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Indian advertising sector to grow at 9.86% CAGR to touch Rs 1.12 lakh crore by 2025

The Indian advertising sector is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.86% from Rs 93,166 crore in 2023 to Rs 1,12,453 crore by 2025, according to a report by Dentsu India.

It noted that digital media could register a CAGR of 23.49% to reach Rs 62,045 crore by 2025 from Rs 40,685 crore in 2023. Digital media is projected to comprise 55% of the overall ad spending by 2025 followed by TV and print with 25% and 16% share, respectively.

By the end of 2024, digital media is anticipated to contribute 50% of the total advertising spending of Rs 1,01,591 crore followed by TV and print with 28% and 18% share respectively.

According to the report, the share of digital in the overall ad pie is projected to rise while that of TV and print are expected to decline.

The report stated that digital media has surpassed television as the largest advertising medium by securing an ad spend share of Rs 40,685 crore in 2023, followed by television (Rs 29,836 crore) and print media (Rs 18,652 crore).

Within digital media, online video and social media are the biggest segments with advertising share of Rs 11,363 crore and Rs 11,962 crore, respectively. The share of paid search and display banners stood at Rs 9,419 crore and Rs 6,579 crore, respectively.FMCG was the biggest advertising segment contributing Rs 31,428 crore to the overall ad spends followed by e-commerce (Rs 12,803 crore), and consumer durables (Rs 5,540 crore).Commenting on the report, Dentsu South Asia CEO Harsha Razdan said, “India’s digital revolution is more than a surge of numbers; it’s a wave of change that is sweeping across our lives, our industries, and our society. Artificial intelligence is the driving force behind this change, enabling our e-commerce market to reach $200 billion by 2026. But as we embrace this AI-powered era, we must also redefine our vision of success. It’s not enough to aim for financial growth; we must also strive for social good. We must be human in the face of technology—empathetic, creative, and courageous—shaping the future of Indian advertising with transparency, accountability, and ethics.”

Dentsu India Group Chief Strategic Advisor Narayan Devanathan noted, “The Dentsu India Digital report is a testament to our commitment to providing our clients with the best-in-class solutions and insights that help them navigate the dynamic and complex media landscape. We believe that digital media is not just a medium, but a mindset that drives innovation and creativity across all platforms and formats. The report showcases how digital media has become the dominant force in the industry, surpassing television and influencing other media as well. It also reveals the potential of emerging sectors, trends, and technologies that will shape the future of advertising and consumer engagement. We are confident that this report will serve as a valuable resource for advertisers, media owners, and industry stakeholders, as well as inspire them to embrace the opportunities and challenges that lie ahead.”

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