MUMBAI: India’s advertising industry isn’t just growing; it’s strutting down the marketing runway like a star-studded campaign launch. The media investment giant under WPP, GroupM has unveiled its latest This Year, Next Year (TYNY) report, forecasting a seven per cent boost in India’s ad market, pumping total spend up to Rs 1,64,137 crore in 2025. That’s a jaw-dropping Rs 10,730 crore more—now that’s what we call an ROI worth bragging about!
Digital is the undisputed king, now commanding a hefty 60 per cent of ad revenues. As brands compete for attention, they are diving deep into AI-driven marketing, immersive content, and hyper-personalised engagement to stay ahead.
GroupM south Asia CEO Prasanth Kumar stated, "India is at the forefront of a marketing revolution driven by AI and data privacy. As global ad spend surpasses $1 trillion, India emerges as a top 4 growth market, with digital now accounting for over 60 per cent of ad spend. With a shift to personalised engagement, commerce-driven marketing, and responsible innovation, mixed reality and immersive tech fuel experiential content. While TV remains vital, AI agents are transforming customer interactions, and emerging formats like programmatic CTV and AI-driven retail media are redefining brand-audience connections. All of this positions India for unprecedented innovation and impact in the modern marketing era."
TV and digital together are the powerhouses of India's ad industry, contributing a colossal 86 per cent of total ad spend. Streaming TV is no longer an afterthought either, now making up 12.6 per cent of total TV ad revenue.
“India’s advertising ecosystem is being reshaped by digital dominance and shifting consumer behaviours,” said GroupM COO Ashwin Padmanabhan. “Key sectors like SMEs, real estate, education, BFSI, and tech/telco—contributing 60 per cent of total advertising—are set to grow at around 10 per cent, further accelerating market expansion. Additionally, rising investments from EVs, fintech, and gaming are fuelling the market’s momentum.”
Despite economic fluctuations across the globe, India’s GDP is projected to expand by 6.5 per cent in 2025, keeping its advertising sector resilient and strong. GroupM head of business intelligence Parveen Sheik highlighted, “With India’s GDP projected to grow by 6.5 per cent in 2025, its advertising market remains strong, ranking 9th globally. Digital ad spend is now close to Rs 1 lakh crore, driven by AI, commerce, retail media, and hyper-personalisation marketing. As the economy grows, brands must embrace agility, data intelligence, and sustainable strategies to maximise impact in this dynamic landscape.”
Trends shaping 2025: What’s hot in advertising?
GroupM’s TYNY report reveals a host of transformative trends set to redefine India’s advertising scene in 2025. Here’s what brands should keep an eye on:
● AI agents take over: Marketing campaigns are being revolutionised with AI-driven customer interactions.
● Immersive experiences explode: Mixed reality, immersive tech, and smartphones are fuelling India's surge in experiential content.
● Privacy takes centre stage: Data clean rooms are shaping India's privacy-first marketing landscape.
● Retail media booms: Omnichannel strategies are redefining India's e-commerce future.
● Quick commerce accelerates: The e-commerce sector is shifting gears with lightning-fast commerce solutions.
● Generative AI rules search: Traditional search and SEO are evolving as AI takes the lead.
● AI influencers rise: Forget traditional celebrities; AI-driven brand storytelling is taking centre stage.
● Chief prompt officers arrive: India's content marketers are leading a global transformation in AI-driven campaigns.
● CTV goes big: Streaming TV’s rise is ushering in an era of hyper-personalisation and programmatic ads.
● Data privacy & AI converge: New integrated measurement frameworks are addressing fragmentation and privacy concerns.
With AI shaping every facet of marketing, India’s advertising industry is on an unstoppable trajectory—like a viral ad campaign that refuses to be skipped. Brands that embrace this digital-first, AI-powered landscape will thrive, riding the Rs 1.64 trillion wave of opportunity. Those that don’t? Well, they’ll be the advertising equivalent of a banner ad—ignored, blocked, and eventually forgotten.
