Digital Ad Spend in India FY25 Nears Half of Total Market as Brands Shift to Social, Video, and Owned Media

Recently, digital ad spend in India FY25 reached a defining tipping point, with digital close to half of total advertising outlay. New estimates show marketers are reallocating budgets away from traditional-heavy plans toward social, video, and owned digital touchpoints such as websites, apps, and CRM—reshaping how brands build loyalty and measurable ROI.

Key Developments

Recent market estimates suggest India’s advertising industry crossed the ₹1 lakh crore mark in FY25, with digital now accounting for roughly 45–46% of total ad spend. This reflects a rapid share gain from FY20, when digital’s share was notably lower.

The same outlook frames the shift as structural, not seasonal. Digital is expected to continue outpacing traditional formats, supported by better targeting, measurable outcomes, and consumer time spent moving to mobile-first environments.

Channel mix within digital is also evolving. Social media is increasingly powered by short-form video and creator-led formats, while streaming-led viewing continues to expand the case for video-centric planning beyond the feed.

At the same time, brands are pushing more investment into “owned media” rather than relying only on paid platforms. That includes strengthening websites for conversion, building apps for retention, and using CRM systems for personalisation through email, SMS, and messaging-based engagement journeys.

Loyalty and personalisation are becoming central to this owned-media push. Rather than treating CRM as only a post-purchase tool, brands are using it to influence repeat purchase, category expansion, and lifetime value through segmented offers and consistent communication.

Industry & Expert Context

The broader backdrop for digital ad spend in India FY25 is India’s mobile-first consumer behaviour. As discovery and decision-making shift to feeds, video, and messaging, brands are rebuilding their media plans around what audiences actually use daily.

Several industry trackers also highlight that advertising growth is happening even amid macro uncertainty. The key change is where the incremental rupee goes: more toward measurable digital channels, less toward legacy-heavy allocation.

This shift is visible across major spending sectors such as FMCG, automobiles, and e-commerce, which typically influence overall market direction because of their scale and frequency of campaigns.

A second trend running alongside paid digital growth is the “platform vs property” balance. Brands increasingly want to reduce dependence on rented attention by improving what they control: landing pages, first-party data capture, loyalty programs, and customer experience flows.

This is also where technology stacks matter. Many large brands are aligning ERP, commerce, and CRM systems to enable real-time inventory visibility, audience segmentation, and personalised journeys—so spend converts into repeatable outcomes instead of one-time spikes.

Why This Matters

For business leaders, digital ad spend in India FY25 nearing half of the market signals that digital is now a primary budget line—not an add-on. Planning still needs brand-building, but execution is increasingly expected to be measurable.

For marketing teams, the implication is operational: creative has to be video-native, distribution has to be audience-led, and measurement needs to connect spend to conversion and retention, not only impressions.

For consumers, the shift means more personalised experiences—more relevant offers, faster discovery, and smoother purchase journeys. But it also raises the bar for privacy-safe data handling and responsible frequency control.

For Indian brands, one strategic question is how much value is retained domestically. A large portion of spend flows to global platforms, making owned channels and first-party relationships more important for long-term resilience.

What Happens Next

The next phase of digital ad spend in India FY25 momentum will likely be defined by two moves: deeper investment into video and creator ecosystems, and stronger integration of CRM-driven retention with paid acquisition.

Expect more emphasis on:

• Full-funnel planning that connects social/video discovery to conversion-ready landing pages
  
  
• Loyalty-led retention playbooks that reduce acquisition dependence
  
  
• Better measurement, including lift studies and cleaner attribution models
  
  
• Experimentation with newer digital inventory such as connected TV and retail media
  
  

Brands that win will be those that build a consistent “owned + paid” engine: content that performs in feeds, experiences that convert on-site, and CRM journeys that retain.

Final Takeaway

The headline is clear: digital ad spend in India FY25 is now near half of the total market, reflecting a permanent shift in where audiences spend time and where brands see measurable returns. Digilogy tracks these changes as an industry observer—Contact Digilogy for complete Brands Shift.

FAQs

What does “digital ad spend in India FY25” mean?

It refers to the share of India’s total advertising spend in FY25 allocated to digital channels such as social, search, online video, and other internet-based media formats.

Why are brands investing more in owned digital media?

Owned channels like websites, apps, and CRM help brands control customer experience, improve retention, and reduce long-term dependence on paid platforms.

Which channels are driving digital growth the most?

Recent commentary points to social and video-led formats, including creator-driven content, alongside growing interest in connected TV and commerce-linked placements.