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The 9th edition of the much-awaited dentsu-e4m Digital Advertising Report 2025 is out! The comprehensive report was jointly unveiled today in Mumbai by dentsu and the exchange4media Group in the presence of industry leaders. Driving the theme - Looking Through the Kaleidoscope, this report captures the evolving trends and media spends in the Indian advertising industry. The theme this year emphasises embracing the present in the ever-evolving digital landscape rather than solely pursuing future trends. It highlights the complexity of today’s digital ecosystem, shaped by real-time shifts in data, technology, and consumer behaviour.
The dentsu-e4m Digital Advertising Report 2025 was unveiled by Harsha Razdan, CEO - South Asia, dentsu; Karan Bedi, Director & Head, Amazon MX Player, Narayan Devanathan, President & Chief Strategy Officer, South Asia- dentsu, Anita Kotwani, CEO – Media, South Asia, dentsu; Amit Wadhwa, CEO, South Asia, dentsu Creative; Devang Shah, President - Industry Solutions, CXM, dentsu India; Vinod Thadani, Chief Growth Officer, Media & CEO, iProspect India; Anandita Sarkar, Vice President, Brand & Communications, South Asia, dentsu; Abheek Biswas, AVP – Consumer Insights-dentsu India; Dr Annurag Batra, Chairman and Editor-in-Chief, BW Businessworld and Founder, exchange4media; Nawal Ahuja, Co-Founder, exchange4media and other industry leaders.
According to the report, the Indian advertising industry is projected to grow at 6.5 percent, reaching a market size of Rs 1,07,664 crore in 2025. The growth is projected to accelerate in 2026, with the rate increasing to 7.2 percent, driving the market size to Rs 1,15,460 crore by year-end. It further states that digital media continues to lead the transformation with a CAGR of 19.09 percent, reflecting significant investments in online platforms. The key growth drivers include increased spending on reality shows, sports content across TV and OTT platforms, and large-format print advertising.
“The Indian advertising industry grew by 6.3 percent in the previous year, closing 2024 with a market size of Rs 1,01,084 crore. This growth was primarily driven by the general and assembly elections, which triggered a significant surge in ad spending. Looking ahead, the Indian advertising landscape is poised for modest growth, with major sporting events such as IPL 2025, the ICC Champions Trophy, and the Asia Cup 2025, along with other cricketing events, expected to be key growth drivers this year. These events will offer significant opportunities for brands to engage with diverse audiences, ensuring the industry’s continued upward momentum,” the report stated.
The report states that key sectors such as e-commerce, automotive, BFSI, FMCG, and retail continue to dominate both digital and traditional media. The scale of offers and promotions across retail media, e-commerce, and D2C platforms is expected to be substantial, driving significant consumer engagement.
The FMCG segment continues to dominate the Indian advertising space, contributing 31 percent (Rs 31,467 crore), followed by e-commerce and quick commerce brands that capitalize on impulse buying. The e-commerce segment accounts for 15% (Rs 15,509 crore), while the consumer durables category contributes 7 percent to the overall advertising industry. This reflects the diverse and dynamic nature of market spending.
Digital media has emerged as the largest contributor to advertising spends, accounting for 49 percent (Rs 49,251 crore) of the Indian advertising industry. Television follows closely, contributing 28 percent (Rs 28,062 crore), while print media holds a share at 17% (Rs 17,529 crore). This shift underscores the growing dominance of digital platforms in shaping advertising strategies and capturing audience engagement.
In 2024, the travel and transport sector saw the highest advertising expenditure growth, rising by 33.4% compared to 2023. This growth was driven by the successful ‘Chalo India’ campaign aimed at attracting global tourists, the Maha Kumbh Mela 2025, and various local campaigns promoting India’s diverse landscape and cultural heritage. The e-commerce sector experienced a 21.1% increase in advertising spend, while the automotive segment grew by 20.4 percent. Continued growth in the automotive sector is expected, with two-wheeler brands making a strong comeback, particularly as electric vehicles (EVs) gain momentum in the market.
“The Indian digital advertising industry closed 2024 with a market size of Rs 49,251 crore, reflecting a growth rate of 21.1 percent compared to 2023. 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 are projected to contribute to a 20.2 percent growth in 2025, with the digital advertising market expected to reach Rs 59,200 crore by the end of the year. This growth underscores the ongoing dominance and expansion of digital channels in the Indian advertising landscape,” the report said.
To read the complete report, click here.
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