India’s Ad Market to Hit Rs 1.85 Lakh Crore in 2025: WPP Report

India’s advertising industry continues to demonstrate resilience despite global economic headwinds. According to WPP’s latest This Year, Next Year (TYNY) report, total advertising revenue in the country is projected to reach Rs 1.85 lakh crore (USD 20.7 billion) in 2025, registering 9.2% growth over 2024. The updated estimate marks a clear upward revision from WPP’s earlier projection of 7% growth, which had placed the 2025 market at Rs 1.64 lakh crore.The report forecasts further acceleration in 2026, with ad expenditure expected to grow 9.7%, taking the market past the Rs 2 lakh crore milestone. This trajectory broadly aligns with the IMF’s projection of 10.2% nominal GDP growth for India in 2026.

Historically, India’s advertising expenditure (AdEx) has grown at roughly 1.5 times the rate of GDP, underlining a strong correlation between consumer spending and marketing investment. However, softer consumption and declining household savings have moderated growth momentum. WPP cited national accounts data showing that the share of household savings parked in bank deposits dropped from 43% to 35% between 2020 and 2024, even as consumer spending remained resilient across select categories.The festive season of September–October 2025 delivered a strong boost, with retail sales surpassing Rs 6 lakh crore, driven largely by deep discounting across online and offline channels, according to the Confederation of All India Traders. Despite this headline performance, the report pointed out a growing reliance on bargain-led spending and continued expansion of Buy Now, Pay Later (BNPL) usage.

Television advertising continues to face long-term challenges, with total TV ad revenue projected to decline 1.5% in 2025 to Rs 47,740 crore, before potentially returning to growth in 2026. Linear TV viewership is expected to fall at mid-single-digit rates as audiences increasingly migrate to digital platforms.Streaming, however, remains a bright spot. The November 2024 merger of Reliance Jio and Disney Star has reshaped the OTT market, creating a digital-first media powerhouse, while the launch of Amazon Prime Video’s ad-supported tier in 2025 has further intensified competition. Looking ahead, the 2027 IPL rights auction for the 2028 cycle is expected to be a critical inflection point as higher bid prices set the stage for a fresh battle between traditional broadcasters and digital platforms, likely accelerating the shift toward streaming-led investments.In the audio segment, advertising is projected to grow modestly, rising 1.5% in 2026 to Rs 2,610 crore, driven largely by digital audio formats and podcast advertising. In contrast, terrestrial radio is forecast to decline 1–2% annually through 2030, reflecting changing listening habits.

Print continues to outperform global trends. Newspaper advertising is set to grow 3.5% in 2025 and 4.5% in 2026, reaching approximately Rs 17,090 crore, supported by government, political and retail advertising, much of it located outside large agency networks. TV news consumption has climbed amid geopolitical uncertainty, while reliable third-party measurement for print readership is not expected to resume until 2026.Magazine advertising, however, continues to shrink, declining 13.6% in 2025 to Rs 170 crore, though select luxury publications continue to attract premium advertisers.Digital including social platforms remains the single largest growth engine. The segment is projected to reach Rs 71,710 crore in 2026, growing 11.1% year-on-year, with short-form video and emerging micro-drama formats leading engagement. By 2026, digital is expected to account for 35.5% of India’s total advertising revenue.

Retail media stands out as the fastest-growing channel. The sector is expected to expand 26.4% in 2025 to Rs 24,280 crore, followed by 25% growth in 2026, reaching Rs 30,360 crore. By then, retail media is forecast to command 15% of the overall ad pie. Amazon and Flipkart continue to dominate the space, while quick-commerce platforms Blinkit, Zepto and Instamart are scaling ad revenues at 100%+ growth rates, albeit from smaller bases.Search advertising is projected to grow at a more moderate pace of 8.9% in 2025 to Rs 21,550 crore, before slowing to 8% in 2026 as advertisers increasingly divert budgets toward retail media. Google’s 2025 launch of AI Overviews in India has added a layer of uncertainty, with its long-term impact on search behaviour and commerce yet to become fully evident.

Out-of-home (OOH) advertising is maintaining strong momentum, with spending forecast to rise 8.6% in 2025 to Rs 3,790 crore, with similar growth anticipated in 2026. Key drivers include the return of office commuting, continued metro rail expansion, rising adoption of digital OOH (expected to form 4.1% of OOH revenue by 2026), and sustained public investment in transport infrastructure. OOH spending remains predominantly local, with categories such as automotive, mobile phones, e-commerce, fintech, and media & entertainment driving growth.Cinema advertising is steadily recovering, climbing 8% in 2025 to Rs 840 crore, and is expected to surpass pre-pandemic levels in 2026, even as box-office collections face pressure from the growing preference for direct-to-streaming releases.Key advertiser categories driving growth over 2025–26 include automotive, retail, BFSI, food and beverage, and mobile handsets, while durables, commerce, retail and services remain stable contributors.

The structural transformation of India’s advertising ecosystem continues to be defined by the migration of budgets from linear TV to digital platforms, particularly commerce ecosystems. Connected TV (CTV) is expected to post robust double-digit gains as advertisers follow shifting viewer habits. However, the WPP report cautions marketers against over-prioritising short-term performance metrics at the cost of long-term brand building. By 2030, India’s advertising market is forecast to reach Rs 2.8 lakh crore, with commerce-led advertising expected to emerge as the dominant growth driver. Content-driven formats, while still significant, are projected to decline to 60.7% of total revenue from 71.6% in 2025, reinforcing the steady pivot toward a digital-first, commerce-centric advertising economy.