken the lead in reserving promoting slots.

Beverage maker Coca-Cola’s world chief govt James Quincey mentioned on an investor name earlier this week, “In India, after a powerful begin to the 12 months, quantity declined as our enterprise was impacted by early monsoons and geopolitical battle within the necessary summer season season. In response, Coca-Cola is growing extra granular, execution methods… tailor-made to festivals and regional wants,” he mentioned.

Discretionary sectors, which noticed subdued gross sales progress of 4-5% prior to now 12 months owing to a mixture of things, are pinning hopes on the following 5 months for momentum to select up, hoping that the earnings tax reduction on salaries of as much as ₹12 lakh yearly, beneficial monsoon, easing of some commodity inflation and stability in geopolitical sentiment may carry again demand.

“Whereas the auto trade has confronted subdued demand, we anticipate good revival within the coming months backed by beneficial monsoon and upcoming festive season beginning with Onam from August. We are going to improve our advertising and marketing campaigns and introduce product updates to catch this uptick in shopping for season,” mentioned Kunal Behl, vp, advertising and marketing and gross sales, Honda Vehicles India.

Banking on demand revival

The festive season, comprising a collection of festivals in several elements of the nation, from Raksha Bandhan and Janmashtami in August to Dussehra and Diwali in October and Christmas in December, is historically related to an uptick in spending and supplies companies a chance to push gross sales on these auspicious events.

“Corporations that had held again advert budgets up to now this 12 months, are expectedly ploughing them again into the following two quarters, hoping for demand restoration within the second half of the 12 months,” mentioned Shashi Sinha, chairman at media planning and shopping for agency IPG Mediabrands, which represents corporations comparable to ITC, Mahindra Group and PhonePe digital pockets app.

Automotive and two-wheeler gross sales in India, the world’s third largest car market, slipped within the June quarter, snapping a four-year progress streak. “However a busy pipeline of latest mannequin launches within the run-up to the festive season and a weak demand is prompting auto corporations to jack up promoting, advertising and marketing and gross sales promotion spend,” an govt at a big passenger car maker mentioned on situation of anonymity.

“Automakers are leveraging digital-first methods to drive festive demand and clear elevated stock ranges.”

Launching forward

Summer time-centric corporations comparable to these making chilly drinks, air-conditioners, ice-cream and fridges, particularly, have been caught off guard within the essential April-June quarter, which contributes greater than half to their annual gross sales, on account of constant unseasonal rains.

Many such corporations, which had stalled launches through the season and therefore advert and advertising and marketing spends, are actually reviving their plans, supported by an promoting push.

“With the festive season bringing a wave of optimism and elevated shopper spending, we are going to now introduce Jumpin’s ready-to-drink portfolio, to capitalise on the beneficial atmosphere,” mentioned Piruz Khambatta, group chairman of focus combine and fruit drinks maker Rasna.

The corporate had acquired Jumpin from Hershey’s India this 12 months in peak summer season in Could for a valuation of an estimated Rs 350 crore. “Given how a lot hinges on the festive quarters this 12 months, we’re seeing promoting specializing in trade schemes and financing provides for extra incentives to induce customers to spend, as an alternative of routine seasonal festive campaigns that often give attention to launches and new collections,” mentioned an govt at a inventive company, which is at the moment creating such promoting for 2 massive manufacturers.

“That is taking place throughout sectors, whether or not it’s jewelry, telephones, electronics or vehicles.” A report by Sam Balsara-owned Madison Promoting, together with Pitch, forecasted that India’s promoting expenditure would improve 11% year-on-year to Rs 1,19,857 crore in 2025. The report referred to “optimistic market sentiment following the finances as a key driver for restoration”.