MUMBAI: The advertising landscape in India is on the brink of its most transformative year yet. With AI taking over marketing workflows, quick commerce redefining e-commerce, and connected TV (CTV) gaining an unprecedented foothold, brands are scrambling to stay ahead. The latest forecast from GroupM’s TYNY report outlines the trends that will shape 2025, and let’s just say, if you’re not innovating, you’re falling behind.

AI agents take the wheel

The machines are here, and they’re not just running ads—they’re planning, activating, and measuring entire campaigns. The rise of sophisticated AI agents will automate scheduling, reporting, and even basic content creation, freeing up human marketers to focus on strategy. By late 2025, expect AI-powered agents to handle customer service, hyper-personalised advertising, real-time campaign optimisation, and even vernacular content creation at scale.

GroupM south Asia CSO Parthasarathy Mandayam (Maps) stated, "As consumer behaviour grows more complex, marketing measurement is rapidly evolving. With data privacy driving change, traditional analytical models are integrating AI and real-time analytics for better accuracy. Brands are adopting unified measurement frameworks to make smarter decisions. In 2025 we also see a rapid adoption of AI agents, going beyond automation and productivity enhancement to transform areas like customer service, vernacular engagement and real-time campaign optimisation."

GroupM south Asia CSO Parthasarathy Mandayam

Quick commerce rewrites the e-commerce playbook

E-commerce in India is growing at breakneck speed, and quick commerce (Q-commerce) is its turbocharged engine. The online digital commerce market is projected to touch Rs 167,000 crore by 2028, making up 9-11 per cent of total retail GMV. India’s advertising industry is keeping up, with ad revenue expected to reach Rs 1,64,137 crore in 2025, growing by 7 per cent. Digital media alone will account for 60 per cent of all advertising, an 11.5 per cent jump from last year.

GroupM India president – data, performance, and digital products, Atique Kazi explained, "The convergence of brand and retail media is rapidly shaping a unified 'One Commerce' ecosystem. Marketers are quickly pivoting to connected commerce outlook bridging multi-channel commerce approach and how media investments in one channel influence or cannibalise the other. As quick commerce promises instant delivery and purchase gratification, it has also pushed the marketers and agencies to be quicker, agile, nimble, and war-footed."

GroupM India president – data, performance, and digital products, Atique Kazi

Q-commerce brands are also experimenting with time-based advertising. Morning ads for dairy, late-night campaigns for desserts, and weekend promotions for snacks are becoming the new norm. As for marketing costs? "CPMs on Q-commerce can rival IPL rates," the report notes, urging brands to negotiate smarter and automate their ad buys.

CTV's big leap

India’s CTV (Connected TV) market is exploding. By 2025, over 65 million households—or 30 per cent of India’s TV viewers—will be watching content via CTV, making it a goldmine for hyper-personalised and programmatic advertising.

"CTV has got the eyeballs; however, advertising spends haven’t matched the viewership in comparison to the audience reach it holds. Live sports have been an exception. The unlock for 2025 is not to get caught in measurement; blending strategies that are device-agnostic is key," said Kazi.

Advertisers are also getting smarter with CTV ads. From leveraging advanced ACR (automatic content recognition) data to hyper-target users based on past viewing habits, to innovating with interactive ad formats, CTV is redefining TV advertising. However, measurement remains a pain point. "A dual measurement approach is necessary until we get a unified industry standard," experts suggest.

Data privacy

With India’s Digital Personal Data Protection Act coming into play, data clean rooms are becoming indispensable. These secure environments allow brands to collaborate on audience insights without directly sharing data. By integrating tools like Google’s audience data hub and Amazon marketing cloud, brands can now measure campaign effectiveness while keeping consumer privacy intact. Digital is expected to drive 60 per cent of India’s ad growth in 2025, accounting for Rs 10,225 crore of incremental advertising.

GroupM Nexus president Priti Murthy highlighted, "With the rise of data clean rooms, marketers are now unlocking deeper audience insights while maintaining consumer trust—transforming data collaboration in a way we’ve never seen before. From enriched audience data and targeting to advanced analytics opportunities, we see DCR transforming marketing."

GroupM Nexus president Priti Murthy

AI disrupts search

Google searches as we know them are changing, thanks to generative AI. Instead of clicking through multiple links, users are getting AI-generated answers directly in search results. This is a game-changer for SEO, forcing brands to focus on structured content, semantic SEO, and featured snippets to stay visible.

"Performance marketing will no longer be about driving clicks but about owning conversations, influencing AI-driven content discovery, and ensuring brands remain top of mind in a world where traditional SEO is being rewritten," added Murthy.

Influencers, but make them AI

The influencer marketing game is getting a digital facelift. AI-powered influencers are gaining traction, offering consistent brand messaging, 24/7 availability, and endless scalability. Unlike human influencers, they don’t age, don’t demand higher pay, and don’t get involved in scandals (at least not yet).

GroupM south Asia head of sports, esports, and live entertainment, Vinit Karnik noted, "The rise of AI-powered influencers is revolutionising how brands engage with audiences, blending technology and creativity to drive authentic, scalable interactions. As India’s 750 million smartphone users consume more immersive content, AR-driven campaigns are already delivering up to three times higher conversions for brands."

GroupM south Asia head of sports, esports, and live entertainment, Vinit Karnik

With these seismic shifts in advertising, brands must embrace AI, double down on data privacy, and rethink their media strategies. The future belongs to those who can balance automation with creativity, scale personalisation without breaching privacy, and engage consumers across multiple channels.