Digital media was the largest contributor to advertising spends in 2024, accounting for 49% (Rs 49,251 crore) of the total AdEx, according to the dentsu-e4m Digital Advertising Report 2025. Brands across categories increased their investments in the medium to engage consumers effectively, with FMCG, e-commerce, consumer durables, pharmaceuticals and automotive emerging as key sectors driving this growth.
The FMCG sector remained the dominant player in digital media, contributing 34% (Rs 16,606 crore) of the total Digital AdEx. The report added that this marks a 13% growth from 2023, indicating a sustained focus on digital channels for consumer engagement.
Following closely, the e-commerce segment held a 21% share (Rs 10,131 crore) in digital ad spends.
Among the fastest-growing sectors, travel and transport saw an impressive 48% rise in digital media spends. Other sectors experiencing significant digital media growth include consumer durables, which recorded a 45% increase, and government and social organisations, which saw a 42% growth in spending.
Retail, e-commerce and automotive sectors also saw a rise in digital media expenditure, fueled by targeted promotions and discount-driven strategies.
Industries are leveraging digital platforms strategically, with allocations varying across segments. The telecom sector dedicates 66% of its total media budget to digital, with significant investments in online video, social media, and paid search.
The e-commerce sector follows closely, allocating 65% of its media budget to digital, with a strong focus on paid search and social media. Pharmaceuticals allocate 54% of their budgets to digital advertising, largely focusing on paid search and social media.
The FMCG sector prioritises online video and social media, while BFSI leans towards paid search and display banners. Real estate, consumer durables, and automotive brands allocate funds across paid search, social media, and display banners.
Media and entertainment brands invest heavily in online video and social media, while the travel and transport sector spreads its spends across social media, paid search, and online video.
The education sector prioritises online video, followed by social media and paid search, whereas retail brands focus primarily on social media and paid search. Government and social organisations mainly invest in social media and online video to reach their target audiences effectively, states the dentsu-e4m Digital Advertising Report 2025.
Luxury and premium brands increased their digital ad spends by 8-10% in 2024. While high-end consumers make discretionary purchases, exclusive festival offers and curated experiences drive conversions.
Digital remained the primary advertising channel, and premium brands also leveraged sports events like IPL and the Olympics to connect with the next generation of luxury buyers, enhancing brand engagement and loyalty.
To read the full report, click here.