India AdEx hits ₹1.74 lakh crore by 2026 as quick-commerce reshapes agency growth
India’s ad market is expanding, but the mix is changing faster
India AdEx hits ₹1.74 lakh crore by 2026, according to recent industry forecasts that point to a sharp acceleration in digital-first budgets.
The story isn’t just overall growth. It’s the redefinition of what counts as advertising and which platforms are now “core” to media planning.
The “expanded AdEx” lens is making digital look bigger
Recent PMAR reporting indicates the market was estimated at ₹1,55,105 crore in 2025 under an expanded definition that explicitly includes quick-commerce and MSME digital spends.
Under this expanded view, digital is already pegged at 60% of the market, while traditional media accounts for 40%—a milestone that changes how brands structure budgets and measure ROI.
Digital share is projected to reach 64% by 2026
In the same reporting cycle, digital’s share is projected to climb further, reaching 64% by 2026—driven by retail media behavior, connected formats, and incremental digital outlay from MSMEs.
This is one reason agencies are increasingly being judged on performance proof, attribution confidence, and platform-native execution—not only creative output.
Quick-commerce ad spend is becoming a mainline budget
Quick-commerce advertising is now being forecast as one of the fastest-growing digital engines.
Recent estimates put quick-commerce ad spending rising from roughly ₹4,000 crore to about ₹6,000 crore in 2026, a jump that signals how quickly platforms like Blinkit, Zepto, and Swiggy Instamart are becoming “always-on” conversion environments for FMCG and daily-need categories.
MSME digital spend is a second growth engine agencies can’t ignore
Alongside quick-commerce, MSME digital spending is also projected to expand materially.
Recent reporting notes MSME digital spend at ₹35,814 crore, with projections rising to ₹42,976 crore—creating a meaningful layer of incremental digital AdEx that is more performance-led and outcome-driven in nature.
What this means for agencies: planning shifts from “media mix” to “commerce paths”
As quick-commerce and retail-led formats expand, agencies are being pulled into new requirements that sit between media and commerce operations.
Key shifts agencies are preparing for:
- Hyper-local and time-slot planning built around store-level availability and intent windows
- Retail media creative variants that match category browsing behavior and app-native placements
- Measurement upgrades to handle fragmented journeys across apps, marketplaces, and on-platform conversions
GroupM’s TYNY 2025 set the stage for the digital-heavy trajectory
Earlier reports also showed the market momentum building.
GroupM’s TYNY 2025 forecast projected the Indian advertising market at ₹1,64,137 crore for 2025, adding an incremental ₹10,730 crore—highlighting digital-led growth as the main driver.
Final takeaway
India AdEx hits ₹1.74 lakh crore by 2026, but the bigger signal is structural: digital is gaining share, quick-commerce is moving from “test” to “mandatory,” and MSME digital is widening the performance economy.
If your brand needs a Q-commerce or retail-media-ready plan—right from strategy to execution and measurement—Digilogy can help build and run the media system around these fast-changing formats, without overpromising and with clear reporting.
