MUMBAI: The Madison Report 2025 has noted that India’s digital advertising landscape is evolving at a rapid pace. In 2025, the expanding digital ecosystem will continue to reshape the industry in multiple ways. With increasing internet penetration and rising mobile usage, the sector will experience both opportunities and challenges, driving continuous innovation in digital advertising.
Connected TV (CTV) emerged as a game-changer in 2024 and will maintain its dominance in the coming year. India is witnessing sustained growth in CTV adoption, with projections estimating 50-60 million CTVs HHs by the end of 2025 and estimate ad revenue size of Rs. 2300-2500 crores by end of 2025. This shift marks a significant change in consumer viewing habits, as more audiences move away from traditional linear television, opening up new avenues for advertisers.
The Union Budget 2025 emphasises digital transformation, allocating Rs. 20,000 crore towards R&D and investing in AI excellence centres. These initiatives underscore India’s commitment to technological progress and are expected to significantly impact the advertising and marketing (A&M) sector. The growth in research and the emergence of AI driven solutions will enhance data analytics, and programmatic advertising, providing new opportunities for advertisers and brand marketers.
Influencer marketing is set to expand further in 2025. The rise in online shopping will drive increased advertising on e-commerce platforms as well such as Amazon, Flipkart, and niche marketplaces, fuelling further growth in the sector.
Last year, the Digital Adex growth slowed to 14%, a sharp decline from higher growth rates seen till 2022. While Digital will remain the primary driver of Adex, with its share increasing from 42% to 44%, its growth in 2025 is expected to be a moderate 17%. The era of exceptionally high growth rates in digital advertising is now behind us, and expansion is expected to be slower compared to previous years due to a higher base. With an estimated 17% growth, Digital Adex will experience the highest growth across mediums and is projected to reach Rs 53,000 crores in 2025, adding Rs 7,700 crores over 2024.
For a global perspective, WARC predicts that the Digital share of Adex will rise to a dominant 77%, whereas in India, we estimate it will reach 44%.
