Mumbai: The Indian advertising industry grew by 6.3% in the last year, reaching a market size of Rs. 1,01,084 crore by the end of 2024. By 2026, it is projected to grow at a compounded annual rate (CAGR) of 6.87%, reaching Rs 1,15,460 crore. The digital advertising sector witnessed a growth of 21.1%, closing 2024 at a market size of Rs 49,251 crore. It is expected to reach Rs 69,856 crore by 2026, with a CAGR of 19.09%.
By the end of 2024, digital media accounted for the largest share of advertising spend at 49%, followed by television at 28% and print at 17%. By 2026, digital media is projected to contribute 61% of India’s total advertising spend. The telecom sector leads the way, allocating 66% of its media budget to digital, with e-commerce, pharmaceuticals, and FMCG segments following closely behind.
Social media and online video lead digital media spending, with social media contributing 29% (Rs 14,480 crore) and online video close behind at 28% (Rs 13,756 crore). Ad spends on e-retail platforms contribute to 22.93% of all digital media spends. The FMCG and e-commerce sectors are the largest contributors to India’s digital media industry. Within digital media, FMCG directs 44% of its budget to online video, while e-commerce prioritises paid search (39%) and social media (31%).
Dentsu India has launched the ninth edition of its flagship annual report, the ‘dentsu Digital Advertising Report 2025’ – a definitive deep dive into India’s evolving advertising ecosystem.
Themed ‘Looking Through the Kaleidoscope,’ this year’s report shifts the focus from chasing the future to mastering the power of NOW. Instead of speculating on what’s next, ‘dentsu Digital Advertising Report 2025’ explores the convergence of technology, creativity, and consumer experience – the forces shaping India’s digital-first revolution.
Looking ahead, the Indian ad landscape is poised for modest growth, with major sporting events such as IPL 2025, the ICC Champions Trophy, and the Asia Cup 2025, along with other cricketing events, expected to be key growth drivers this year. These events will offer significant opportunities for brands to engage with diverse audiences, ensuring the industry’s continued upward momentum.
The Indian advertising industry is projected to grow at 6.5%, reaching a market size of Rs 1,07,664 crore in 2025. Growth is projected to accelerate in 2026, with the rate increasing to 7.2%, driving the market size to Rs 1,15,460 crore by year-end. Digital media continues to lead the transformation with a CAGR of 19.09%, reflecting significant investments in online platforms. Key growth drivers include increased spending on reality shows, sports content across TV and OTT platforms, and large-format print advertising.
The second half of 2024 laid a strong foundation for this growth, presenting pivotal opportunities for brands to engage with their audiences through diverse channels and innovative content strategies. This trajectory highlights the industry’s adaptability and focus on capitalising on emerging consumer trends.
Key sectors such as e-commerce, automotive, BFSI, FMCG, and retail continue to dominate both digital and traditional media. The scale of offers and promotions across retail media, e-commerce, and D2C platforms is expected to be substantial, driving significant consumer engagement. Furthermore, product launches will play a pivotal role in encouraging consumer trials, contributing to a rise in overall ad spending. A notable trend is the strong surge in rural consumption, outpacing urban areas, particularly in the automotive and FMCG segments.
This shift highlights the growing importance of rural markets in shaping advertising strategies and driving industry growth across diverse categories.
The digital landscape isn’t just changing – it’s in perpetual motion, powered by real-time advances in data, technology, and shifting consumer behaviour. As AI, immersive experiences, decentralised technologies, and hyper-personalisation evolve, they converge to ignite growth, disruption, and transformation. The digital world is no longer a bridge to the future; it is the future unfolding in real time. In this dynamic arena, industries are being redefined, and opportunities are being unlocked at an unprecedented pace. To thrive, we must embrace the now, leveraging the momentum of today’s innovations to stay ahead in a constantly evolving ecosystem.
The next chapter of customer experience is being shaped by the fusion of generative AI and human creativity, transforming how brands connect with their audiences. Generative AI speeds up content creation across text, visuals, and music, automating repetitive tasks and freeing up creators to craft richer, more personalized stories that truly resonate. However, as AI-generated content becomes widespread, maintaining authenticity and emotional depth is vital. While AI delivers hyper-personalised content with unmatched speed, human creativity ensures cultural relevance and emotional impact. Brands that master the balance between AI efficiency and human insight will foster deeper, more meaningful connections.
In India’s fast-changing retail media landscape, a new era of customer engagement is unfolding, powered by real-time shopping data. Retail media enables regional businesses to compete with larger players by tailoring campaigns to individual preferences. This shift is helping brands create more personalised, impactful, and purpose-driven relationships with their consumers.
