Mumbai: GroupM, the media investment group under WPP, has released its latest This Year Next Year (TYNY) advertising forecast, projecting a 7% growth in India’s advertising industry, reaching ₹1,64,137 crore in 2025. This marks an incremental addition of ₹10,730 crore, positioning India as a top 4 growth market globally.
According to Prasanth Kumar, CEO, GroupM South Asia, India is at the forefront of a marketing revolution fuelled by AI, data privacy, and immersive technologies. Digital advertising now commands over 60% of total ad spend, with a major shift toward personalised engagement, commerce-driven marketing, and AI-powered innovations.
Digital and TV Dominate Ad Spend
Ashwin Padmanabhan, Chief Operating Officer, GroupM, highlighted that Digital and TV together account for 86% of total ad spend, with streaming TV contributing 12.6% of total TV ad revenue. Sectors such as SMEs, real estate, education, BFSI, and technology/telco—which make up 60% of total advertising—are set to expand at around 10%, further accelerating market momentum. Additionally, rising investments from EVs, fintech, and gaming are fueling further growth.
India’s Advertising Market Ranks 9th Globally
“With India’s GDP projected to grow by 6.5% in 2025, the country’s advertising sector remains strong, ranking 9th globally, said Parveen Sheik, Head of Business Intelligence, GroupM. Digital ad spends are nearing ₹1 lakh crore, driven by AI, commerce, retail media, and hyper-personalization. Sheik emphasized that brands must embrace agility, data intelligence, and sustainability to maximize impact in this evolving landscape.”
Key Trends Reshaping Advertising in 2025
The TYNY report outlines 10 key trends that are set to redefine India’s marketing and advertising ecosystem:
- AI-Powered Marketing: AI agents will revolutionize campaigns and customer interactions.
- Experiential Content Boom: Mixed Reality, immersive tech, and smartphones are transforming engagement.
- Data Privacy & Clean Rooms: A privacy-centric approach is reshaping digital marketing.
- Retail Media & Omnichannel Expansion: E-commerce continues to evolve with data-driven strategies.
- Quick Commerce Growth: The rapid rise of quick commerce is redefining online shopping.
- Generative AI & SEO Evolution: AI-driven search and content strategies are disrupting traditional SEO.
- AI-Driven Brand Storytelling: AI influencers and action-oriented campaigns are gaining prominence.
- Chief Prompt Officers on the Rise: AI-powered content creation is giving India’s marketers a global edge.
- CTV & Hyper-Personalization: Connected TV (CTV) is seeing mass adoption, pushing programmatic advertising.
- Integrated Measurement Frameworks: AI, data privacy, and market fragmentation are driving measurement innovations.
As India’s advertising industry continues to expand, AI, data privacy, and omnichannel strategies are set to dominate the landscape. With digital and TV leading ad spend, and new-age formats like CTV, AI-driven retail media, and immersive content gaining traction, 2025 is poised to be a transformative year for the sector.
