After a volatile H1, advertising anticipates smoother sailing in H2

The first half of 2025 was anything but business as usual for India’s advertising industry. A landscape shaped by political transitions, global volatility, and a mixed bag of cultural and sporting events saw marketers walking a tightrope.

According to WPP and Dentsu's mid-year forecasts, global ad revenues are expected to grow at a lower rate than earlier estimates, reflecting global caution. In contrast, the Indian market performed better, buoyed by stable GDP numbers and large-scale events such as the Maha Kumbh, the Champions Trophy, and the IPL. However, a sudden national crisis shifted public sentiment and priorities, impacting not just business strategies but day-to-day life. Consumer focus shifted from leisure and spending to safety, security, and collective uncertainty.

As brands recalibrated strategies, sectors responded with varying levels of confidence. Industry experts weigh in on what defined H1 and what will shape the high-stakes second half of the year. 

Season of strategic resets

The first half of the year was marked not by a frenzy of spending, but by a deliberate, calculated approach.

“The first half of 2025 has largely reflected a mood of pragmatic optimism,” said Uday Mohan, COO, Havas Media. “Advertisers showed a balanced approach: confident enough to invest in growth opportunities, but also mindful of market uncertainties.”

This sentiment was echoed across the board. The election cycle, inflationary pressures, and shifting global cues led to a tentative Q1, with most brands pausing to read the market before committing large budgets.

“It felt like a reset,” noted Amita Srivastava, Vice President – West, Carat India. “Most advertisers wanted to play it safe. But by Q2, there was a visible shift, and we started seeing momentum from sectors like auto, BFSI, and personal care. Most clients weren’t really going all-in, but they were definitely starting to invest with more purpose. It wasn’t aggressive spending, but more of a steady, strategic comeback.”

She added that this measured momentum has important implications for the rest of the year:

“And if you go by projections, the ad industry is expected to grow around 11% this year – so the foundation laid in H1 is crucial for what’s coming next.”

In many ways, H1 wasn’t about grabbing attention but regaining control. 

Guru Mishra, SVP at RepIndia, contextualised the caution with data. He said, “The advertising sector clearly showcased cautious optimism as the growth in ad spends were moderate. Forecasts done by WPP and Dentsu put global YOY ad revenue growth between 5.9 - 6% down from the initial estimate of 7.7% which reflects the same.”

He shared that the brands from all major sectors followed the market cue, economic headwinds & geopolitical shifts with caution. 

“As reported by many agencies and media outlets, Ad revenue growth in India positively rose to 7% due to stable GDP numbers, positive media opportunity due to key events such as the Mahakumbh, the Champions Trophy and the IPL,” Mishra added.  

H1’s measured approach of waiting, watching, and then selectively investing directly influenced how brands approached channel choices.

And as spending slowly returned, it brought with it a rethink of where and how brands showed up.

Redrawing the media blueprint

While digital remains the dominant force, its growth curve has begun to mature. The media mix in H1 saw a clear shift toward balance and contextual agility.

“Digital continues to be a mainstay,” Mohan observed, “but growth is more measured compared to the previous years’ surges. Television has regained some traction, thanks to large events and appointment viewing, while out-of-home has seen a healthy revival, supported by increased mobility and urban footfall. Clients are looking for balanced portfolios rather than over-indexing on any one medium.”

This means that platforms are being picked more deliberately, and no single medium is guaranteed default priority anymore.

Mishra echoed the shift, noting that while digital continues to be a dominant force, its growth is now “more mature than plateaued”, with brands favouring contextually nuanced and agile formats.

“CTV and online streaming have seen rapid growth in H1 as digital extensions of linear TV. While traditional TV hangs in balance, outdoor has resurged with programmatic-integrated formats. Radio has remained steady, while print and TV are under budget stress.”

The innovation within formats is helping older channels stay competitive. The story isn’t about digital replacing traditional; it’s about convergence, precision, and smarter orchestration.

Srivastava captured both the evolution of digital and the resurgence of legacy formats. “Digital is still growing. It’s projected to cross 60% of total ad spend by 2026. However, the growth is becoming more focused. Not all digital is getting equal love,” she said.

She noted that influencer campaigns and top-funnel social spends are now under greater scrutiny, while performance, programmatic, regional video, and connected TV are seeing increased traction.

Her insight highlights a broader industry trend: digital strategies must now prove their value, not just their virality.

“TV made a bit of a comeback during the IPL and elections—moments where scale really matters,” Srivastava added.

She also pointed out the resurgence of Out-of-Home, especially in urban markets, driven by political campaigns, new launches, and retail footfalls.

