India’s advertising industry continues its stable expansion, closing 2025 at Rs 1,21,339 crore, with growth projected to reach Rs 1,40,001 crore by 2027 at a CAGR (Compound annual growth rate) of 7.41%. The market is increasingly shaped by stronger domestic demand, deeper participation in digital commerce, and policy led accelerators such as MSME digitalisation and the Make in India initiative. Traditional media retains scale, yet its share continues to decline as audiences and brands shift toward more measurable, digital-first environments.
Digital Media remains the industry’s primary growth engine, rising 19% from 2024-25 to reach Rs 71,621 crore and projected to grow touching Rs 98,034 crore by 2027 - equivalent to 70% of total advertising spends. Social and online video dominate this mix, while retail media is emerging as a major disruptor, with e-retail ad spends surging 55.86% in 2025 to Rs 17,601 crore.
Across verticals, FMCG, e-commerce, telecom and BFSI lead total and digital advertising spends. Digital-first sectors now concentrate heavily on video, social and search, while categories such as real estate and consumer durables maintain a stronger presence on television. The industry is converging toward a more data-driven, automated and commerce-integrated advertising ecosystem.
The next decade will redefine how media, technology, culture and commerce converge, creating a more immersive, adaptive and values-driven landscape. Retail media will become a core advertising pillar, enabling full-funnel storytelling powered by behavioural insight. Attention will increasingly guide measurement, while cultural influence shapes long-term relevance. India’s creative economy will expand through women-led, regional and micro-community voices, reshaping narratives and elevating local culture globally. Purpose, transparency and emotional wellbeing will steer brand expectations, as value bundles, hybrid experiences, AI enabled personalisation and spatial interfaces create a future where media shifts from viewing to meaningful participation.
Growth of India’s Advertising Industry
The Indian advertising Industry grew by 8.3% in 2024 underscoring the sector’s steady momentum despite macro-economic uncertainties. This expansion was anchored by continued digital adoption, improving consumer sentiment, and stronger performance-led marketing across categories.
Growth in 2025 is expected to be driven by stronger consumption, broader digital commerce, and the expanding reach of India’s Digital Public Infrastructure (UPI/ONDC). Policy tailwinds including MSME digitalisation, Make in India–led manufacturing visibility, and sector pushes in mobility and housing will support momentum, while the election cycle should lift near-term advertising across mainstream and regional media.
With these drivers, the industry is expected to grow 7.5% in 2025, reaching Rs 1,30,416 crore by end of 2026.
The 2026 outlook is defined by expanding 5G access, maturing adtech capabilities, the advent of commerce-linked ad formats through UPI 2.0, and the mainstreaming of AI-enabled media optimisation. Public-sector communication around Smart Cities Mission milestones and state-level digital governance campaigns will further propel investment.
The industry is projected to reach Rs 1,40,001 crore by end-2027, growing YoY at 7.3%, led by e- commerce, telecom, BFSI, automotive, and real estate.
Media-Wise Advertising Spends
Digital media now contributes Rs 71,621 crore, commanding a dominant 59% share of the Indian advertising Industry. This milestone marks a structural shift in how brands engage audiences, reflecting both scale and sophistication in India’s digital ecosystem.
Television remains the largest traditional medium with a 21% share (Rs 25,964 crore), sustaining its relevance through live sports, high-impact entertainment and regional programming. Print follows with 14% (Rs 16,594 crore), continuing to deliver trust-led visibility in key markets and categories.
The industry’s media mix between digital and traditional media has transformed dramatically from 12:88 in 2016 to 59:41 today, signalling a systemic and long-term rebalancing of advertising strategies and priorities.
Driven by a mobile-first internet ecosystem, performance-led measurability, Digital Public Infrastructure, AI-powered optimisation, and the rise of regional and short video content, digital media has emerged as the cornerstone of India’s advertising landscape.
India’s advertising landscape is witnessing a paradigm shift as retail media emerges as the fastest-growing segment. By converging commerce and media within unified ecosystems, these platforms are solving advertising’s oldest challenge—connecting investment to measurable outcomes through full-funnel advertising solutions leveraging trillions of shopping and streaming signals that eliminate traditional measurement gaps.
