Onam 2025 ad spends jump 15–20% with traditional media leading and digital growing rapidly

New Delhi: As Kerala steps into its biggest annual shopping and celebration window, advertisers are opening their wallets wider. This year’s Onam is expected to deliver one of the strongest festive advertising seasons in recent memory, with brands sharpening both their hyperlocal and diaspora-focused strategies. 

Media planners attributed it to the improved economic sentiment, rising foreign remittances, and government festive allowances fuelling the surge in consumption and, in turn, ad spends. 

While traditional media continues to dominate Kerala’s communication landscape, digital channels, influencer-driven storytelling, and regional OTTs are increasingly woven into the mix.

Binu Thomas, Managing Partner, Investments & Buying, Havas Media India, noted that Onam continues to set the tone for India’s broader festive marketing season. “Onam remains one of the biggest festive advertising windows in Kerala and a key kickoff for India’s festive marketing season. Advertisers are expected to increase their Onam-related spending by 15–20% compared to 2024, driven by improving economic sentiment and renewed consumer appetite. Brands across consumer goods, retail, personal finance, FMCG, travel, and auto are leading the push, planning campaigns earlier in the festival period to capitalise on sales momentum.”

Thomas added that while the media mix is evolving, the balance between tradition and innovation remains. “The media mix is evolving, with digital expanding quickly, but traditional platforms still command a major share. Print media remains influential in Kerala, often outperforming TV; however, TV still commands a strong reach. Digital continues to be the fastest-growing medium. Outdoor advertising (OOH) and radio are also growing, though at a slower pace.”

Echoing this shift, Ratnakar Bharti, VP, Media, Mudramax, detailed the evolving budget allocations this Onam. “Festive budgets are being strategically reallocated in line with evolving media habits. Digital platforms, i.e. regional OTTs, and other digital platforms are attracting 40–45% of spending, driven by performance and youth reach. TV, especially Malayalam GECs, holds 30–35% for festive appeal. Print retains 10–15% for hyperlocal reach, while OOH sees a revival with 8–10% in Kochi and Thiruvananthapuram.”

Trishul Bhumkar, Managing Partner, Zenith India, pointed to a tangible consumption spike during the season. “During Onam, Kerala sees a 20–30% increase in retail consumption across categories. This is fuelled by foreign remittances and government spending on festive allowances, making all clients allocate higher budgets for this time period.”

While jewellery, retail, and FMCG remain dependable anchors, several other categories are pushing aggressively into Onam advertising this year. “Gold, Auto, real estate, BFSI for loans, E-commerce, electronics, etc. will see a surge beyond CPGs,” Bhumkar said.

Despite rapid growth in digital advertising, especially through targeted social campaigns and influencer activations, Kerala remains one of the few Indian states where print’s impact is still formidable. Thomas pointed to a nuanced evolution rather than an outright media shift. “Influencer marketing is trending, especially among brands blending regional storytelling with emotional appeal. Many national and regional advertisers are deploying micro-influencers in Kerala for higher engagement. Brands are betting on emotion-led, culturally grounded narratives, while increasing precision targeting via digital.”

Bhumkar noted that channel choices are increasingly being made category by category. “All localised media, including cinema, will see an increase in priority-based categories.”

This means Malayalam GECs, regional newspapers, and high-visibility outdoor formats will continue to draw festive budgets, even as marketers test regional OTTs, YouTube creators, and hyperlocal social content to engage younger audiences.

National vs local: the spending balance

One perennial question during Onam is whether national brands are stepping up to match Kerala’s entrenched local advertisers. Bhumkar assesses that it depends heavily on the product category. “Depending on categories, localised brands will dominate,” he said.

Adding perspective, Ratnakar Bharti elaborated, “While national brands in consumer durables, auto, and e-commerce are more active this Onam, regional players continue to command 60–65% of ad spends. Their dominance stems from cultural authenticity, trusted local presence, and strong integration with regional media and influencers.”

Brands eye diaspora-driven reach

Kerala’s large diaspora has long been a factor in brand planning, particularly for cultural categories like jewellery, ethnic wear, and packaged food. With improved digital targeting tools, advertisers are now able to tap into audiences not just in the Gulf but also across other Indian metros with strong Malayali populations. “The diaspora is spread across the country and also in the Middle East, so with basic distribution and marketplace availability, advertisers will treat it as an all-pervasive opportunity, especially for culture-specific categories,” said Bhumkar.

“Onam has grown beyond a regional moment into a diaspora-driven, pan-India opportunity, especially on digital. We’re targeting Malayali audiences not just in Kerala, but also in Indian metros and globally across the GCC and the US. Campaigns focus on programmatic geo-targeting, Malayalam creatives, and festive bundles,” Ratnakar Bharti added.

For many brands, this dual lens of hyperlocal retail activation paired with diaspora-targeted digital is shaping creative decisions and spend allocation.

Industry leaders agreed that while the tools and tactics are shifting, Kerala’s Onam advertising retains a strong backbone of traditional media and emotion-driven storytelling. The big difference in 2025 is how digital is being layered on top, not as a secondary medium, but as a co-equal in campaign planning. That means more micro-influencers, more targeted diaspora outreach, earlier campaign launches, and greater use of performance metrics alongside brand-building narratives.

If media leaders' growth forecast and consumption bump prove accurate, Onam 2025 could well be a bellwether for how India’s upcoming festive season will play out nationally, where the right cultural hooks, combined with the right media blend, unlock both sentiment and sales.