Brands Bet Big on Influencer Marketing This Festive Season, Ad Spend to Reach Rs 900 Crore

With Rakshabandhan kicking off the festive season, CAIT projects Rs 30,000 crore in Rakhi trade. Companies are set to spend a record Rs 900 crore on influencer marketing to attract buyers.

The arrival of the festive season in India is not merely a celebration of cultural and religious traditions, but also a major catalyst for the national economy. With Rakshabandhan setting off the festive calendar in two days, shopping activity across the country is picking up rapid momentum. Highlighting this economic surge, the Confederation of All India Traders (CAIT) estimates that Rakhi trade alone will hit Rs 30,000 crore this year. Consumers are eager to spend, utilizing personal savings as well as credit to celebrate. To capitalize on this high-spending environment, companies are revamping their promotional strategies, shifting significant portions of their advertising budgets toward newer marketing channels.

Rs 900 Crore Ad Budget Poured Into Influencer Marketing
To reach consumers directly during the festive shopping spree, brands are increasingly leaning on content creators rather than traditional advertising channels. Data from creator intelligence platform Qoruz reveals that brand expenditure on influencer marketing is projected to reach Rs 900 crore this festive season. This represents a 29 percent surge compared to the previous festive season, when brand spend on content marketing stood at approximately Rs 700 crore.

The total volume of brands partnering with digital creators has also expanded significantly over recent years. In 2023, around 4,500 brands engaged content creators for promotion, a figure that rose to 5,200 brands in 2024. By 2025, approximately 6,000 companies had adopted creator marketing, and that number has climbed further to 7,200 brands in the current year. These figures reflect a decisive shift in corporate ad allocation toward digital storytellers.

Surge in Demand for Micro Creators and Regional Focus
A prominent trend this festive season is the overwhelming preference for nano and micro creators over high-profile celebrities. According to the report, nano and micro creators accounted for 75 percent of the total brand demand in the previous season. In contrast, mega creators and mainstream celebrities captured a mere 5 percent share. Brands favor local influencers because they possess a deeper understanding of local culture and environment, enabling more authentic connections with regional audiences.

Furthermore, content creators from smaller towns are securing a growing footprint in the market. While creators based in metro cities still hold a dominant 62 percent market share, the share of creators from Tier-2 and Tier-3 cities has climbed to 38 percent. As companies expand their promotional budgets, they are placing greater emphasis on localized content over big brand names to effectively tap into diverse consumer segments.

Market Valuation Dynamics and Corporate Spending Concentration
Qoruz co-founder and CEO Pranesh Bhuvneshwar noted that while company participation in creator marketing has grown by 60 percent since 2023, the overall market value has surged from Rs 350 crore to Rs 900 crore. This trajectory represents a strong annual growth rate of 37 percent. The shift demonstrates how corporate festive budgets are being funneled directly into the creator economy.

Despite the market's rapid expansion, capital distribution remains highly concentrated. According to Pranesh Bhuvneshwar, 65 percent of the total festive content ad spend is captured by just 10 to 15 percent of top creators. On the brand side, approximately 66 percent of the total Rs 900 crore expenditure will be driven by a group of roughly 700 to 1,100 major companies.

What this means for you
Across India: The Rs 900 crore ad spend on influencer marketing during the festive season will unlock new earning opportunities for nano and micro content creators in smaller towns. Additionally, consumers shopping on credit are advised to manage their budgets carefully to avoid post-festival financial strain.

Questions & Answers

1. What is the estimated total trade volume for Rakshabandhan this year?
According to trader organization CAIT, the Rakshabandhan festival is estimated to generate a business volume of approximately Rs 30,000 crore this year.

2. How much are brands spending on influencer marketing during this festive season?
According to a report by platform Qoruz, companies are projected to spend around Rs 900 crore on content creators and influencers this festive season, representing a 29 percent increase over last year's Rs 700 crore.

3. How high is the demand for micro creators compared to big celebrities?
In the previous festive season, nano and micro creators captured 75 percent of the total brand demand, while mega creators and celebrities accounted for just 5 percent.

4. What is the market share of creators from Tier-2 and Tier-3 cities?
Creators from smaller towns and Tier-2 and Tier-3 regions have expanded their market share to 38 percent, while metro city creators hold 62 percent.

5. How many companies engaged content creators for promotion this year?
In the current year, around 7,200 companies partnered with content creators, up from 4,500 brands in 2023, 5,200 brands in 2024, and 6,000 brands in 2025.

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