The Changing Media Mix
The share of advertising spends on digital media has risen sharply from 12% in 2016 to 59% by end-2025, reflecting sustained adoption of digital-first marketing approaches. This trajectory is expected to continue, with digital projected to command 70% of total advertising spends by end-2027, driven by expanding digital infrastructure, deeper commerce integration and measurable performance led outcomes.
Among traditional formats, OOH emerges as the only segment expected to grow over the forecast period. The medium is projected to expand at a 3% CAGR, reaching a 4% share by 2027, supported by the scaling of digital OOH networks, modernised transit infrastructure and growing demand for high-impact urban visibility.
Conversely, television’s share is expected to decline from 21% today to 15% by 2027, while print is projected to drop from 14% to 10% over the same period, reflecting structural shifts in content consumption and advertiser preference.
Media Allotment by Verticals
Telecom, e-commerce, pharmaceuticals, and FMCG now allocate the largest share of their media budgets to digital, reflecting the need for precise targeting, measurable outcomes and always-on consumer engagement. These sectors rely heavily on performance-led campaigns, regional digital content and commerce-linked journeys, making digital their dominant investment channel.
In contrast, television remains a key medium for high-impact visibility in categories such as real estate (42%), consumer durables (31%) and FMCG (29%), where the combination of reach, credibility and demonstrative storytelling continues to influence purchase decisions.
Print media retains strong relevance among government & social organisations (65%), education (53%), retail (49%) and media & entertainment (46%), driven by the need for trust, localised communication and regulatory or public-information messaging.
FMCG continues to lead the Indian advertising industry, contributing 30% (Rs 36,084 crore) of total spends, driven by high-frequency categories and sustained competition across staples and personal care. E-commerce follows at 18% (Rs 22,132 crore), reflecting its growing scale and aggressive customer-acquisition strategies, while the automotive segment contributes 7%, supported by renewed demand across both EV and ICE portfolios.
In 2025, the strongest growth in advertising emerged from e-commerce, which expanded by 40.8% over the previous year. The telecom sector recorded 24.2% growth, driven by 5G-enabled service diversification and content-led bundling. BFSI, automotive and real estate also demonstrated steady increases as consumer sentiment and credit availability improved.
Growth of India’s Digital Advertising Industry
The Indian Digital Media Industry grew by 19% from 2024-25, closing 2025 at Rs 71,621 crore, and firmly establishing digital as the centre of gravity for brand investment. Its rapid expansion reflects both the scale of India’s connected population and the increasing sophistication of digital commerce and content ecosystems.
Digital media will remain India’s top ad channel, backed by policy and infrastructure. DPI, UPI and ONDC growth along with MSME digitalisation and broadband programmes are deepening participation and enabling more measurable ad journeys. These forces are projected to sustain a 18.6% growth rate through 2026, taking digital media to Rs 84,977 crore by year-end.
The surge is driven by mobile-first use, short-form video, creator-led commerce, and AI-led adtech improving targeting and attribution. Regional content, performance marketing, and embedded digital payments are further expanding digital’s influence across sectors.
Looking ahead, digital media is expected to grow at a CAGR of 17%, reaching Rs 98,034 crore by 2027, and contributing 70% of total Indian Advertising spends, marking a definitive shift to a digital-first communication economy.
Digital Ad Spends Across Formats
Social media commands the largest share of digital ad spends at 29% (Rs 21,057 crore), driven by high user engagement, creator-led ecosystems and the expanding role of social commerce. Online video follows closely with 28% (Rs 20,004 crore), supported by the explosive growth of short-form content, OTT platforms and mobile-first video consumption.
Paid search contributes 23% (Rs 16,581 crore), reflecting its continued importance in intent-led marketing and conversion-driven campaigns, while display banners account for 16%, anchored in retargeting and broad-reach visibility.
Spend patterns reflect a strong preference for formats that combine scale with measurable performance. Social and video dominate due to their immersive, high-engagement environments, while search retains a significant share for its proven efficiency in capturing bottom-funnel demand and driving commerce outcomes.
Rise of E-retail platform Advertising
By the end of 2025, advertising spends on e-retail platforms reached Rs 17,601 crore, contributing 24.58% to total digital media spends. This represents a remarkable 55.86% growth over 2024, driven by expanding marketplace inventories, richer first-party data environments, and rising investments in performance-led commerce advertising across categories.
