Where CMOs are spending their festive budget

The A&M landscape experiences a sense of electricity during the festive season. As people–with more certainty than any other time of the year–line up to make purchases and buy those coveted products that have been lingering in the planning phase for too long, a rapid movement and sparkle is experienced in the annals of the market.

In India, the festive season, stretching from Navratri to Diwali to Christmas and New Year, represents a time when consumer spending hits its peak. Yet, as millions of people prepare to splurge during these culturally significant months, brands face an equally immense challenge: the battle to cut through the noise and capture attention in a marketplace saturated with festive promotions, offers, and advertisements.

As per a report, media agencies are predicting mid-to-high single-digit growth in ad revenue for the latter half of 2024, with a significant boost coming from festive season-related spending. Brands are anticipated to allocate approximately 50% to 55% of the total yearly ad expenditure, which is projected to range between ₹1.1 lakh crore and ₹1.5 lakh crore, during this period.

Every year, brands pull out all the stops, launching glittering campaigns, deep discounts, and exclusive offers in an attempt to stand out. Yet, without a well-crafted marketing budget and strategy, even the most exciting promotions can get lost in the deluge of ads. Crafting the perfect budget isn’t just about how much you spend—it’s about where and how you spend it, ensuring your message doesn’t just reach the audience but resonates with them amid the frenzy.

This is where strategic festive budgeting becomes crucial. Brands need to decide how much to allocate to digital versus traditional media, when to focus on brand awareness versus conversion, and how to maintain flexibility to respond to real-time market shifts. The stakes are high, and the margin for error is slim.

The question that remains then is: How do brands go about crafting a strategic marketing budget for the festive season that cuts through the noise and resonates with consumers?

Crafting a data-driven strategy

Budgeting for the festive season is not a simple exercise in assigning funds across platforms; it requires a keen understanding of market dynamics, consumer behaviour, and past performance. For brands like Samsonite, a leading player in the luggage and travel accessory market, this process begins months in advance, with careful analysis guiding every rupee spent.

"As we prepare for the festive season, our budget is meticulously crafted based on insights from past campaigns, current market trends, and consumer behaviour," says Anushree Tainwala, Marketing Director at Samsonite. "We prioritise mediums that drive engagement, especially digital platforms like social media and e-commerce, which offer real-time interaction with consumers."

Samsonite’s approach is emblematic of how many large brands operate during this period. A significant portion of the budget is allocated to digital platforms because of their measurable ROI and precision in targeting specific audiences. However, Tainwala also highlights the importance of traditional media. "While digital gets a larger share, we still invest in traditional mediums like TV and print to ensure broad visibility and reach."

“At Fixderma, we focus on aligning our budget with strategic priorities—balancing brand visibility and performance, ensuring a significant portion goes toward high-engagement channels like social media and influencer partnerships, which are crucial during this period. Key factors influencing our budget are consumer trends, media costs, and past campaign performance,” shares Preetam Jena, CMO and Head of eCommerce, Fixderma. 

For brands of all sizes, the key takeaway is the importance of data. As Azmat Habibulla, Managing Director and Head of Group Strategic Marketing at DBS Bank India, notes, "We use a data-driven approach, analysing customer behaviour and transaction patterns to allocate our budget effectively." This strategy helps businesses optimise spending and ensures campaigns are crafted to resonate with their target audience.

“To prepare the right budget, we first look at past results and determine the current level of the market. The budget is allocated based on the expected effect of each medium. The key aspect considered is based on the channels that bring the highest return, while simultaneously monitoring the segments that have potential,” shares Arjun Ranga, Managing Director, Cycle Pure Agarbathi. 

For many brands, digital platforms dominate the festive budget. As Tainwala highlights, “Digital gets a larger share because of its ability to deliver targeted, measurable results." Meanwhile, DBS Bank India’s focus is on digital channels that offer high engagement and measurable impact. “We leverage digital channels like email, SMS, WhatsApp, and social media to connect with our customers, ensuring our efforts resonate with their shopping habits," adds Habibulla.

Factors that influence

Several factors shape festive budgeting decisions, and brands must be agile to respond to market dynamics. Understanding consumer behaviour, competitive landscapes, and sales data from past festive seasons is vital. Experts point out several factors that dictate their budgets. 

