Diwali 2025: What Brands Need to Know About Retail Media in India
Every autumn, India lights up with diyas and firecrackers, and also with a consumer surge that defines the commercial calendar. Diwali, the festival of lights, is as much a cultural milestone as it is a peak shopping period. In 2025, its significance for brands and retailers is amplified by shifting consumer behaviors, retail media acceleration, and a tightening focus on measurable ROI.
Why is Diwali more than just a shopping event for Indian consumers?
Diwali is more than a shopping event; it is a cultural moment of generosity and renewal. Much like other global holiday peaks (like 11.11 Singles’ Day or Christmas), it is underpinned by emotional drivers: gifting, family gatherings, and the aspiration to upgrade lifestyle. In fact, research shows 82% of Diwali shoppers plan purchases well in advance, making it less of a one-day spike and more of a multi-week funnel that begins as early as August.
For marketers, this means that “festival marketing” is not a campaign window, but a journey from wishlist creation to last-minute urgency.
Which retail media platforms dominate Diwali 2025 in India, and how are they different?
Digital advertising in India is undergoing a structural shift. Ipsos and the Economic Times estimate that digital media spends grew 29% to ₹40,800 crore (≈US$4.9 billion) in FY 2024–25, allowing digital advertising to overtake television for the first time [1].
Digital now accounts for 41% of total advertising spend versus 33% for television, while social media and online video dominate digital formats and paid search is the fastest‑growing channel [2]. FMCG and e‑commerce businesses are the largest contributors to digital ad growth, together accounting for 67% of ad spend [3].
The e‑retail market’s fundamentals are equally strong. How India Shops Online 2025, a report by Flipkart and Bain & Company, calculates that India’s e‑retail market reached roughly US$60 billion in 2024, with over 270 million online shoppers, making it the world’s second‑largest online‑shopping market [4].
E‑retail adoption is spreading beyond the top metros; nearly 60% of new shoppers since 2020 come from Tier‑3 or smaller cities [5] and 60% of new sellers since 2021 also originate from these cities [6].
Another major disruption is quick commerce. Bain reports that quick commerce already accounts for over two‑thirds of e‑grocery orders and around 10% of total e‑retail GMV [7].
India’s retail media ecosystem has matured into a multi-platform, mobile-first playground where Diwali strategies must be finely tuned:
- Amazon India (Great Indian Festival)
Leverages mega-sale events, AI-powered personalization, and logistics strength to reach urban, nationwide audiences. Data-driven targeting ensures brands can meet demand surges with precision. - Flipkart (Big Billion Days)
Renowned for social commerce hooks: influencer sessions, gamified discounts, and early-access teasers. Particularly strong in Tier 2 and Tier 3 cities, tapping into aspirational shoppers. - Myntra
Owns the fashion conversation with countdown campaigns, regional targeting, and exclusive festival collections. - Reliance JioMart
Growing as a price-value alternative, leveraging its integration with offline Reliance Retail to enable true omnichannel experiences. - Quick Commerce (Blinkit, Zepto, Swiggy Instamart)
Have redefined “last-minute gifting,” from same-day mithai hampers to festive essentials in under 20 minutes. - Meta (Facebook, Instagram, WhatsApp) and YouTube
Fuel vernacular storytelling, influencer partnerships, and video-driven shoppertainment with regional influencers acting as trust multipliers.
How do Indian shoppers behave during Diwali, and what local nuances should marketers know?
The combination of cultural tradition and digital adoption shapes how Indians shop during Diwali. Indian festive shoppers are digitally omnichannel, price-conscious yet experience-driven:
- Mobile-first dominance: 80%+ of festive browsing begins on smartphones.
- Trust and ease matter: Indian shoppers seek transparent checkout, multiple payment options (UPI, COD, BNPL), and clear return policies.
- Regional depth: Campaigns in vernacular languages outperform generic pan-India messaging, underscoring the need for localized storytelling.
- Shoppertainment: Interactive catalogs, influencer unboxings, and live shopping formats are becoming must-haves.
What are the biggest challenges brands face during Diwali sales in India?
Despite the opportunity, marketers need to be aware of a few headwinds. Ipsos notes that the rapid rise of digital has brought ad‑fatigue, ROI‑measurement difficulties and consumer privacy concerns [8]. Supply‑chain bottlenecks can hurt brand reputation; quick‑commerce players gain share when traditional e‑tailers underdeliver. Media costs typically spike during Q4, requiring careful pacing and budget allocation.
The generative-AI trust gap, highlighted by Kantar (43% of consumers distrust AI-generated ads [9]), means marketers should prioritize human-authored creative and disclose AI usage. Sustainability expectations are rising; 93% of consumers want greener lifestyles [10], which implies that brands ignoring eco‑friendly packaging risk alienating shoppers.
- Inventory pressure – Festive surges can overwhelm supply chains; quick commerce platforms will win share if brands under-deliver.
- Escalating media costs – Q4 CPMs and CPIs spike sharply, demanding early phasing and smarter budget allocation.
