Paid Social Media Ad Spend Grows in India as Digital Budgets Accelerate in 2026
Recently, India’s advertising market has shown sustained momentum as brands increase digital investments, particularly in social media. While exact quarter-specific growth figures vary by report, industry data confirms that paid social media ad spend in India is expanding steadily as digital channels gain priority.
Key Developments
According to recent reports, India’s total advertising industry has crossed ₹1,00,000 crore, with digital media accounting for nearly half of overall ad spend. This marks a significant shift from earlier years dominated by traditional channels.
Social media has emerged as one of the strongest growth segments within digital advertising. Estimates indicate that social platforms now account for roughly 40–45% of digital ad budgets, supported by short-form video and creator-led content.
While some market commentary has referenced a 12% increase in paid social media ad spend for Q1 2026, publicly available industry reports do not confirm a specific quarter-only figure. Instead, data points consistently highlight broad-based growth across the year.
Brand-level spending patterns also vary. Companies such as Swiggy have reported sharp increases in advertising outlay, while several FMCG brands have moderated budgets to protect margins.
Industry & Expert Context
Industry bodies including Crisil Intelligence and FICCI-EY have highlighted a structural reallocation of advertising budgets toward digital channels. Over the past five years, digital advertising has nearly doubled its share of total spend.
Social media’s growth has been driven by high engagement formats, particularly video. Platforms such as YouTube now command an estimated 20–22% share of digital ad spend, supported by reach across both urban and rural audiences.
Faster internet penetration, affordable mobile data, and increased daily screen time have further strengthened social media’s role in brand communication.
Analysts also note that search advertising has seen relative share pressure as brand discovery increasingly shifts toward video-first and creator-led environments.
Why This Matters
For brands, rising paid social media ad spend in India reflects changing consumer behaviour rather than short-term experimentation. Social platforms now play a central role across awareness, engagement, and conversion stages.
Performance-driven formats allow advertisers to test creatives quickly, optimise budgets, and reach regional and vernacular audiences more efficiently.
For agencies and marketers, the shift places greater emphasis on creative quality, measurement, and platform-specific strategies rather than simple reach metrics.
What Happens Next
Looking ahead, paid social media ad spend in India is expected to remain a key growth driver within digital advertising. Video-led formats and creator partnerships are likely to attract a growing share of budgets.
As competition intensifies, advertisers may focus more on efficiency, first-party data usage, and measurable outcomes rather than scale alone.
Regulatory clarity and platform transparency are also expected to influence how brands plan and allocate social media investments.
Final Takeaway
Paid social media ad spend continues to grow in India as brands adapt to a digital-first audience and evolving media consumption patterns. While precise quarter-specific growth figures vary, the broader direction is clear.
Digilogy tracks these industry developments closely, analysing how shifts in digital and social advertising budgets shape performance strategies for Indian brands.
