Festive jewellery advertising recalibrates as gold prices hit record highs

New Delhi: As India enters its most crucial shopping window, gold is dominating headlines for reasons beyond ritual. Prices have surged past Rs 1.13 lakh for 10 grams, and volatility is adding layers of uncertainty for jewellery brands and media agencies preparing their festive advertising strategies.

Yet the sector cannot afford to retreat. Visibility during the festive season is inseparable from sales performance.

“As per industry estimates, the overall festive advertising expenditure across all categories in India is expected to be between Rs 48,000 to Rs 51,000 crore in 2025. Of this, jewellery brands are projected to spend a total of Rs 1,500 to Rs 1,700 crore across all media during the festive season. The top 10 organised jewellery brands alone are likely to spend between Rs 375 to Rs 400 crore per month during the festive period,” said Ramsai Panchapakesan, President, Investments & Partnerships at Havas Media India.

He pointed out that this seasonal surge has precedent. “The festive advertising window typically spans Raksha Bandhan, Navratri, Dhanteras, and Diwali, making it a 2 to 3 month phase of elevated spending compared to standard months. This expenditure trend is supported by corresponding sales activity, with gold worth Rs 18,000 to 20,000 crore estimated to have been sold on Dhanteras day alone in the previous year.”

Sujata Dwibedy, Chief Executive Officer at dentsu X, said brands will tread carefully but remain visible. “Gold prices may dip slightly during the festive period. That said, advertising for 18-carat and 14-carat gold jewellery is expected to rise. ROI-driven and localised advertising will be the mantra to drive footfalls. However, some brands may hold off or reallocate budgets depending on inventory margins, cash flow, and risk assessments. With lower volumes, the urgency to advertise reduces, unless value compensation is offered through design, offers, or promotions.”

She noted that while the jewellery category’s AdEx is likely to shrink in absolute value, digital and OOH will gain share. “Overall, AdEx for jewellery and gold as a category is likely to decline. Spends will skew towards digital and OOH, while offers and limited creatives may still appear in print and TV. Historically, print has been the prominent platform for jewellery advertising, but we may see a further shift. Brands are increasingly investing in Meta, Google, OTT, and especially CTV. Video advertising continues at scale, but with a sharper focus and targeting that ensures better ROI.”

Looking ahead, Dwibedy expects “more spend will move towards digital and performance-oriented channels where targeting, footfall drives, offers, and conversions can be measured more tightly. Traditional media will still play a role in delivering reach, trust, and prestige, but with reduced budgets or shorter bursts. Ad volumes may remain high compared to last year, but in terms of absolute cost, overall spends are expected to come down.”

Print holds ground in Bharat markets

Despite digital’s rise, print continues to command credibility, particularly in smaller towns. “From a media perspective, print may see some correction versus 2024, but will remain strong, particularly in regional newspapers and festive film/print supplements around Diwali. Brand visibility and credibility are still closely linked to large print presence in smaller towns,” Panchapakesan said.

He outlined an expected media share split: Print around 40%, television 30%, digital and video about 20%, and OOH plus radio and hyperlocal media close to 10%.

Gold as emotion, not just investment

For many advertisers, the emotional weight of gold overrides short-term price spikes. “Festivals in India are incomplete without gold, and that cultural truth outweighs short-term price swings. We imagine we buy gold for the festival, but in truth, the festival finds its meaning in gold. Brands in this space will remain visible because the season is about celebration, tradition and the joy of giving,” said Kirti Meera Sharad, SVP Strategy at BBDO India.

She added that strategy, not spending, will evolve. “What might change is how they spend; we’ll see sharper use of digital and OOH for immediate impact and action, while television and print will continue to anchor credibility and trust. Rather than retreating, jewellery advertising will lean into narratives of permanence and value, reminding people that gold is as much an emotion as it is an investment.”

Sharad pointed to BBDO’s campaign for the World Gold Council. “Our latest campaign, The Moment Is Gold, captured this cultural truth in a fresh way by celebrating everyday moments of meaning. This is exactly the kind of narrative that can help the category stay relevant to younger audiences, even when prices are at record highs.”

Brands recalibrate strategies

For brands, recalibration is the word of the season. “With gold prices at an all-time high, jewellery brands are definitely recalibrating, not just on product strategy, but also in how we allocate ad budgets across platforms,” said Namita Kothari, Founder at Akoirah by Augmont.

“Digital continues to be a stronghold. It's highly targeted, performance-led, and ideal for engaging younger audiences. While print and OOH still build festive visibility and brand trust, we’re leaning into platforms that let us tell a more detailed, educational story,” she said.

Her focus is on balance. “Each medium caters to a different audience, and a balanced mix in the right proportion, aligned to the target consumer, is key to an effective festive marketing strategy. This season, the priority isn’t just reach; it's relevance, precision, and return on investment.”

Alternatives push forward

Soaring gold prices are also benefiting emerging categories. “The surge in gold prices is bound to push jewellery brands into advertising even more this festive season. Rather than cutting back, most will need to amplify their AdEx, whether through offers, promotions, or stronger value-driven narratives to reassure customers and protect festive demand,” said Rupali Shrivastava, Chief Marketing Officer at Limelight Lab Grown Diamonds.

For her category, the opportunity is even sharper. “For lab-grown diamonds, this environment works in our favour. We see it as the perfect opportunity to highlight our value proposition: the luxury of larger, sustainable diamonds at a far more accessible price point. Rising gold prices may have made gold jewellery harder to justify, but they have also made it easier for consumers to consider meaningful alternatives like lab-grown and brands will reflect this shift in how they advertise.”

Dwibedy added that coin listings on e-commerce and quick-commerce platforms are also shaping festive strategies.

Stability in GST offers a cushion

While GST 2.0 reforms are reshaping other sectors, jewellery is shielded. “Despite the GST 2.0 reforms, GST rates on gold and jewellery remain unchanged at 3% on gold content and 5% on making charges. In price-sensitive markets, retailers may increasingly promote old-for-new exchanges, encouraging consumers to recycle gold and keeping sales momentum strong despite elevated prices,” Panchapakesan explained.

Consumers adapt, not withdraw

High prices do not necessarily mean low revenues. “The surge in gold prices to record highs just ahead of the festive season will have a mixed impact on jewellery sales. On one hand, cultural and emotional attachment to gold during Navratri, Dussehra, and Diwali ensures that demand does not vanish; gold remains a must-buy. However, with prices above Rs 1.10 lakh per 10 gm, consumers are likely to shift to lightweight, modular, or 14–18k jewellery instead of heavy 22k pieces,” said Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd. (RSBL).

This shift could keep revenues intact. “Urban buyers may turn to digital gold, ETFs, or gold coins for affordability, while tier-2 and tier-3 markets may focus on traditional jewellery, albeit in smaller ticket sizes. Brands with innovative designs, flexible savings schemes, and strong trust signals are likely to capture maximum demand despite the price surge,” he added.

The season remains non-negotiable

Across agencies and brands, the message is clear. Gold’s volatility may change advertising strategies, but its cultural permanence keeps the category anchored. The festive season is unlikely to shine less brightly. If anything, record prices are pushing marketers towards sharper storytelling, inventive media use, and more performance-driven advertising than ever before.

As Sharad summed it up, festivals may not be festivals without gold. And for advertisers, retreat is not on the cards.