Mumbai: India’s advertising industry has entered a new era, breaching the ₹1 lakh crore mark in fiscal 2024-25, driven predominantly by a sharp pivot toward digital media. According to a report by Crisil Ratings, the sector clocked a compound annual growth rate (CAGR) of 6–7% over the past five fiscals, with digital advertising now accounting for nearly half of the total ad spend.
Digital advertising’s meteoric rise — from just 24% of total ad spend in fiscal 2020 to 45–46% in 2024-25 — has fundamentally reshaped how brands engage with Indian consumers. Crisil expects this digital dominance to grow even stronger in the current fiscal, forecasting a 9–11% increase in digital ad expenditure, while traditional media stagnates.
“This signals an ongoing transformation in how India has been consuming content,” noted the report.
Traditional media, long the mainstay of India’s advertising ecosystem, has seen a steady erosion of market share. From commanding 65% of ad spend in fiscal 2020, its share declined to 46–47% last fiscal. Television and print, once unchallenged, are now grappling with structural shifts.
The television industry is bearing the brunt of a dual assault — broadcasters are seeing ad revenue slip as audiences flock to over-the-top (OTT) platforms, while distribution networks are losing ground to high-speed fibre-based services. Notably, the direct-to-home (DTH) segment alone lost over 10 million subscribers between December 2020 and 2024, according to Crisil.
Print media faces a similar challenge. Stagnant circulation, declining overall readership — down 500 basis points over the past five years — and rising preference for digital news apps have spurred advertisers to redirect budgets. “The shift is evident in the ad spend patterns of major consumer-facing sectors such as fast-moving consumer goods (FMCG), automobiles and e-commerce,” said Pushan Sharma, Director, Crisil Intelligence. “FMCG companies now allocate 55–60% of their ad budgets to digital, up from 30% in fiscal 2020.”
Industry observers view this as more than a cyclical trend. Brands are increasingly adopting digital-first strategies, lured by precise targeting, micro-market segmentation and cost efficiency. The creator economy, too, is playing a pivotal role — its high-engagement, relatable content is proving to be a more effective and measurable outreach tool.
Even traditional players are accelerating their digital transformation journeys, signaling that the shift in India’s advertising landscape is not just underway — it’s irreversible.