“Even retail media and phygital activations are starting to find a place in the mix,” she added. “So yes, it’s a more balanced and nuanced media landscape now.”

In short, while digital is evolving, linear formats are finding new purpose, and outdoor is no longer an afterthought. This diversification of media choices was also shaped by real-world events, which tested both the flexibility and foresight of brand teams.

Disruptions & cultural catalysts

H1 wasn't without its jolts. The unexpected mid-season halt of IPL, triggered by a major crisis, was a body blow to advertisers and platforms alike.

“Advertisers scrambled to avert the crisis during the mid IPL season halt,” said Mishra. “Probably the worst nightmare for BCCI, Jio Hotstar and brands who plan everything in advance, disrupting a mega event that triggered the loss of risk of approximate ad spending of INR 3000 cr spanning digital, TV, outdoor & print.”

This pause came during what is typically one of the busiest and most lucrative periods on the media calendar. For marketers, it wasn’t just a matter of pulling back; it challenged their planning depth and ability to pivot under pressure.

“However, brands showed maturity and intent to wait while taking a strategic pause and pivoted once the event resumed,” he added.

If IPL was a risk for the advertisers in H1, Maha Kumbh Mela was a reward.

“It was a culturally charged rare event,” Mishra added. “It offered brands to come close to 60 Mn + Indians who gathered at one place all together at once. Collectively, brands spent close to INR 3-4 thousand crores with a focus on mobility, digital activation, functional & experiential branding, while OOH & DOOH as a lead medium.”

These cultural flashpoints, one disrupted, the other maximised, highlight how external factors continue to significantly shape advertising strategy. Whether it’s a religious congregation or a sporting spectacle, the ability to align campaigns with real-world momentum remains critical.

Beyond cultural and sporting moments, the health of the ad market depended on which sectors stepped up and which ones stayed on the sidelines.

Sectoral performance

Beyond events, the sectoral performance varied widely.

Mohan noted that certain sectors leaned into growth despite the broader caution. “Retail and QSR categories showed resilience. Despite broader caution in discretionary spending, they continued investing,” he said.

He further shared that e-commerce, fintech, travel, and entertainment emerged as robust drivers of advertising recovery in H1. He pointed to a noticeable rise in activity from challenger brands in health-tech and D2C consumer goods, many of which embraced digital-first strategies combined with regional activations to scale awareness and gain market share.

However, the momentum wasn’t universal.

“On the flip side, consumer durables and export-linked sectors were more subdued,” Mohan added.

He observed that real estate and heavy manufacturing players remained especially cautious, holding back on investments due to cost pressures and elongated business cycles. Sectors exposed to global trade dependencies also stayed muted, reflecting continued uncertainty in export markets.

These patterns offer a preview of how categories might behave going forward. While some are clearly accelerating their media investments, others are still waiting for the right signals, economic or cultural, to re-enter the playing field.

And as we move into the second half of 2025, that strategic divergence becomes even more pronounced. The foundation laid in H1, as all three agree, sets the tone for a potentially robust H2.

Precision over panic

If H1 was about recalibration, H2 is shaping up to be about precision.

“Most brands are gearing up for a strong finish to the year,” Srivastava said. “With elections behind us, and a cricket-heavy festive season ahead, the mood is cautiously upbeat. But campaigns are being planned with sharper focus—regional relevance, outcome-oriented planning, and agility are taking centre stage.”

Her sentiment was echoed by Mishra, who forecasted a layered H2:

“Heading into H2 2025, brands will continue to embrace optimism with caution, prepared with a tactical response. Micro trends such as strong consumer demand emanating from rural areas. Brands are expecting gains due to positive GDP outlook, cuts in repo rates and tax rebates that may boost confidence of global and domestic investors.”

In other words, the big-picture outlook looks good, but what’s happening day-to-day on the ground could still hold back short-term progress.

“H2 might still be muted in terms of positive immediate consumer demand as India is bracing itself for the Monsoon season. Break out sectors such as e-commerce & fintech will lead while SME, Realty, Education, BFSI, Tech/Telco, automotive industry and consumer durables are expected to see positive gains in Q3 & Q4,” added Mishra.

As we enter the second half of 2025, advertisers are no longer spraying budgets across platforms; they are sharpening their aim. With economic signals largely positive but not without ambiguity, impact, measurability, and agility are the new imperatives.

If H1 was about rebalancing, H2 would be about precision. You will see spends being deployed where they matter most, and every rupee will be expected to deliver results. - Amita Srivastava

The industry’s resilience has been tested and proven in H1. What remains is to see which brands can not only survive, but lead, in a high-stakes, high-intensity second half.

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