India’s advertising industry to reach Rs 1.3 lakh crore this year: report

India’s advertising industry continued to demonstrate steady growth in 2025 at 8.3% to reach Rs 1,21,339 crore, macroeconomic uncertainty notwithstanding.

According to the Dentsu Digital Advertising Report 2026, the country’s advertising expenditure (AdEx) is expected to grow at a CAGR of 7.41% this year to reach Rs 1,30,416 crore. It is expected to reach Rs 1,40,001 crore by the end of CY27.

Digital advertising continues to lead the industry’s growth at a significant 19% in 2025 to reach Rs 71,621 crore, accounting for 59% of the country’s total ad spending. The momentum for digital is expected to continue through 2027, growing at 17% to reach a projected Rs 98,034 crore, accounting for 70% of the country’s AdEx.

Digital advertising growth

Social and online video are at the forefront of digital advertising growth, while retail media has also proven to be a major disruptor. E-retail ad spending grew by over 55% in 2025 to Rs 17,601 crore, making it the fastest growing digital channel.

The report notes that traditional media has continued to retain scale but is steadily losing share as advertisers shift budgets toward digital-first, performance-led channels.

Television holds the second highest share at 21% in India’s AdEx, and is the largest of the traditional channels. AdEx on television reached Rs 25,964 crore last year, on the back of live sports, high-impact entertainment and regional programming.

Print advertising

Print commanded a 14% share (Rs 16,594 crore), out-of-home advertising had 4% (Rs 4,724 crore), while radio and cinema held 1% each at Rs 1,501 crore and Rs 935 crore respectively.

According to dentsu’s analysis, the media mix in India has seen a sharp shift over the last decade, with digital advertising’s share rising from a mere 12% in 2016 to reach 59% last year.

Among traditional channels, out of home advertising is the only medium projected to grow, expanding at a CAGR of 3% through 2027 on the back of digital OOH expansion and enhanced urban infrastructure. Television’s share is expected to drop to 15% and print to 10% by 2027.

The largest ad spending category in 2025 was FMCG, accounting for 30% of total ad spending at Rs 36,084 crore. E-commerce was at number two, with an 18% share (Rs 22,132 crore) and auto was the third largest contributor at 7% (Rs 7,821 crore).

Speaking at the unveiling of the report, Harsha Razdan, CEO South Asia for dentsu, observed that digital advertising, which was a peripheral conversation a decade ago, has now become central to business, media and communication strategies. “Growth is no longer being driven by scale. Media is no longer just about reach and advertising is not just about delivering messages. Creativity today must focus on solving real problems rather than amplifying messages,” said Razdan.

The next decade will shape the way media, culture, technology and commerce converge to create a more immersive landscape.

Big picture

·       Social media commands the largest share of digital ad spending at 29% – Rs 21,057 crore

·       Online video commands 28% – Rs 20,004 crore

·       E-retail advertising grew the fastest at 55.86% to reach Rs 17,601 crore