Prashin Jhobalia, Chief Marketing Officer at House of Hiranandani, points out, “Festive periods in India are critical, especially post shrad when consumer enthusiasm for home buying increases.” The brand allocates higher budgets to media channels that can break through the heightened competition, focusing on outdoor advertising and society activations to ensure local market penetration.

For Mini Sood Banerjee, Assistant Director and Head of Marketing at Amorepacific India, the consumer demand for premium products heavily influences resource allocation. “There is a heightened interest in premium products during festive seasons, which leads to an increase in resource allocation for marketing campaigns, product launches, gift sets, and limited-edition collections which often drive higher sales. We prioritise channel-specific strategies to engage with consumers on social media and e-commerce platforms, so a significant portion of our budget is dedicated to influencer marketing and festive sales,” she reveals. 

Medhavi Nain, Head of Marketing at House of Beauty, underscores the role of data analytics in dynamic resource allocation. "We assess our previous campaign performance, along with trending consumer behaviour, to monitor and dictate our allocations accordingly." By evaluating both sales data and competitor activity, House of Beauty ensures its festive campaigns remain relevant and competitive in the beauty industry.

Different sizes, different approaches 

Whether you are a small business or a large brand, there are universal best practices that can help maximise returns during the festive season. That being said, there are nuts and bolts of marketing that vary across business sizes. 

Ranga recommends that brands, regardless of size, focus on careful planning and strategic allocation. He advises small brands to “target niche markets and frugal channels, such as social media and influencer partnerships, that drive high engagement at low costs,” while larger brands should “utilise their scale by investing in a mix of broad and targeted media.”

Meanwhile, Tainwala stresses the importance of setting clear objectives and leveraging analytics throughout the season. For brands with limited budgets, focusing on high-performing platforms is critical. She explains, “Prioritising mediums with proven performance for your audience is crucial. Monitoring campaign performance in real-time allows for adaptive strategies, ensuring maximum impact.”

On the other hand, Nain highlights the importance of content that resonates deeply with the audience. "All brands should prioritise content that resonates with their audiences, whether through storytelling, educative tutorials, impactful video messaging, or visual representations." These elements foster a deeper connection with consumers and drive long-term loyalty.

“Brands can focus on festive giveaways, cross-brand collaborations and nano influencer collaborations to increase brand visibility at minimum cost. Larger brands should diversify their media mix to include both traditional and digital channels, like Sales promotion, digital marketing, festive packaging, and collaborating with macro and mega influencers,” advises Sood Banerjee. 

Flexibility: The key to maximising ROI

One of the most critical components of festive budgeting is maintaining flexibility. The festive season is unpredictable, with trends, consumer preferences, and competitor actions shifting rapidly. Brands that can adapt in real-time will have the edge in such a competitive environment.

“Agility is key to maximising ROI during the festive season,” says Jhobalia. "We track campaign performance closely and make adjustments as needed. Reallocating budget mid-campaign based on real-time data ensures we put our resources into the highest-performing areas.”

Tainwala also emphasises the need for flexibility, particularly when balancing between digital and traditional media: “We allocate a portion of our budget for real-time adjustments, allowing us to quickly respond to shifts in consumer behaviour or market trends. This flexibility is crucial during the fast-paced festive period."

Nain emphasises the need for flexibility and adaptability during the festive period. She suggests, “Maintain a portion of your budget for spontaneous opportunities, allowing for quick pivots in strategy to capitalise on new trends and consumer interests."

For smaller brands with more limited budgets, flexibility can be a significant advantage. "Brands of all sizes must maintain agility," notes Habibulla. "Smaller brands can achieve high returns by investing in platforms that offer immediate insights and allow for performance-based optimisation. Real-time optimisation means you're always ready to pivot to where the audience is most engaged."

Similarly, Jena remarks, “Flexibility is critical; the ability to tweak budgets mid-campaign based on real-time performance can make all the difference.”

Creative content: The clutter-breaker

During the festive season, consumers are bombarded with ads, making it difficult for brands to stand out. Creative, impactful storytelling is the solution, but it requires strategic budgeting to ensure the message cuts through the noise.

