Digital advertising in India to reach Rs 52,992 crore this year: PMAR

The digital advertising industry in India continues its upward trajectory, albeit at a more moderate pace compared to previous years. According to the Pitch Madison Advertising Report 2025, digital advertising grew by 14% in 2024, reaching Rs. 45,292 crores. This growth rate, while still impressive, marks a slowdown from the 30%+ growth rates seen in earlier years.

Despite the deceleration, digital advertising's share of total advertising spend in India increased from 40% in 2023 to 42% in 2024. The report forecasts further growth in 2025, with digital advertising expected to reach Rs. 52,992 crores, representing a 17% increase and capturing 44% of the total advertising market.

Within the digital landscape, video advertising remains the largest contributor, accounting for 27% of total digital ad spend. It grew by 10% in 2024 to reach Rs. 12,209 crores. Social media advertising showed the highest growth at 21%, reaching Rs. 10,506 crores and contributing 23% to digital ad spend. Ecommerce and search advertising each contributed 18% to digital ad spend, growing by 17% and 15% respectively.

Connected TV (CTV) advertising emerged as a significant trend in 2024, growing by almost 35% and reaching an estimated market size of close to Rs. 1,500 crore. The report projects that by the end of 2025, there will be 50-60 million CTV households in India, with CTV ad revenue expected to reach Rs. 2,300-2,500 crores.

The report highlights the maturing of the digital advertising market, with brands prioritizing strategic digital investments over indiscriminate experimentation. Newer brands are increasingly incorporating brand-building initiatives into their strategies, leveraging diverse networks of credible social influencers instead of relying solely on celebrity endorsements.

Looking ahead, the report anticipates that influencer marketing and e-commerce platform advertising will continue to expand in 2025. However, it notes that the era of exceptionally high growth rates in digital advertising is now behind us, with expansion expected to be slower due to the higher base.

While digital advertising in India is growing rapidly, it still lags behind global trends. The report indicates that digital's share of global advertising spend is expected to reach 77% in 2025, compared to 44% in India, suggesting significant room for further growth in the Indian market.

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