Quick-commerce disruption and rural demand are influencing advertising expenditures. While e-commerce and quick commerce brands are increasingly utilizing digital advertising to capitalize on impulse purchases, automotive and consumer goods manufacturers are directing their budgets towards audiences in smaller towns and villages. India’s advertising sector surpassed ₹1,01,084 crore in 2024, marking a 6.3% growth, as reported in a recent digital report. The industry is expected to grow by 6.5% in 2025, reaching a market size of ₹1,07,664 crore.
Digital media continues to dominate, accounting for 49% of total spending, or ₹49,251 crore, indicating a significant shift towards online platforms. Digital advertising grew at a remarkable rate of 21.1%, closing the year at ₹49,251 crore. Projections suggest that digital ad spending will reach ₹69,856 crore by 2026, with a compound annual growth rate of 19.09%.
Television and print media remain significant, contributing 28% (₹28,062 crore) and 17% (₹17,529 crore), respectively. However, sectors such as e-commerce, automotive, banking, financial services, insurance, fast-moving consumer goods, and retail are heavily investing in digital, with increased spending on sports content across both TV and OTT platforms.
Social media and online video are the leading digital advertising platforms, contributing 29% (₹14,480 crore) and 28% (₹13,756 crore), respectively. The FMCG and e-commerce sectors are the largest contributors to digital media ad spending, with FMCG allocating 44% of its budget to online video and e-commerce focusing on paid search (39%) and social media (31%).
The FMCG segment continues to lead the Indian advertising market, contributing 31% (₹31,467 crore), followed by e-commerce and quick commerce brands that leverage impulse buying. The emphasis on new commerce models, including direct-to-consumer, social commerce, quick commerce, and live commerce, is anticipated to significantly drive sectoral growth over the next decade.
Upcoming sporting events, such as the Indian Premier League season, the ICC Champions Trophy, and the Asia Cup 2025, are expected to boost advertising growth, providing brands with opportunities to engage large and diverse audiences.
Traditional advertising channels are also showing positive trends, with increased spending on reality shows and large-format print ads. The latter half of 2024 has laid the groundwork for continued growth, as brands refine their strategies across various media platforms, utilizing innovative content for improved SEO.
