Bye-bye gangbuster spending. Hello caution

WHILE AD SPENDING IS SET TO GROW 10-15% THIS FESTIVE SEASON OVER THE LAST, ADVERTISERS ARE BANKING ON TECH TO REDUCE COSTS AND IMPROVE PERFORMANCE

- CHRISTINA MONIZ

IN 2025, RETAILERS can seize on their 2024 success by using AI to drive down costs while improving the shopping experience.

The spending forecast for this year's festive season looks promising, with Raksha Bandhan already setting the tone for higher advertising spends. Industry experts expect a healthy 10-15% growth in ad spend this festive season over last year to reach anywhere between ₹55,000 to ₹60,000 crore. Nearly half of the industry's annual advertising expenditure is expected to come from the festive months.

According to Shekhar Banerjee, chief client officer at Wavemaker (WPP Media), ad spending may get a bigger boost this year if the proposed GST reforms come into effect. "We anticipate more disposable income in the hands of consumers. That would lead to a surge in festive purchases, particularly of household products, consumer durables, automobiles, and lifestyle categories. This uplift in consumer demand will translate into higher marketing and media investments," says Banerjee.