The Indian festive season is a strategic battleground for brands – from Diwali to Eid and Christmas, consumer spending surges. In recent years, marketers have turned to AI to turbocharge these campaigns with precision targeting and personalization, while grappling with the need to keep campaigns creative, emotional and culturally authentic. Across sectors – retail, e‑commerce, FMCG, tech and services – AI is being used to sift massive data and optimize ads in real time, even as brands lean on generative tools to scale creative production. At the same time, industry leaders emphasize that human insight and storytelling must ground these AI-driven efforts so they don’t feel cold or gimmicky.
Precision Targeting, Personalization and Optimization
AI enables far sharper targeting and personalization in festive campaigns. Platforms like Google and Meta analyze customer data (searches, browsing, purchase history) to serve hyper-relevant ads and product recommendations in real time. For example, Google reports that 87% of Indian consumers use Google/YouTube during holiday shopping, and its new AI-powered ad features help brands meet them there. Cashify (a used-smartphone e‑commerce site) used Google’s AI Max for Search campaigns to adapt ad content automatically; the result was an 18% lift in clicks, 15% more conversions, and 12% lower customer-acquisition cost. Similarly, Swiggy (food delivery) saw nearly a two-thirds drop in re-engagement costs by testing Google’s Performance Max with a new retention mode.
Data-driven personalization is also prominent on social platforms. Meta’s research finds 77% of Indian festive shoppers say a personalized ad inspired their purchase, and Reels (short video) have become a key discovery channel. Meta India’s head Arun Srinivas notes “shoppers are turning to AI for inspiration, creators for credibility, and Reels for discovery,” encouraging brands to use new tools (like Meta’s “Digital Utsav” creatives and AI video features) to engage holiday buyers. In practice, marketers combine AI-driven segmentation with user profiles (often managed in a CDP) to deliver the right message at the right time. For instance, one Indian publisher used a CDP to analyze reader interests and send tailored push notifications – this 95% boost in CTR and reduced message clutter greatly improved engagement. Similarly, e‑commerce sites use AI to power “Recommended for You” sections, dynamic pricing and email messaging tuned to each customer’s past behavior. These precision tactics turn festive campaigns from one-size-fits-all blasts into individually relevant experiences, raising conversions and ROI.
Generative AI in Creative Production
Beyond data targeting, generative AI is revolutionizing creative content for festive ads. Brands are using tools like ChatGPT, DALL·E, Midjourney and video-gen AIs to produce ad copy, images, and videos at scale. For example, Coca-Cola’s 2023 Diwali initiative #MagicWaaliDiwali let users create personalized AI-generated greeting cards. Consumers could go online and, leveraging OpenAI’s DALL·E and GPT-4, generate festive illustrations (with diyas, rangoli, rickshaws and Coke bottles) for each friend and family member. The campaign’s “Create Real Magic” platform was praised by Coca-Cola’s India marketing head for weaving together technology, art and culture to let people “express their emotions during the festivities”. Such generative campaigns add creativity and scale: global use of Google’s AI creative tools has surged, and new features like Google Ads’ “Generated for You” (auto-producing brand-aligned images/videos from product catalogs) are on the way.
Other recent examples abound: ITC’s Sunfeast Dark Fantasy (FMCG) ran an AI-driven Diwali promotion where fans could upload a selfie and instantly star alongside Bollywood icon Shah Rukh Khan in a personalized ad. Similarly, Rebel Foods’ Behrouz Biryani (2024) offered Diwali orders with personalized video birthday-style messages from celebrity Saif Ali Khan, generated on the fly. Burger King India let customers design custom “firecracker” packaging via AI, and even furnishing-mattress brand Duroflex in 2025 enabled fans to generate Onam greetings voiced by actress Amala Paul. These campaigns show how generative AI can produce tailored visuals and videos – giving each consumer a “special” creative piece – and free human teams to focus on concept and tone. (For instance, Marketers use text-generation AI to draft hundreds of festive email subject lines or social captions, then refine them manually, blending efficiency with human polish.)
Coca-Cola’s “#MagicWaaliDiwali” campaign (2023) invited users to generate personalized Diwali greeting cards via AI. Using DALL·E and GPT-4 to mix Coke iconography, rangoli and diyas, the campaign let fans create custom messages for each friend.
Balancing AI with Authentic Storytelling
Industry leaders caution that AI is a tool, not a substitute for insight or culture. The most memorable festive campaigns still hinge on human truths and emotions, with AI quietly powering personalization in the background. Creative experts note that Cadbury’s famous 2021 “My Ad” Diwali campaign – where small shops saw Shah Rukh Khan personally name their stores – wasn’t an AI showcase but a lesson in emotional context. Cheil India’s Sudhir Das explains the SRK ads “used AI to execute a very moving and human message” at scale. SW Network’s Raghav Bagai emphasizes it was “deeply rooted in a real, festive insight: small local businesses struggling to gain attention during Diwali… Using SRK’s face (the nation’s most beloved icon) to give them a voice? That’s powerful”. In short, personalization at scale, emotional insight and perfect timing made the campaign resonate – not the AI gimmick. As one industry CEO put it: “It was an AI + Idea + Shah Rukh Khan moment… not just all AI. Contextuality + creativity delivered by a powerful ambassador”.
