India’s advertising market is projected to record 7.8% year-on-year growth in 2025 to take the advertising expenditure (AdEx) from Rs 1,272 billion in 2024 to Rs 1,371 billion in 2025, according to the latest report by IPG Mediabrands’ media intelligence unit MAGNA. Total ad revenue is expected to increase by Rs 99 billion this year. In 2026, the report forecasts a 7.7% growth to take the advertising industry to Rs 1,476 billion, making it one of the top 10 global markets.
While digital media is expected to grow by 12% to reach Rs 728 billion, traditional formats such as TV, radio and print will grow at a much slower 3.4% to reach Rs 643 billion. Digital advertising, with 51% share of the AdEx, also overtook traditional advertising in 2024.
While the first half of 2025 is expected to grow at 6%, H2 growth is pegged at 9%, though trade uncertainties may influence outcomes later in the year.
Overall, India’s economic outlook remains positive, with robust growth potential supported by a combination of domestic demand, government investment, and a thriving services sector. India is also poised to overtake Japan in 2025 as the world’s fourth largest economy, and is expected to surpass Germany by 2028 to claim the third spot.
Hema Malik, chief investment officer at IPG Mediabrands India expects that ad spending in 2025 will remain resilient, absorbing the post-election and post-T20 World Cup slowdown from 2024. During this year, MAGNA forecasts dynamic ad spending in segments like finance, media, pharma, technology, gaming and retail while categories like auto and electronics may lag.
“The trio of video, social and retail will once again lead the AdEx growth. Live sports, which were the only linear TV mainstays, have been upended with more people streaming sports content. Ad-supported streaming are experiencing rapid growth in access, consumption, and advertising sales, as nearly all streaming TV platforms offer more affordable ad-supported plans. Long-form video is growing at a blistering pace of over 25% and is 6% of the total video forecast, estimated to gain double digit share in the next three years,” remarks Malik.
Digital pure player formats valued at Rs 680 billion are the key growth drivers for the advertising economy, estimated to grow at over 11.4%. Social media is another key advertising format, which is expected to surpass television to become the largest advertising format.
Digital video is expected to grow at over 17% this year compared with linear TV spending, which is set to grow by just over 2.5%. Digital pure play formats and video jointly account for 80% of the total AdEx.
The report also observes that publishing will grow by over 3.5% to reach Rs 205 billion, with the digital version of the format expected to grow at twice the rate. Audio and experiential ad spending are 5% of the AdEx and will grow at 5.9% and 12.9% respectively.