The Indian advertising industry grew by 8.3% in 2025 to reach Rs 1,21,339 crore, according to the Dentsu Digital Advertising Report 2026. The market is projected to expand to Rs 1,40,001 crore by 2027, reflecting a compound annual growth rate (CAGR) of 7.41% over the period.
Digital advertising continues to be the primary growth engine for the industry. Digital ad spends rose 19% year-on-year in 2025 to Rs 71,621 crore, accounting for 59% of total advertising expenditure. By 2027, digital advertising is projected to reach Rs 98,034 crore, contributing nearly 70% of overall ad spends in India.
This growth is being driven by increased investments in social media, online video and performance-led formats, along with the rapid rise of retail media. Advertising spends on e-retail platforms surged 55.86% in 2025 to Rs 17,601 crore, making retail media one of the fastest-growing segments within the digital ecosystem.
Traditional media, while still significant, continues to see a decline in share. Television remained the largest traditional medium in 2025, accounting for 21% of total ad spends, followed by print at 14%. However, the continued shift toward measurable, mobile-first and commerce-linked media is steadily reshaping advertiser budget allocation.
From a sectoral perspective, FMCG, e-commerce, telecom and BFSI remained the largest contributors to advertising spends in 2025. E-commerce recorded the strongest growth, with ad spends rising 40.8% year-on-year, while telecom and BFSI also reported steady gains amid rising digital adoption and improving consumer demand.
