Ad industry may hit Rs 1.1 trillion by year-end

Tue, 04 February 2025
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Roshni Shekhar/Business Standard
 
India's advertising industry is projected to grow at 6.5 per cent in 2025 to reach a market size of Rs 1.1 trillion by the end of the year, majorly driven by the digital segment, according to the Dentsu e4m Digital Report 2025.

Digital media has emerged as the largest platform for advertising spending, accounting for 49 per cent, that is Rs 49,251 crore (Rs 492.51 billion), of the Indian advertising industry. 

This is followed by television contributing 28 per cent (Rs 28,062 crore/Rs 280.62 billion) and print media 17 per cent (Rs 17,529 crore/Rs 175.29 billion).

'Key growth drivers include increased spending on reality shows, sports content across TV and over-the-top (OTT) platforms, and large-format print advertising,' the report stated. 

Ecommerce, automotive, BFSI (banking, financial services, and insurance), fast-moving consumer goods (FMCG), and retail continue to dominate both digital and traditional media.

In recent years, the out-of-home (OOH) advertising segment included new formats like digital displays, airport billboards, and digital OOH (DOOH). OOH ad spend reached Rs 3,800 crore in 2023, reflecting aggressive adoption by advertisers.

TV's share declined from 31 per cent to 28 per cent between 2023 and 2024, and is expected to drop further to 24 per cent in 2025. 

Print media followed a similar trend, decreasing from 20 per cent to 17 per cent by the end of 2024, with projections suggesting a further decline to 15 per cent by 2025-end, the report stated. 

Radio, which maintained a steady share of 2 per cent in 2024, is expected to decline to a per cent by the end of the year, reflecting the shifting dynamics of the advertising landscape.

'Looking ahead, OOH is projected to grow at a compound annual growth rate (CAGR) of 10 per cent through 2026, driven by various factors,' the report said.

Digital and OOH are the only media segments with a positive growth outlook until 2026, reflecting the Indian advertising industry's shift towards platforms offering greater engagement and flexibility. 

In contrast, traditional media like TV, print, radio, and cinema are projected to witness a decline over the same period a point collectively showcased through top media companies results in the July-September quarter (Q2FY25).

This overall growth of the advertising industry is projected to accelerate in 2026 when it will grow at 7.2 per cent, driving the market size to over Rs 1.15 trillion, according to the report. 

Digital media continues to lead the segment with a CAGR of 19.9 per cent, reflecting significant investments in online platforms.
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