E-retail platforms are redefining digital advertising by transforming from transaction venues into comprehensive full-funnel advertising ecosystems. Unlike traditional digital channels that operate in silos—video, search, social, and shopping managed separately—retail media unifies these touchpoints within closed-loop environments. This integration enables advertisers to reach consumers across awareness, consideration, and conversion stages while measuring downstream impact with unprecedented precision. The ‘Full-funnel’ advantage is backed by three pillars:
(a) Real-time first-party consumer signals based on shopping and streaming to inform campaign strategies and drive precision in targeting.
(b) Comprehensive media suite covering owned Video and audio streaming inventory (e.g. Amazon Prime video, Amazon MX Player), social amplification (e.g. Amazon Influencer program), open internet (programmatic access) and e-marketplace shopping touchpoints.
and (c) Holistic measurement based on brand health metrics, mid funnel measures and conversions (online and offline).
Digital Advertising Spends by Industry Verticals
The FMCG segment continues to dominate India’s digital media landscape, contributing 32% (Rs 23,243 crore), driven by high-frequency consumption categories and always-on digital engagement. E-commerce follows with 22% (Rs 15,836 crore), reflecting its scale, aggressive acquisition cycles and deep integration of performance marketing. Other growth-driving sectors include consumer durables, automotive and pharmaceuticals, all of which are accelerating digital adoption through targeted communication and richer product-discovery experiences.
In 2025, the e-commerce sector recorded the highest surge in digital media spends at 56%, fuelled by rapid category expansion, quick-commerce proliferation and intensified marketplace competition. This was followed by tourism (54%), education (50%) and automotive (48%), each benefiting from renewed consumer demand, improved affordability and digital-first service models.
Growth across these sectors is supported by rising mobile-first consumption, increased use of short-form video and creator ecosystems, and stronger performance-driven marketing. Government policies - such as digital enablement for MSMEs, incentives supporting India’s tourism missions, and accelerated EV adoption frameworks, have further stimulated sectoral visibility. Additionally, the expansion of UPI-led payments and ONDC-linked commerce infrastructure has enabled frictionless discovery-to-purchase pathways, encouraging brands to invest more deeply in measurable, full-funnel digital advertising.
This roadmap captures the structural shifts redefining India’s media and advertising ecosystem. Together, these ten trends map how media, culture, technology and commerce will converge to shape the next decade. The 10 trends that are defining India’s Media industry which will shape the next 10 years are:
1. Retail Media & Commerce driven Storytelling
Retail media will evolve into a full-funnel brand engine, combining first-party data, creativity and closed-loop measurement to guide consumers seamlessly from discovery to purchase within unified retail ecosystems.
2. Cultural & Demographic Creative Renaissance
Regional language audiences, women-led creators and voices from smaller towns will reshape creativity, pushing brands toward authenticity, local nuance and culturally rooted storytelling at scale.
3. Purpose-Driven & Values-Based Storytelling
Younger audiences expect brands to reflect their values. Purpose-led narratives must be backed by transparency, ethics, wellbeing and real commitments to earn trust and loyalty.
4. Subscription Fatigue & Value Re-Bundling
As subscription overload grows, consumers will favour bundled lifestyle ecosystems spanning content, services and connectivity, shifting power to telecom, device and platform-led aggregators.
5. Corporate Media Renaissance
Brands will build owned media ecosystems with continuous content, commerce and communities, operating beyond campaign cycles to drive long-term relevance and revenue.
6. Omnichannel Trust & Hybrid Brand Presence
Brands will function as media entities, creating always-on destinations that blend storytelling, commerce and trust across physical and digital touchpoints.
7. The Rise of Attention and Cultural Influence
Attention will replace impressions as the core media currency, measured through time, interaction and emotional engagement, with success defined by cultural impact and conversation.
8. AI-Driven Personalization & Emotionally Intelligent Media
AI will power adaptive, context-aware media experiences, combining human creativity with intelligent variation while respecting ethical boundaries and consumer trust.
9. AI-Governed Media Ecosystems & Technology Sovereignty
Autonomous AI systems, supported by India’s digital public infrastructure, will reshape media and commerce, treating data as owned intellectual property governed by transparency.
10. Immersive & Spatial Media Experiences
Spatial computing will turn stories into immersive environments, blending entertainment, learning and commerce through participatory, culturally sensitive experiences.
