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The Indian digital advertising ecosystem is witnessing an unprecedented growth, driven by an influx of technological advancements, shifting consumer behaviour and increasing digital platform penetration. The sector has grown rapidly and now outpaces other advertising forms as businesses realign their marketing strategies to suit digital-first consumers.
According to the latest e4m-dentsu Report, unveiled today in Mumbai, India’s digital ad market is projected to grow by 20.2% in 2025, reaching Rs 59,200 crore by the end of the year.
Meanwhile, India’s digital ecosystem will see continued expansion, with the industry set to grow at a compounded annual growth rate of 19.09%, reaching a market size of Rs 69,856 crore by 2026. By then, digital media will contribute more than 61% of the total advertising spend in the Indian industry.
The report further stated that in 2024, the industry reached a market size of Rs 49,251 crore, marking a 21.1% growth from the previous year. This trend is likely to persist as digital media is set to become the most dominant class of media in terms of overall advertising in the years to come.
Digital Shift
With the widespread adoption of social media, video platforms and AI-driven ad platforms, digital advertising has become the primary driver of India’s marketing industry.
This growth highlights the strengthening dominance and steady expansion of digital channels in India's advertising landscape.
The Coexistence of Digital and Traditional Advertising
Despite the surge in digital advertising, India’s marketing landscape remains a blend of progress and tradition.
"While generative AI, programmatic ads, and automation are streamlining advertising processes, traditional media such as TV, radio, and print are also gaining prominence," the report stated.
Brands are now increasingly integrating digital strategies with conventional methods, creating a phygital (physical + digital) advertising model that enhances customer experience.
The report further mentions that retail Media 2.0 and unified commerce are transforming retail trends, while generational values are increasingly shaping brand engagement.
This phase blends digital and traditional approaches, creating a dynamic landscape for businesses to engage with consumers in meaningful and innovative ways.
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