Digital Captures 46% of India’s Total Ad Spend in FY25: What This Shift Really Means for Brands
India’s advertising landscape has officially crossed a defining milestone.
According to CRISIL, digital media now commands ~46% of India’s ₹1-lakh-crore+ ad market, overtaking several traditional channels and becoming the dominant driver of brand reach, performance, and measurable ROI.
This isn’t just a shift.
It’s a reset — one that permanently changes how Indian brands plan, spend, and scale.
The New Reality: Digital Isn’t an “Option” Anymore — It’s the Operating System
Over the last five years, marketers slowly shifted budgets online. But FY25 is the first year where the pivot becomes irreversible.
A nearly 50:50 split between digital and traditional signals that:
- brands are now performance-driven,
- CFOs want measurable ROI,
- and automation + AI are reshaping advertising faster than expected.
Digital is no longer where experiments happen — it’s where growth happens.
Key Insights From the FY25 Digital Ad Spend Surge
1. Performance Marketing is Eating the Budget
Brands are moving beyond visibility KPIs and investing in:
- AI-optimised campaigns (Meta Advantage+ / Google PMax)
- lower-funnel retargeting
- CRM-linked measurement
- sales-driven attribution
This shift alone accounts for ~60% of digital budget growth.
2. Short-Form Content Has Become India’s Primary Discovery Engine
Reels, Shorts, and Snackable content are pulling massive discovery numbers.
In categories like fashion, beauty, F&B, and D2C, 80%+ of first impressions now occur on mobile.
Consumers don’t “browse” anymore — they scroll, watch, and buy.
3. Retail Media is Exploding
E-commerce and quick-commerce platforms are now full-funnel ad engines:
- Amazon Ads
- Flipkart Ads
- Blinkit Ads
- Zepto Ads
Retail media alone grew 34% YoY.
4. Regional + Vernacular Content Drives Hyperlocal ROI
Brands targeting Tier-2/3 audiences are increasingly adopting:
- regional creators
- vernacular ads
- city-level segmentation
India’s internet is no longer “one audience.”
Why This Matters for Marketers
Digital’s dominance has one direct implication:
If your brand isn’t visible where the consumer scrolls, you don’t exist.
Every category — FMCG, real estate, BFSI, D2C, education, healthcare — is now competing for:
- attention
- trust
- conversion
- retention
And digital is the only channel offering all four.
How Brands Should Respond in 2025
- Build always-on digital presence
- Allocate 60–70% of budgets to measurable channels
- Invest in AI-powered ad optimisation
- Prioritise short-form video + creator collaborations
- Strengthen CRM, automation & remarketing flows
- Build fast, mobile-first landing pages
Brands that adapt early will compound faster.
Where Digilogy Fits In
If your brand wants to build a ROI-driven, always-on digital growth engine, Digilogy helps you:
- optimise paid ads
- build scroll-stopping content
- scale performance marketing
- activate regional audiences
- deploy AI-led campaigns
- improve lead quality & reduce CAC
