India’s digital ad market is expected to grow by 20.2% in 2025 to reach Rs 59,200 crore by the end of the year, according to the latest Dentsu Digital Advertising Report released on Monday. The digital ecosystem is expected to continue its rapid expansion at a compound annual growth rate (CAGR) of 19.09%, to reach Rs 69,856 crore by 2026, surpassing TV and print, and accounting for 61% of the total advertising spend in the country.
In 2024, India’s advertising industry recorded a 6.3% growth to reach Rs 101,084 crore, despite macroeconomic headwinds. It is expected to reach Rs 107,664 crore this year and will cross Rs 115,000 crore in 2026, growing at a CAGR of 6.87%.
Growth in digital advertising outpaced all other media at 21.1% last year to reach a market size of Rs 49,251 crore in 2024. It currently accounts for 49% of the ad market, with social media dominating digital spends at Rs 14,480 crore (29%). TV and print accounted for 28% and 17% of the advertising pie, respectively.
The top 5 categories in terms of ad spending were FMCG (31% of the total), e-commerce (15%), consumer durables (7%), automobiles (6%), and government (5%).
The report outlines three key forces that are reshaping the advertising landscape. The first is e-commerce, which is no longer just transactional, emerging as a full-funnel marketing ecosystem. Second, there is a hybrid marketing revolution in the advertising space, blurring the divide between online and offline. AI-driven personalisation at scale is the third force behind the digital marketing surge, and advertisers will need to rapidly master AI-powered, real-time consumer engagement.
Despite the digital advertising sector’s growth trajectory, the report notes that India’s marketing landscape will continue to blend traditional and progressive media. Traditional media, such as TV, radio, and print, will continue to grow, although at a slower pace.