Whalesbook
Advertising Landscape Shifts as TV Volumes Contract
Television advertising volumes in India experienced a notable decline of 11% in 2025 compared to the previous year, according to TAM AdEx reports. This contraction is largely attributed to two significant factors: the government's prohibition on real money gaming (RMG) and a pronounced reallocation of advertising budgets towards digital platforms. The ban on RMG, which was a major advertiser, alone is estimated to have removed approximately ₹7,000 crore from the advertising market. This has created a considerable gap, particularly in sports programming where RMG companies were key sponsors.
Digital Platforms Capture Growing Share of Ad Spend
In contrast to the decline in linear television, digital advertising platforms, including Connected TV (CTV) and Over-The-Top (OTT) services, are experiencing substantial growth. Industry executives note that these digital channels are attracting incremental budgets as advertisers increasingly adopt unified screen strategies that balance broad reach with precise targeting. India's CTV household penetration is estimated to be between 50-60 million, with the CTV audience base growing significantly. Overall digital ad spends in India are projected to grow robustly, with forecasts suggesting they will become the dominant advertising medium, surpassing traditional television in the coming years.
FMCG's Tactical Approach and Evolving Consumer Behavior
While traditional categories like Fast-Moving Consumer Goods (FMCG) remain active advertisers on television, their usage has become more tactical. This strategic approach has contributed to lower overall volumes, even with stable advertiser presence. The erosion of the linear TV audience base is further exacerbated by consumers migrating to CTV, OTT platforms, and free viewing options such as YouTube and DD Free Dish. Advertisers like Parle Products are adopting multi-platform strategies, recognizing the importance of CTV for reaching younger demographics who are increasingly cutting traditional cable subscriptions. CTV inventory is seen as more premium, appealing to advertisers focused on sharper targeting and measurable outcomes, while linear TV continues to offer unmatched reach for mass audiences and live events.
Industry Outlook: Digital Dominance and Innovation
The Indian advertising market is poised for significant expansion, with digital advertising expected to lead the charge. Projections indicate that digital ad spends will continue to surge, driven by factors such as increasing internet penetration, the rise of vernacular content, and the adoption of AI in marketing. The growth of CTV is particularly noteworthy, with some estimates suggesting it could reach ₹3,500 crore in advertising revenue by 2027. As brands seek more effective and measurable ways to connect with consumers, the shift towards data-driven, targeted digital advertising, including CTV and OTT, is expected to accelerate, redefining India's media consumption and advertising landscape.