Mumbai: The global advertising industry is on track to hit a historic milestone, with total ad spend projected to reach ~1% of global GDP by 2029, according to Bain & Company’s latest report, “Advertising in the Digital Age, in India and Around the World.” Currently valued at ~$1 trillion in 2024, the global market is expected to expand significantly, with digital advertising commanding 80–85% of the total spend.
India emerges as one of the fastest-growing digital advertising markets globally. Valued at $16–$18 billion in 2024, India’s ad market contributes ~0.4% to GDP and is projected to grow at 10–15% CAGR, reaching $17–$19 billion by 2029—about 0.5% of GDP. Digital advertising already accounts for 50–60% of total ad spends in India, with mobile, video, OTT adoption, and AI-led innovations driving this growth.
“India’s digital advertising market is at an inflection point,” said Prabhav Kashyap, Partner at Bain & Company. “The convergence of mobile-led consumption, the rapid rise of video formats, and the integration of AI into every stage of the advertising process is reshaping how brands connect with consumers. As audiences spread their attention across more devices and platforms, the leaders will be those who diversify beyond mega platforms, design content for each channel from the ground up, and harness AI and first-party data to deliver personalized, high-impact campaigns. Over the next five years, the ability to combine creativity, data, and technology will be the defining factor in who captures the most value.”
Key trends fueling India’s growth include:
- Mobile dominance: Smartphones account for nearly 70% of digital ad spend, 5–10 percentage points higher than the global average.
- Video-led formats: In-app video ads are expected to expand 6–8 percentage points from their current 35–40% share.
- OTT and CTV boom: India’s connected TV households surged from 20 million in 2022 to nearly 45 million in 2024, with brands leveraging contextual CTV ads to target premium users.
- SME & D2C impact: Their share of India’s digital ad spends is projected to rise from 37% in 2024 to over 40% by 2029, driven by e-commerce integration and performance marketing.
AI is emerging as a cornerstone of advertising strategies, enabling advanced consumer targeting, dynamic testing, automated media planning, cross-channel attribution, and ROI optimization. Leading adtech firms such as InMobi, AppLovin, The Trade Desk, and Moloco are already integrating AI/ML-backed tools for hyper-personalization, contextual advertising, and first-party data utilization.
Publishers too are reimagining ad experiences with loyalty-driven engagement and multi-source data platforms, while adtech players are consolidating to offer full-stack solutions.
“To unlock stronger ROI, brands and publishers need to work in closer sync. Compared to just a few years ago, we’re seeing the emergence of scaled adtech players (like InMobi and The Trade Desk) who are playing a pivotal role in driving more precise targeting and performance, maturing the ecosystem significantly and enabling brands to continuously sharpen their digital advertising strategies,” said Devika Mittal, Associate Partner at Bain & Company.
The report underscores that the winners in this rapidly transforming ecosystem will be those who combine intelligence-led targeting, cross-channel measurement, and value-added services to deliver superior consumer experiences and maximize returns.
