Indian ad industry to grow at 6.87% to reach Rs 115,460 cr by 2026: Dentsu

India’s advertising industry grew by 6.3% in 2024, reaching a market size of Rs 101,084 crore, despite macroeconomic headwinds, while digital advertising surged by 21.1%, closing 2024 at a market size of Rs 49,251 crore, outpacing traditional media. This was revealed in the 9th edition of Dentsu India flagship annual report, the ‘dentsu Digital Advertising Report 2025’.

Themed ‘Looking Through the Kaleidoscope,’ this year’s report shifts the focus from chasing the future to mastering the power of NOW. Instead of speculating on what’s next, ‘dentsu Digital Advertising Report 2025’ explores the convergence of technology, creativity, and consumer experience - the forces shaping India’s digital-first revolution.

The report predicts that by 2026, the Indian advertising industry is projected to grow at a compounded annual rate (CAGR) of 6.87%, reaching Rs 115,460 crore. Digital ad spends is pegged to reach Rs 69,856 crore, surpassing television, and print, firmly establishing digital as the dominant media force.

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%. By 2026, digital media is projected to contribute 61% of India’s total advertising spend. The telecom sector leads the way, allocating 66% of its media budget to digital, with e-commerce, pharmaceuticals, and FMCG segments following closely behind.

Social media and online video lead digital media spending, with social media contributing 29% (Rs 14,480 crore) and online video close behind at 28% (Rs 13,756 crore). Advertising spends on e-retail platforms contribute to 22.93% of all digital media spends. The FMCG and e-commerce sectors are the largest contributors to India’s digital media industry. Within digital media, FMCG directs 44% of its budget to online video, while e-commerce prioritizes paid search (39%) and social media (31%).

This seismic shift underscores one undeniable truth: brands must rethink, rewire, and reimagine their strategies to stay ahead.

Three game-changing forces driving the future

The ‘dentsu Digital Advertising Report 2025’ 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.

Insights that power action

Beyond trends, the ‘dentsu Digital Advertising Report 2025’ 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.

Reflecting on the industry’s evolution, Harsha Razdan, CEO, South Asia, dentsu, says, “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.”

Narayan Devanathan, President & Chief Strategy Officer, South Asia, dentsu, adds, “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.”

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