India’s digital advertising industry has witnessed robust growth of 17% in 2024, taking the total digital ad spends to Rs 700 billion, according to the FICCI-EY report 2025 on Media and Entertainment (M&E). This growth was fuelled by an increase in digital’s share across several categories, with small and medium enterprises (SMEs) and long-tail advertisers playing a significant role.
Between 800,000 and 1.2 million SMEs collectively spent Rs 258 billion on digital platforms, primarily focussing on performance advertising through search engines, social media platforms, and e-commerce channels.
E-commerce advertising surged by 50%
A key highlight was the massive surge in e-commerce advertising, which grew by 50% to Rs 147 billion, now constituting 21% of total digital ad spends, up from 16% in 2023. Brands increasingly leveraged platforms like Amazon, Flipkart, JioMart, Nykaa, and Myntra to drive both brand awareness and direct sales. E-commerce advertising was recognised as being closest to the point of consideration and purchase.
If e-commerce’s contribution is excluded, digital advertising still recorded an 11% year-on-year growth.
Search, Social Media, and OTT Platforms dominate digital ad revenues
In 2024, search and social media platforms maintained their dominance in India’s digital advertising landscape, contributing a significant 69% of total digital ad revenues. These platforms continued to attract the lion’s share of spending as brands prioritised performance-driven campaigns.
Alongside them, sports, entertainment, and news-based OTT platforms collectively garnered 10% of the digital advertising pie. Leading this segment were Jio Cinema and Disney+ Hotstar, which continued to attract advertisers due to their extensive content libraries and high user engagement, especially around premium events like live sports.
Sectors such as Telecom, E-Commerce, Pharma, FMCG, BFSI, and Real Estate allocated more than 40% of their total media budgets to digital platforms, while almost all sectors crossed the 15% threshold. This investment confirmed the predictions made in the 2023 FICCI-EY marketer survey, where over 80% of CMOs had indicated plans to increase digital ad spends in 2024. The actual figures surpassed expectations, showing the structural shift towards digital-first marketing strategies.
Innovative and interactive ad formats redefined performance advertising
Throughout 2024, performance advertising remained the driving force behind digital ad growth, but with a noticeable shift towards innovation in ad formats. Advertisers moved beyond the simple “click to buy” functionality to embrace more interactive features. Quizzes, polls, free trials, contests, and personalised offers became commonplace across major platforms, making digital ads more engaging and tailored to individual consumers.
WhatsApp emerged as a highly effective tool for business communication, particularly for retailers. The platform enabled catalog sharing, facilitated transactions, and allowed hyperlocal targeting, helping brands connect with consumers within their immediate geographic areas. Simultaneously, platforms introduced advanced tools for real-time analysis of competitor pricing, inventory levels, and discounting trends, further improving the efficiency and effectiveness of e-commerce advertising.
One of the most significant creative shifts during the year was the extent to which ad creatives became more customised. More campaigns than ever before were designed in multiple languages, enabling brands to better connect with India’s diverse linguistic population.
Contextual advertising, where ads aligned closely with the content being consumed, also gained notable traction. Artificial intelligence (AI) played a pivotal role in this transformation, as brands increasingly relied on AI-powered tools to customise creatives based on geography, audience demographics, and user preferences.
CTV advertising reached new heights
The Connected TV (CTV) advertising ecosystem recorded remarkable growth in 2024. CTV ad revenues touched an all-time high of Rs 29 billion, comprising 11% of total television advertising revenues. The primary driver of this surge was YouTube, which emerged as the leading CTV platform in the country.
Notably, cricket properties on CTV platforms achieved CPMs (cost per mille or cost per thousand impressions) that were 8-10 times higher than those of mobile platforms, highlighting the premium advertisers were willing to pay for CTV audiences. This marked a key turning point, positioning CTV as an indispensable medium for advertisers seeking to reach premium, engaged audiences.
Digital media is India’s largest M&E segment
For the first time in history, digital media surpassed television to become the largest segment of India’s Media & Entertainment sector. Digital media revenues grew to Rs 802 billion in 2024, cementing its status as the driving force behind the industry’s evolution. Digital now contributes a substantial 32% share to the overall M&E sector.
Advertising remained the dominant revenue stream within digital media, with subscriptions contributing only 13%. This skew was driven by India’s predominantly ad-supported digital ecosystem, led by tech giants such as Google and Meta, as well as the rapidly growing advertising revenue streams of e-commerce platforms.
Within digital media, search and social platforms alone accounted for Rs 488 billion, representing 61% of the total.
Video consumption’s upward trajectory
Video consumption remained at the heart of India’s digital engagement. The number of video viewers increased by 15 million, reaching 551 million users, which amounts to approximately 98% of active smartphone users. Looking ahead, this number is expected to rise further to approximately 625 million by 2027, as smartphone penetration continues to deepen across the country.
Time spent on both social media and video platforms grew by 18% during the year. YouTube further entrenched its dominance, accounting for 92% of all online video consumption, leaving premium platforms offering AVOD, freemium, and SVOD services with just 8% of the share. While mobile remained the preferred medium for video consumption, with 89% of YouTube viewership coming from smartphones, CTV usage increased to 9%, indicating a gradual shift in viewing habits towards larger screens.
Contrary to the video space, online audio streaming witnessed a decline in 2024. The total number of music streamers fell to 175 million, down from 185 million in 2023. This reduction was partly driven by the shutdown of platforms like Resso and Wynk, and the transition of Gaana and Hungama to entirely subscription-based models.
Additionally, several industry measures, including the limitation of free user features, contributed to discouraging free consumption, resulting in a decline in overall user numbers.
Social Media users touched 462 Million
India closed 2024 with 462 million active social media users, reflecting the country’s growing digital footprint. Mobile remained the primary device, with 78% of users accessing social media exclusively via mobile phones and another 15% using both mobile and desktop devices.
While many users subscribed to multiple platforms, daily usage remained selective. Despite this, social media penetration was deep, with 67.5% of India’s total internet user base actively using at least one social media platform by October 2024.
