2024 saw digital AdEx grow 21% from 2023

The Indian digital advertising industry closed 2024 with a market size of Rs 49,251 crore, reflecting a growth rate of 21.1% compared to 2023, states the dentsu-e4m Digital Advertising Report 2025.

The Digital AdEx stood at Rs 40,685 crore at the end of 2023, marking a growth rate of 36.6% over 2022, the 2024 edition of the e4m-Dentsu report states. The 2023 edition of the report notes that the Digital AdEx stood at Rs 29,784 crore at the end of 2022, growing at 39.5% over 2021.

TOP CONTRIBUTORS ACROSS YEARS

The FMCG sector has consistently led Digital AdEx, maintaining the highest investment share over the years. In 2024, the FMCG sector's ad spends stood at Rs 16,606 crore, contributing 34% to the total Digital AdEx. This follows Rs 14,755 crore (36%) in 2023 and Rs 11,403 crore (38%) in 2022. The E-commerce sector has ranked second through the years, with ad spends of Rs 10,131 crore (21%) in 2024, Rs 7,865 crore (19%) in 2023, and Rs 5,982 crore (30%) in 2022.

Category-wise highlights from 2024

In 2024, the travel and transport sector saw the highest growth in digital media expenditures, rising by 48%, followed closely by consumer durables, which grew by 45% and government and social organisations, which saw 42% growth over 2023.

Telecom: Allocated highest share of 66% of overall media budget to digital media; 29% equally distributed between online video, social media; 23% to paid search.

E-commerce: 65% to digital media, 39% on paid search, 31% on social media.

Pharmaceutical: 54% on digital media, 43% to paid search, 28% on social media.

FMCG: 44% on online video, 30% on social media.

BFSI: 36% on paid search; 27% on display banners.

Real Estate: 31% on paid search; 26% on social media.

Consumer Durables: 29% on paid search; 25% social media; 21% on display banners.

Automotive: Majority of budget equally across paid search & social media (26% each).

M&E: 37% on online video; 28% on social media.

Travel and transport: 30% on social media, 28% on paid search, 24% on online video.

Education: Mostly on online video, followed by social media and paid search.

Retail: Large proportion on social media, followed by paid search.

Govt & social organization: Majority on social media & online video.

Category-wise highlights from 2023

In 2023, the BFSI sector witnessed the highest growth of 75% in digital media spends, followed by the Indian retail sector, which saw a growth of 55% over 2022.

Telecom: Highest share with 64% to digital, 80% across online video (28%), social media (27%), paid search (25%).

E-commerce: 61% to digital media; 52% to paid search.

Pharmaceutical: 49% of its media budget on digital, with 53% allocated to paid search.

FMCG: 47% to digital media, 44% online video, 25% social media.

BFSI: 42% on paid search and 27% display banners.

Real Estate: 1/3rd on paid search, 1/4th on social media.

Automotive: Majority on paid search and online video.

Consumer Durables: Mostly on paid search, display banners, social media.

M&E: 36% on online video, followed by paid search & social media.

Tourism: Paid search, followed by social media & online video.

Education: Mostly on online video, followed by paid search & social media.

Retail segment: Majority on social media & paid search.

Govt sector: Majority on social media & online video

Category-wise highlights from 2022

In 2022, the e-commerce sector tripled its digital ad spends, the telecom industry saw an increase of 4x and the pharmaceuticals sector an increase of more than 3x over 2021.

FMCG: Majority on online video (43%), followed by social media (25%).

E-commerce: 52% on paid search, 19% on social media (Spends on paid search grew 6x over 2021).

Consumer durables: 35% on paid search, 20% on social media and display banners, respectively.

Pharmaceutical: 53% on paid search (11x increase over 2021).

Auto: 31% on paid search; 26% on online video.

Telecom: 28% on online video (15x increase over 2021), 27% on social media & 25% on paid search.

Education: 35% on online video.

M&E: 35% on online video.

BFSI: 42% on paid search, 27% on display banners.

Real Estate: 38% on social media, paid search (29%), and display banners (20%).

Programmatic ad buying contributed 42% to the Indian digital media industry across the years with Rs 20,686 crore in 2024, Rs 17,088 crore in 2023 and Rs 12,509 crore in 2022.

Digital media is expected to continue outpacing other advertising forms, driven by key factors such as social media, video platforms, and AI-driven ad placements. These elements will contribute to a 20.2% growth in 2025, with the digital advertising market expected to reach Rs 59,200 crore by the end of the year.

Going forward, digital media is expected to grow at a CAGR of 19.09%, reaching a market size of Rs 69,856 crore by the end of 2026. By that time, digital media will contribute 61% of the total advertising spend in the Indian industry, the report adds.