Festive spending to rise, with 83% buyers planning higher outlays

India’s festive season has always been a barometer for consumer confidence. In 2025, it is not just offline marketplaces and e-commerce platforms that are in focus, but Artificial Intelligence (AI), which is quietly reshaping how shoppers browse, decide and spend.

A new study, The Marketer’s Guide to India’s Festive Season 2025 by InMobi Advertising and Glance, captures the shifts in behaviour and expectations during the high-stakes months that determine much of the year’s retail performance. Drawing insights from 1,033 respondents across Android and iOS devices, the report maps out how technology and consumer intent intersect in an increasingly digital-first market.

AI steps into the shopping aisle

According to the study, nearly eight in ten Indian consumers (79%) now actively seek AI-powered shopping recommendations. These range from contextual product suggestions to voice search and virtual try-ons.

A notable 87% of respondents prefer virtual try-ons, citing greater confidence in purchase decisions. 88% say they welcome AI-driven festive content directly on their lock screens.

“This festive season, AI is on the frontline, shaping every shopper interaction,” said Kunal Nagpal, chief business officer, InMobi Advertising and Glance. “When consumers see the same brand story and personalised offers across their lock screen, social feed, and shopping app, it doesn’t just catch their eyes, it cements trust and drives action. Consistency across channels isn’t just good marketing anymore; with AI, it’s the fastest route from awareness to conversion.”

AI’s presence is no longer confined to back-end recommendation engines. With 92% of respondents stating they are more likely to purchase from brands encountered consistently across multiple touchpoints, the pressure is on marketers to ensure coherence across platforms.

What shoppers want in 2025

Despite the digital layer, the motivations behind festive shopping remain rooted in tradition. The report shows that 85% of consumers cite shopping as their top festive activity, followed by 70% prioritising time with friends and family, and 55% enjoying gifting.

When asked about categories, apparel, footwear and accessories top the list at 63%, with health, beauty and wellness close behind at 42%, and home décor and furniture at 40%. E-commerce remains the dominant discovery and purchase channel, with 84% of consumers spending time on online marketplaces, while food delivery (59%) and streaming platforms (49%) also command attention during the season.

The financial outlook appears buoyant. A record 83% of shoppers intend to spend more this year compared to 2024, with average budgets exceeding INR 23,000. For marketers, this is a rare confluence of sentiment and spending power.

Digital takes the lead

One of the sharper findings of the study is the migration to online shopping. Sixty-four percent of consumers say they will complete all their festive purchases online, while 83% plan to conduct extensive research on digital platforms before making final decisions. Importantly, three in four shoppers prefer saving offers within apps to revisit later, underscoring the need for sustained engagement rather than short bursts of campaign activity.

The timing of campaigns remains critical. The ‘golden window’ is still two to four weeks before major festivals, suggesting that marketers will have to front-load their digital strategies while ensuring they sustain visibility closer to the purchase moment.

Performance data from last year’s season shows the growing effectiveness of AI-enabled formats. Full-screen playable ads recorded 1.5 times higher click-through rates, Connected TV banners achieved 1.3 times greater engagement, and Glance lock-screen placements lifted impressions by more than 200% for e-commerce and quick commerce brands.

These results suggest that experimentation with newer ad formats is not just about novelty but measurable business outcomes. With festive budgets under scrutiny, marketers are likely to benchmark success less by awareness and more by conversion and attributable revenue.

The cost of consistency

AI may provide efficiencies, but it also raises challenges. Thin gross margins and heavy marketing spends remain pressure points, particularly for consumer goods and retail categories already dealing with inflationary costs. Delivering personalisation at scale requires infrastructure investment, and while larger platforms may be able to absorb this, smaller brands could struggle.

The report points to a wider industry question: whether the push for AI-led personalisation risks creating a homogenised marketing playbook. With 92% of consumers stating they prefer consistent brand interactions across channels, marketers must find a balance between repetition and differentiation to avoid fatigue.

India’s beauty, retail and lifestyle segments have long relied on festivals to trigger consumption surges. What is changing is the medium of engagement. The report indicates that online research and digital-only purchasing are becoming mainstream, while AI sits at the centre of discovery and decision-making.

For advertisers and agencies, the implication is clear. Planning festive campaigns now requires not just cultural insight but also algorithmic fluency. “Consistency across channels isn’t just good marketing anymore,” as Nagpal put it. The question is whether brands can sustain that consistency while still offering variety and relevance.

The festive season in India remains a high-stakes contest between tradition and technology. While gifting rituals and apparel shopping dominate, the tools shaping these purchases are increasingly algorithm-driven. With average spends crossing INR 23,000 and more than 80% of consumers planning to increase their budgets, the opportunity is significant.

Yet, execution will demand more than blanket promotions. The report suggests that strategic timing, innovative ad formats, and AI-driven consistency are becoming table stakes rather than differentiators. As the market matures, the brands that balance personalisation with authenticity—and scale with restraint—may be the ones to cut through the seasonal noise.