InMobi: AI Powers Record-High Festive Spending

India’s 2025 festive season is witnessing a major shift in consumer behaviour, with Artificial Intelligence now driving how people discover, evaluate, and engage with products. According to The Marketer’s Guide to India’s Festive Season 2025, a joint report by InMobi Advertising and Glance, 79% of Indian shoppers are actively relying on AI-powered recommendations to enhance their buying experience.

The study is based on responses from 1,033 consumers across Android and iOS devices and presents key insights into spending patterns, digital engagement, and the influence of AI across multiple touchpoints.

Spending up, digital-first preferences dominate

Festive spending is at an all-time high, with 83% of shoppers planning to spend more than they did last year. The average spend is projected to cross ₹23,000 per buyer. Online platforms remain the preferred channel, with 64% of consumers intending to complete all their festive purchases digitally. Additionally, 83% say they will research online before making final decisions, signaling a strong appetite for product discovery and validation before purchase.

Apps are also central to consumer decision-making. Three in four shoppers prefer saving offers within apps to revisit later, indicating that persistent engagement—rather than one-off advertising—drives festive conversions.

AI defines shopping experiences and brand visibility

AI has emerged as the key enabler of seamless, intuitive shopping. Consumers are increasingly drawn to features like contextual product recommendations, voice search, and virtual try-ons. An overwhelming 87% of users say virtual try-ons help them feel more confident about their purchases, while 88% welcome AI-generated festive content directly on their lock screens.

Also read: Walmart Launches AI Super Agents to Boost Retail Operations

Omnichannel brand presence has also become critical. The report notes that 92% of consumers are more likely to purchase from a brand that appears consistently across platforms—from mobile lock screens and social feeds to commerce apps and connected TVs. AI makes this consistency not only scalable, but also personalised and real-time.

Marketers advised to act early and think native

With the most effective marketing window falling two to four weeks before major festivals, brands are being urged to front-load campaigns during this crucial period. Performance benchmarks from the 2024 season show that immersive ad formats like full-screen playable ads delivered 1.5x higher click-through rates, and lock-screen placements lifted impressions by over 200%.

The report positions AI as more than a campaign enhancer—it is now the strategic core of consumer engagement. As users expect intelligent, timely, and cross-platform experiences, brands that integrate AI across every stage of the funnel are poised to see higher conversion and lasting brand trust.

Latest articles

Related articles