India's advertising landscape is undergoing a major transformation, with digital platforms now accounting for more than half of the country’s total ad spend. According to recent statements by Sanjay Jaju, Secretary of the Ministry of Information and Broadcasting, digital advertising has surpassed the 55 percent mark and is rapidly heading towards a 60 percent share of the total advertising budget.
This significant shift was highlighted during the Digital Entertainment Summit (DES) 2025, where Jaju emphasized that India’s digital surge is driven by over 550 million smartphone users, widespread internet connectivity, and affordable mobile data. These factors have contributed to the exponential growth of digital media, fundamentally altering how brands engage with consumers.
Industry projections support this upward trend. GroupM’s TYNY 2025 report estimates that India's total advertising market will reach ₹1.64 lakh crore this year, marking a 7 percent annual growth. Out of this, nearly ₹98,000 crore is expected to be allocated to digital advertising alone. Similarly, EY projects that digital will make up 61 percent of the total ad spend by 2026, up from 32 percent in 2019 and 56 percent in 2024.
Key drivers of this growth include social media platforms, online video streaming, and retail media. Social media accounts for nearly 29 percent of the digital ad share, while online video platforms and connected TV follow closely at 28 percent. Retail media, which involves advertising on e-commerce and shopping platforms, contributes around 22 percent. Programmatic advertising, which uses automation and data analytics for ad placements, now constitutes over 42 percent of digital ad spend and is projected to grow further.
The shift is also being powered by small and medium-sized businesses. MSMEs now contribute between 35 and 37 percent of India’s digital advertising revenue, primarily investing in major platforms such as Google and Meta to reach targeted audiences.
Technology continues to play a central role in the evolution of the advertising sector. Artificial intelligence is being widely adopted to create and personalize content, while new advertising models are emerging through connected TV, mixed reality, and AI-generated influencers. Moreover, data privacy reforms and the use of secure data clean rooms are enabling more responsible and precise audience targeting.
This growth aligns with global trends. Worldwide, digital advertising is expected to represent 75 percent of total media spending in 2025 and cross the $1 trillion mark. India’s trajectory not only matches but often exceeds global benchmarks, indicating the country’s strong digital momentum.
The dominance of digital advertising in India marks a fundamental change in the country's marketing ecosystem. With technology, innovation, and wide-scale internet penetration at the forefront, digital platforms are set to remain the primary driver of advertising growth for years to come.