As per the 9th edition of Dentsu India’s flagship annual report- ‘dentsu Digital Advertising Report 2025’ which has taken a refreshing turn from chasing the future to mastering the power of NOW,
the Indian advertising industry grew by 6.3% in the last year, reaching a market size of Rs 1,01,084 crore by the end of 2024.
Of this AdEx growth, it was the digital advertising sector which witnessed a growth of 21.1%, closing 2024 at a market size of Rs 49,251 crore. In fact, by the end of 2024, digital media accounted for the largest share of advertising spend at 49%, followed by television at 28% and print at 17%.
That said, the report now projects Indian AdEx to grow at a Compounded Annual Rate (CAGR) of 6.87% to reach Rs 1,15,460 crore by 2026. In the same, it is expected that digital media will once again overtake traditional mediums by accounting for 61% of total adspends, growing at a CAGR of 19.09% in 2026.
As per dentsu Digital Advertising Report 2025, India’s AdEx growth was primarily driven by the general and assembly elections, which triggered a significant surge in ad spending in 2024 and looking ahead, the same is poised for modest growth, with major sporting events such as IPL 2025, the ICC Champions Trophy, and the Asia Cup 2025, along with other cricketing events, expected to be the key growth drivers of 2025.
Themed ‘Looking Through the Kaleidoscope,’ this year’s report by dentsu also explores the convergence of technology, creativity, and consumer experience- the forces shaping India’s digital-first revolution and highlights a seismic shift, underscoring one undeniable truth: ‘brands must rethink, rewire, and reimagine their strategies to stay ahead’.
In terms of 2025, the Indian advertising industry, as per the report, is projected to grow at 6.5%, reaching a market size of Rs 1,07,664 crore in 2025 and further accelerate by 7.2% in 2026 to drive the market size to Rs 1,15,460 crore by 2026 year-end.
“Digital media continues to lead the transformation with a CAGR of 19.09%, reflecting significant investments in online platforms. Key growth drivers include increased spending on reality shows, sports content across TV and OTT platforms, and large-format print advertising. The second half of 2024 laid a strong foundation for this growth, presenting pivotal opportunities for brands to engage with their audiences through diverse channels and innovative content strategies. This trajectory highlights the industry’s adaptability and focus on capitalising on emerging consumer trends,” the report states.
Furthermore it also highlights, “Key sectors such as e-commerce, automotive, BFSI, FMCG, and retail continue to dominate both digital and traditional media. The scale of offers and promotions across retail media, e-commerce, and D2C platforms is expected to be substantial, driving significant consumer engagement. Furthermore, product launches will play a pivotal role in encouraging consumer trials, contributing to a rise in overall ad spending. A notable trend is the strong surge in rural consumption, outpacing urban areas, particularly in the automotive and FMCG segments. This shift highlights the growing importance of rural markets in shaping advertising strategies and driving industry growth across diverse categories.”
Additionally, the ‘dentsu Digital Advertising Report 2025’ also identifies three critical forces reshaping the advertising landscape:
- Retail Media’s Meteoric Rise: E-commerce is no longer just transactional; it’s a full-funnel marketing ecosystem. Brands are leveraging hyper-personalized experiences, data-driven engagement, and closed-loop measurement to maximize impact.
- The Hybrid Marketing Revolution: The traditional online-offline divide is vanishing. Integrated, omnichannel strategies are redefining consumer interactions, blending digital precision with physical-world impact.
- AI-Driven Personalization at Scale: The age of one-size-fits-all marketing is over. Brands that master AI-powered, real-time consumer engagement will dominate the next era of advertising.
Moving beyond trends, the ‘dentsu Digital Advertising Report 2025’ also delivers sharp, data-backed insights to help brands navigate India’s digital-first future:
- Regional content and hyperlocal storytelling are driving deeper audience connections.
- Influencer-led, community-first marketing is reshaping brand engagement.
- User-generated content is emerging as a trust-building powerhouse.
- Data-driven decision-making is no longer optional — it’s imperative.
To access the full report, please click here.
Reflecting on the industry’s evolution, Harsha Razdan, CEO, South Asia, dentsu, said, “The future isn’t a distant concept—it’s built in real-time, in the decisions we make today. The 2025 report is not just an analysis of industry trends; it’s a call to action. The brands that will lead tomorrow are the ones that see through the noise, connect the dots, and act before the world catches up. This report isn’t just about understanding the market—it’s about mastering it.”
To this, Narayan Devanathan, President and Chief Strategy Officer, South Asia, dentsu, added, “Looking Through the Kaleidoscope’ is an invitation for marketers to go beyond the obvious. Creativity, technology, and media are no longer distinct silos—they are converging to shape consumer experiences like never before. The report equips brands with the insights, foresight, and strategy they need to build deeper, more meaningful connections in this new era.”
