The Indian advertising industry grew by 6.3% in the last year, reaching a market size of INR 1,01,084 crore by the end of 2024. By 2026, it is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.87%, reaching INR 1,15,460 crore. The digital advertising sector witnessed a growth of 21.1%, closing 2024 at a market size of INR 49,251 crore. It is expected to reach INR 69,856 crore by 2026, with a CAGR of 19.09%.
In 2024, digital media accounted for the largest share of advertising spends 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 spends. 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% (INR 14,480 crore) and online video close behind at 28% (INR 13,756 crore). Advertising 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%).
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 personalised stories that truly resonate. However, as the use of AI-generated content becomes widespread, maintaining authenticity and emotional depth turns 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.
Chapter 1. The Indian Advertising Industry
The Indian advertising industry grew by 6.3% in the previous year, closing 2024 with a market size of INR 1,01,084 crore. This growth was primarily driven by the general and assembly elections, which triggered a significant surge in ad spending. Looking ahead, the Indian advertising 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 INR 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 INR 1,15,460 crore by the 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 towards 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.
Advertising spends on media in 2024
Digital media has emerged as the largest contributor to advertising spends, accounting for 49% (Rs 49,251 crore) of the Indian advertising industry. Television follows closely, contributing 28% (Rs 28,062 crore), while print media holds a share at 17% (Rs 17,529 crore). This shift underscores the growing dominance of digital platforms in shaping advertising strategies and capturing audience engagement.
Digital and Out-of-Home (OOH) advertising have led the charge in advertising spend growth this year, setting the pace for the industry. Television and print are also expected to see a boost, driven by reality shows and festive campaigns. As brands prioritise high-impact buys, engaging and innovative content will be key to capturing audience attention across platforms. Success will hinge on finding the right balance between reach and relevance, and those who strategically leverage these mediums will gain a competitive edge.
In recent years, the Out-of-Home (OOH) advertising segment has embraced new formats, such as digital displays, airport billboards, and Digital OOH (DOOH). OOH ad spend reached INR 3,800 crore in 2023, reflecting aggressive adoption by advertisers. Looking ahead, OOH is projected to grow at a CAGR of 10% through 2026, driven by various factors. The 2024 general and assembly elections sparked a surge in political advertisements, further boosting OOH’s momentum. DOOH remains a critical growth driver, with its vibrant, high-impact displays gaining popularity across markets. Destination DOOH and digital on-road displays are increasingly being integrated into media plans, highlighting the growing share of digital formats in OOH strategies.
Infrastructure development continues to unlock opportunities for transit and metro media, while the refurbishment and expansion of airports in key markets contribute to inventory growth. New infrastructure projects are fostering the expansion of OOH as an industry, with transit media emerging as a significant segment. Advertisers are increasingly adopting data-driven and technology-enhanced strategies, emphasising location-based planning and measurable outcomes in OOH campaigns. Key sectors such as Automobile, BFSI, FMCG, Real Estate, Retail, and Media & Entertainment have extensively leveraged OOH in early 2024, highlighting its relevance across diverse industries. This dynamic environment positions OOH as a vital component of the advertising mix, primed for sustained growth.
Digital and OOH are the only media segments with a positive growth outlook until 2026, reflecting the Indian advertising industry’s shift toward platforms offering greater engagement and flexibility. In contrast, traditional media—Television, Print, Radio, and Cinema—are projected to witness a decline over the same period.
Between 2023 and 2024, television’s share declined from 31% to 28% and is expected to drop further to 24% in 2025. Print media followed a similar trend, decreasing from 20% to 17% by the end of 2024, with projections suggesting a further decline to 15% by 2025. Radio, which maintained a steady share of 2% in 2024, is expected to decline to 1% by the end of 2025, reflecting the shifting dynamics of the advertising landscape.
These trends highlight the challenges traditional advertising channels face amid digital disruption and evolving audience habits. Structural changes demand innovative strategies, including digital integration and niche targeting, to regain relevance and adapt to the shifting media landscape.
Cinema’s performance remains highly variable, indicating that external factors play a significant role in its viability as an advertising medium. In 2024, it saw modest growth, likely driven by blockbuster releases and a post-pandemic resurgence in theatre attendance. However, a significant decline is expected in 2025, due to market-dependent factors such as inconsistent movie releases, increased competition from streaming platforms, and changing consumer behaviour. This volatility underscores the challenges cinema faces in maintaining consistent advertising value.
OOH continues to show consistent growth, although the pace has slightly slowed from 12% in 2024 to 10% in 2025. This reflects OOH’s successful adoption of new technologies and the rise in foot traffic as consumer behaviour rebounds post-pandemic, reinforcing its sustained relevance as an advertising channel.
Digital media remains the fastest-growing channel, though its growth has slightly slowed. This trend underscores the continued shift towards digital advertising, driven by its effectiveness, broad reach, and measurable impact. Brands are increasingly focusing on interactive and data-driven platforms to optimise audience engagement and campaign performance.
Media spends across industry verticals in 2024
The FMCG segment continues to dominate the Indian advertising space, contributing 31% (INR 31,467 crore), followed by e-commerce and quick commerce brands that capitalise on impulse buying. The e-commerce segment accounts for 15% (INR 15,509 crore), while the consumer durables category contributes 7% to the overall advertising industry. In 2024, the travel and transport sector saw the highest advertising expenditure growth, rising by 33.4% compared to 2023.
Chapter 2. The Indian Digital Advertising Industry
The Indian digital advertising industry closed 2024 with a market size of INR 49,251 crore, reflecting a growth rate of 21.1% compared to 2023. Digital media is expected to continue outpacing other advertising forms, driven by key factors such as social media, video platforms, and AI-driven ad placements. These elements are projected to contribute to a 20.2% growth in 2025, with the digital advertising market expected to reach INR 59,200 crore by the end of the year. This growth underscores the ongoing dominance and expansion of digital channels in the Indian advertising landscape.
Going forward, we expect digital media to grow at a Compounded Annual Growth Rate (CAGR) of 19.09%, reaching a market size of INR 69,856 crore by the end of 2026. By that time, digital media will contribute 61% of the total advertising spend in the Indian industry.
Spends on digital advertising formats in 2026(f)
Social media will hold the largest share of ad spends, contributing 29% (INR 14,480 crore) to the Indian digital media industry. This will be closely followed by online video, which accounts for 28% (INR 13,756 crore) of the ad spend. Paid search contributes 23% (INR 11,402 crore), while display banners make up 16% (INR 7,964 crore) of the digital advertising market in India.
Digital Media spends across industry verticals
The FMCG segment holds the largest share of 34% (Rs 16,606 crore) in the Indian digital media industry, with its digital media budget growing by 13% compared to 2023. The e-commerce category follows closely with a 21% contribution (INR 10,131 crore), while other key sectors, including consumer durables, pharmaceuticals, and automotive, also play significant roles in shaping the digital advertising landscape.