Keeping that spirit is key today. Dentsu’s global survey found that 87% of CMOs say strategy still demands creativity, empathy and humanity, even as they adopt AI. Dentsu Chief Patricia McDonald warns: “Automation is vital to keep up, humanity is vital to stand out. If every brand chases the same signals with the same tools, we are simply running harder to stand still… the more we embrace AI, the more human we must become; unearthing deeply personal truths, grounded in culture”. In practice, brands maintain emotional authenticity by grounding AI-driven content in local culture and values. They partner with trusted Indian creators and celebrities (e.g. using regional talent in ads), reference festival traditions, and weave stories of family and togetherness. For instance, Coca-Cola’s campaign carefully incorporated classic Diwali motifs (diyas, rangolis, martabans) around the user’s own AI-generated images. Similarly, tech marketers ensure AI-produced visuals and copy are vetted for cultural sensitivity (avoiding tone-deaf automated output) and then injected with festive warmth.
Meta’s festive playbook highlights another angle: creators and community-driven content. Nearly half of shoppers now follow influencers for festive deals, and creator-made content is highly influential. Thus many brands use AI insights to identify the right influencer or social hook, but let the human personality carry the message. As Meta India’s Arun Srinivas notes, the goal is to enable businesses to “meet [changing] consumer expectations with innovative tools” – meaning use AI to streamline production (e.g. auto-editing video, AR filters, etc.) but rely on creative teams and cultural ambassadors to steer the narrative.
Avoiding the “Sea of Sameness” and Other Pitfalls
A major challenge is that overly optimized, formulaic campaigns can feel generic. Many marketers worry about a “sea of sameness” if everyone chases the same AI-driven cues. As one CMO noted, “the more we optimize too closely to algorithmic signals, the more we become indistinguishable”. Indeed, Social Samosa reports some AI-led ads are already being forgotten. As Toaster INSEA’s creative head Bhawika Chhabra observes: “the novelty of AI has worn off, and audiences now want cultural relevance and emotional impact, not just clever tech tricks. In practice, brands must guard against data-driven marketing that feels impersonal. This means using personalization judiciously (so each communication still feels one-to-one, not machine-like) and limiting gimmicks. For example, Zomato quickly pulled back after finding users distrusted AI-created food images; Trust must be maintained. Customers also expect privacy and transparency – so marketers balance targeting with user consent, and avoid creepy over-personalization.
Another pitfall is over-reliance on novelty. Experts warn that “doing something with AI” is not enough unless it solves a real consumer problem. Rajiv Dingra (ReBid founder) notes that AI in marketing has matured from a “personalization engine to a full creative and analytical co-pilot”. That means brands should use AI not just to tinker with ad text or segments, but to dynamically reshape campaigns in real time. For example, some advanced advertisers use agentic AI to automatically adjust bids, creative elements and messaging as they learn what’s resonating during the festival week. But Dingra cautions most brands have only “scratched the surface” – few integrate AI end‑to-end (linking creative, media, data and feedback loops) to anticipate trending topics or switch creative lanes on the fly. Overcoming this requires strategic planning: marketers must set guardrails so AI outputs align with brand values, and always have human review loops to maintain authenticity. As one creative director put it, the real art is knowing when not to lean on AI’s novelty – using it to “solve a problem” rather than show off cool tech.
Tools and Platforms Enabling the Balance
A range of tools help marketers walk the line between data and soul. Advertising Platforms: Google and Meta have rolled out festival-focused AI products. Google’s Marketing Live India 2025 unveiled AI Overviews (summarizing search insights), “AI Max” for one-click campaign enhancement, and Smart Bidding Exploration – features that optimize campaigns toward diverse search queries and adapt in real time. Google also previews new creative-generation tools (e.g. “Generated for You” images/videos using product feeds) to speed up ad design. Meta offers similar AI boosts (e.g. automated optimization across Facebook/Instagram ads), alongside specialized holiday toolkits like Vibes and Digital Utsav. Marketers also use CDPs (Customer Data Platforms) to consolidate offline and online data – enabling seamless personalization. For instance, after deploying a CDP across 300 million users, The Indian Express personalized its “MyExpress” content feeds and push notifications, boosting click-through rates by 95% through hyper-targeted messaging.
Creative Automation: Many agencies and vendors now offer creative–AI pipelines. Generative video tools (e.g. Rephrase.ai, Synthesia) can produce multi-language ad videos featuring virtual hosts. Designers use AI-powered image tools (Adobe Firefly, Midjourney) to create festival artwork, then apply human-led tweaks. Copywriters employ GPT-4 or Gemini to draft hundreds of holiday taglines or blog posts, then cherry-pick the best lines. Even A/B testing is getting AI help: platforms can automatically generate dozens of ad variants (color, headline, CTA) and learn which version resonates. These tools vastly increase scale; the key is to apply them under a human creative vision so the final ad still feels fresh.
Data & Media Tools: AI-driven DSPs (demand-side platforms) and adtech use machine learning to automatically place ads where they’ll convert best. For example, performance-max media buys let brands cross-reach search, video and display with one campaign, and AI adjusts spend in real time. Brands also tap social analytics tools that use AI to surface trending festival topics or gauge sentiment, informing the campaign tone (e.g. if AI notes a surge in searches for eco-friendly Diwali lamps, brands might highlight sustainable products).
In short, today’s marketing stack already has many AI features: generative content models, predictive analytics, CRM/CDP integrations, dynamic optimization engines, and even voice AI for regional languages. The advanced examples in the industry use these in concert. Mumbai Indians cricket team, for example, partnered with AI platform Gan.ai to deliver personalized video messages from star players via Instagram DMs, tying fan data to automated creative. And MG Motor’s “100 Years” campaign used AI-generated archival images of its founder (based on text prompts) to evoke heritage. Each of these cases uses AI-driven personalization and storytelling: the former to engage individual customers, the latter to ensure the message hits home.
