Digital advertising has accounted for 63% of total advertising spend in India’s media and entertainment sector in 2025, reinforcing its dominance over traditional media, according to the FICCI–EY Report 2026.
The segment has grown 26% year-on-year to reach Rs 947 billion, driven by increased investments from e-commerce platforms, SMEs, and performance-driven campaigns. E-commerce and point-of-sale advertising alone have surged 50% to Rs 220 billion, highlighting the growing importance of commerce-linked media.
Search and social media have continued to dominate, contributing 64% of digital ad revenues, while Connected TV and OTT platforms have seen significant growth due to higher engagement and premium audience targeting.
The report has also noted a structural shift in how advertising is being bought and sold. By 2028, over 75% of digital ad inventory (excluding premium properties) is expected to be traded programmatically, translating to over Rs 950 billion in ad spend managed through automated platforms.
This transition is being driven by the demand for better attribution, real-time optimisation, and performance measurement. Advertisers are increasingly moving away from traditional reach-based metrics towards outcome-driven strategies tied to conversions and commerce.
Additionally, Connected TV advertising has grown 42% to Rs 99 billion in 2025, further indicating a shift towards high-impact, targeted digital environments.