- Measurement and transparency – Retail media must evolve beyond impressions to closed-loop ROI, especially as brands scrutinize every rupee spent.
- AI trust gap – While marketers are bullish on generative AI, 43% of consumers distrust AI-generated ads. Human-authored creative and clear brand provenance are key.
Where are the biggest marketing opportunities for Diwali 2025 campaigns?
- AI-powered personalization: Dynamic bundles, timed drops, and predictive recommendations that anticipate wishlists.
- Creator collaborations: Micro and regional influencers drive 4.8x stronger distinction for brands.
- Omnichannel integration: Synchronize messaging across e-commerce, social, OOH, and in-store digital screens.
- Sustainability signals: With 93% of consumers wanting more sustainable lifestyles, eco-conscious packaging and authentic ESG initiatives can be powerful differentiators.
- User-generated content: Hashtag challenges, festive reels, and gifting stories add an organic, community-driven layer to paid campaigns.
What tactical strategies should marketers use to win Diwali 2025?
- Start early and build a funnel: Because digital campaigns have multi‑week cycles, performance marketers should lock creative and inventory by August and launch teaser campaigns by September. Warm audiences through wish‑list content, influencer unboxings and value‑added content before the Great Indian Festival/Big Billion Days.
- Personalise with care: Use retail media’s first‑party data to create dynamic bundles and timed drops. However, respect privacy and explain the role of AI, given that 43 % of consumers distrust AI‑generated ads [11].
- Leverage creators and vernacular storytelling: Kantar’s trends report shows that creator‑led content can differentiate brands; micro‑influencers drive brand distinction 4.8× higher than category benchmarks. Invest in local languages and culturally resonant creative to engage Tier‑2/3 audiences.
- Double down on video and shoppertainment: Short‑form video and live shopping are dominating digital engagement [12]. Host live product demos on YouTube and Instagram, and use gamified elements on Flipkart/Meta to prolong dwell time.
- Omnichannel integration: Synchronise messages across e‑commerce platforms, social, in‑app notifications, out‑of‑home displays and in‑store digital screens. Use cross‑platform frequency capping to avoid over‑exposure and unify measurement.
- Highlight sustainability: With 93 % of consumers seeking sustainable lifestyles [13], integrate eco‑friendly packaging, carbon‑neutral shipping options and transparent ESG initiatives into Diwali campaigns.
How can brands use Diwali to build long-term equity, not just short-term sales?
Diwali is a revenue peak and a brand-defining moment. The future of retail media in India lies in balancing performance and presence: driving measurable conversions while building enduring brand meaning in a festival where emotion and commerce converge.
In 2025, the brands that shine brightest this Diwali will be those that treat retail media not just as ad inventory but as a cultural stage, blending data, storytelling, and trust to light up consumer hearts as much as their carts.
FAQ: Diwali 2025 and Retail Media in India
1. When do Indian shoppers start planning for Diwali purchases?
Over 82% of Diwali shoppers plan their festive purchases in advance, often beginning as early as August with wishlisting and research. This makes Diwali less of a one-day spike and more of a multi-week purchase funnel.
2. Which retail media platforms are most influential during Diwali 2025?
Amazon India (Great Indian Festival) and Flipkart (Big Billion Days) dominate, supported by Myntra for fashion, Reliance JioMart for omnichannel value, and quick commerce players like Blinkit, Zepto, and Swiggy Instamart for last-minute gifting. Meta (Facebook, Instagram, WhatsApp) and YouTube also play central roles in vernacular storytelling and influencer-led shoppertainment.
3. What consumer behaviors shape Diwali shopping in India?
Indian shoppers are digitally omnichannel and highly mobile-first, with over 80% of festive browsing starting on smartphones. They value ease of payment (UPI, BNPL, COD), regional language content, and interactive formats like live shopping and influencer unboxings.
4. What are the biggest challenges for brands during the Diwali sales period?
Brands face inventory pressure during peak week, escalating Q4 media costs, and ROI-measurement difficulties. A key emerging challenge is the AI trust gap: while marketers are bullish on generative AI, 43% of consumers distrust AI-generated ads.
5. How important is sustainability for Diwali shoppers in 2025?
Very important. 93% of consumers globally say they want to live more sustainable lifestyles. In the Indian context, festive packaging and logistics practices that demonstrate eco-consciousness can strongly influence purchase decisions.
6. What marketing strategies drive the strongest impact during Diwali?
Winning strategies include:
- Starting early (campaigns by September).
- AI-powered personalization (dynamic bundles, timed drops).
- Regional influencer collaborations (micro-creators drive 4.8× stronger brand distinction).
- Omnichannel consistency across e-commerce, social, OOH, and in-store media.
7. How large is India’s e-retail market heading into Diwali 2025?
According to Flipkart and Bain, India’s e-retail market reached ~US$60 billion in 2024 with 270 million online shoppers, making it the world’s second-largest online shopping market. Notably, 60% of new shoppers since 2020 come from Tier-3 or smaller cities, expanding festive demand beyond metros.