“To stand out during this period, investing in high-quality, immersive content is critical,” explains Tainwala. "We focus on creating personalised, interactive experiences that capture attention. This often includes leveraging influencer partnerships and programmatic ads for niche audience segments."

Arjun Ranga holds a similar advice, “Investing in innovative and high-impact areas can make a significant difference. Amplifying high-quality creative content that evokes emotional connections with the audience is important. Additionally, through strategic partnerships and influencer collaborations., the message to convey can reach the right audience at the right time.”

Jena points out an interesting element. He says that while larger, well-established brands can afford to–and by extension benefit from–playing on scale, other brands need to be more mindful. 

“For smaller brands like us, it's essential to focus on niche targeting and avoid getting lost in the clutter. Larger brands like Unilever, Loreal can afford to play on scale, but everyone should optimise for ROI. The clutter during festive times is inevitable, so creative, consumer-centric messaging is where we push our resources to cut through the noise,” Jena observes. 

In the real estate space, Jhobalia points to the importance of balancing mass reach with personalised activations: "We use a hub-and-spoke model for our campaigns. While high-reach channels like outdoor billboards and digital platforms get a significant share, we also invest in personalised society activations to ensure that we're connecting with our target audience in a meaningful way."

Nain adds that experiential marketing can elevate the consumer experience. “Experiential marketing, such as in-store events or pop-up experiences, allows consumers to engage with our brands firsthand,” she says. Additionally, investing in the right influencers who align with brand values can amplify a brand’s message in an authentic and powerful way.

For many brands, influencer marketing is a key strategy–which has seen a steep growth in the last few years. As Tainwala notes, "We collaborate with influencers to create authentic connections with our audience, ensuring that our message is relatable and resonates across touchpoints." Creative storytelling, combined with strategic targeting, can make all the difference in a crowded advertising landscape.

Habibulla also sees immense value in personalising messages: “By leveraging customer data and insights, we create campaigns that are tailored to individual preferences. This level of personalization increases engagement and helps us break through the clutter, especially during high-competition periods like the festive season.”

Maximising budget efficiency

A well-thought-out budgeting strategy is not only about maximising returns but also about minimising waste. From small brands to industry giants, the best practices in budgeting are universally applicable.

"For us, the festive period sees an increase in budget allocation by about 20% compared to other quarters,” says Jhobalia. "But we’re very strategic in how we allocate that budget. For smaller brands, focusing on highly targeted, localised efforts can ensure the best use of resources. Larger brands, meanwhile, can balance that with broader campaigns on high-traffic platforms."

Tainwala recommends clear goal-setting and continuous monitoring as essential practices. "Set measurable objectives and track the performance of each channel in real-time. This helps identify which platforms are driving results and allows for timely adjustments, ensuring every rupee is well spent," she remarks.

“A critical best practice is offering incentives—whether through payment plans, festive discounts, or possession gifts—that entice potential buyers. Another is leveraging society activations to establish a personal connection with the audience,” Jhobalia advices. 

Habibulla adds that blending digital with partnerships can enhance both reach and cost-efficiency: “For us at DBS Bank India, we also partner with e-commerce platforms and retail brands to amplify our reach during the festive season. This collaborative approach allows us to align our campaigns with the customer’s shopping journey, maximising engagement without significantly increasing costs."

A crucial tip from all experts is to prioritise long-term engagement over short-term sales spikes. "Building long-term brand equity is key," advises Habibulla. "Focus on consistent messaging and relevant offers, rather than just chasing immediate returns. This ensures the relationships you build during the festive period extend well beyond the season."

The festive season is a golden opportunity for brands, but only those who approach it with a well-thought-out, strategic plan will reap the rewards. By adopting a data-driven approach, staying flexible, and investing in creative, personalised content, brands can maximise their budgets and stand out amid the festive clutter.

Whether you’re a small business with a limited budget or a large enterprise with significant resources, the principles remain the same: prioritise what works, adapt to changing trends, and above all, focus on delivering memorable experiences that resonate with your audience long after the festivities are over.

As Tainwala aptly puts it, "The festive season is a time of heightened consumer excitement, and brands that invest wisely in creativity, data, and agility will be the ones who not only capture attention but also build lasting relationships."