India’s advertising market has recently moved closer to the ₹1.8 lakh crore mark, driven largely by rapid growth in digital channels. According to recent reports, digital media continues to reshape advertising spend patterns, with retail media, social platforms, and online video outperforming traditional formats.
Key Developments
India’s total advertising expenditure is projected to approach ₹1.8 lakh crore by year-end, reflecting steady growth despite broader macroeconomic challenges. Digital channels are the primary contributors to this expansion.
Retail media has emerged as the fastest-growing segment within digital advertising. E-commerce platforms and large marketplaces are attracting increased brand budgets due to their ability to link ads directly to purchases.
Digital media has also surpassed television to become the largest advertising segment. Growth has been supported by higher smartphone penetration, improved internet access, and increased consumption of short-form and vernacular content.
While traditional media such as television and print continue to play a role, their growth has slowed. Advertisers are increasingly reallocating budgets toward performance-driven digital formats.
Industry & Expert Context
Industry forecasts from global and domestic media analysts highlight digital advertising as the core engine of India’s ad market. Reports from WPP, Pitch Madison, Ipsos, and other research firms broadly confirm this trajectory, despite variations in methodology.
Social media remains the largest digital ad format by spend, followed closely by online video. Together, these formats account for a significant share of overall digital expenditure.
Experts point to retail media networks as a structural shift rather than a short-term trend. Brands value the combination of audience data, closed-loop measurement, and proximity to purchase decisions.
This shift mirrors global advertising trends, where data-rich digital environments are gaining preference over reach-only channels.
Why This Matters
For advertisers, rising digital ad spend reflects changing consumer behaviour. Audiences are spending more time online, especially on mobile devices, making digital channels more effective for engagement and conversion.
Businesses benefit from improved targeting, measurable outcomes, and flexible budgeting. Smaller brands can compete more efficiently through performance-based digital campaigns.
For consumers, this shift means more personalised advertising experiences across platforms such as social media, video streaming, and e-commerce apps.
At a market level, digital growth is reshaping how advertising value is created and measured in India.
What Happens Next
According to recent reports, India’s advertising market is expected to continue expanding beyond the ₹1.8 lakh crore level in the near term. Digital formats are likely to maintain double-digit growth rates.
Retail media, short-form video, and social commerce are expected to attract incremental investment. Measurement, attribution, and privacy-compliant data usage will become increasingly important.
Advertisers are also expected to focus on efficiency as economic conditions remain mixed, favouring channels that demonstrate clear return on investment.
Final Takeaway
India’s digital ad spend is no longer a supporting pillar but the primary driver of advertising growth. As digital formats continue to outperform traditional media, advertisers that adapt to data-led, performance-focused strategies will be better positioned for sustained impact.
Digilogy tracks these industry developments closely to understand how shifting media investments are shaping India’s digital marketing ecosystem.
