India's Ad Market Set to EXPLODE: ₹2 Lakh Crore Boom! Global Slowdown Can't Stop This Growth!

India's advertising industry is demonstrating remarkable resilience and rapid expansion, set to cross the ₹2 lakh crore mark by 2026 and position itself as a global leader in growth. This positive trajectory is highlighted in a recent analysis by advertising firm WPP Media, titled 'This Year Next Year---2025 Global End of Year Forecast'.

Market Projections and Growth

• The total advertising revenue in India is estimated to reach ₹1.8 lakh crore ($20.7 billion) in 2025, marking a significant 9.2 percent growth over 2024.
• This growth is expected to accelerate to 9.7 percent in 2026, pushing the market value to ₹2 lakh crore.
• Among major economies, India is projected to be one of the fastest-growing advertising markets, closely following Brazil, which is expected to see 14.4 percent growth in its ad market.

Shifting Media Landscape

• Traditional television advertising faces structural challenges, with revenue predicted to decline by 1.5 percent in 2025. Viewership is shifting online as consumers spend more time on digital platforms.
• Streaming TV is identified as a major growth area, with the recent Reliance Jio-Disney Star merger creating a dominant player and Amazon Prime Video's planned ad platform launch intensifying competition.
• Digital platforms, especially social media, are the largest growth drivers in absolute terms, projected to reach ₹17,090 crore in 2026. Short-form video content is gaining traction.
• Connected TV (CTV) is anticipated to see double-digit growth as advertisers increasingly target audiences on streaming services.

Key Growth Channels

• Retail media has emerged as India's fastest-growing advertising channel, forecast to jump 26.4 percent in 2025 to ₹24,280 crore and 25 percent in 2026 to ₹30,360 crore. By 2026, it is expected to account for 15 percent of total ad revenue.
• Amazon and Walmart-owned Flipkart are the leading retail advertising entities, while emerging quick commerce players like Blinkit, Zepto, and Instamart are showing rapid, albeit smaller-base, advertising revenue growth.
• Cinema advertising is gradually recovering, with an 8 percent growth projected for 2025, and is on pace to surpass pre-pandemic advertising levels by 2026.
• Audio advertising is also expected to see modest growth, driven by digital formats like podcasts, while terrestrial radio is forecast to decline.
• Print advertising, contrary to broader digital trends, is forecast to grow, particularly driven by government, political, and retail advertising.

Impact

• This robust growth in India's advertising market signals strong investor confidence in the country's economic prospects and consumer demand.
• Companies involved in digital media, streaming, e-commerce, retail, and even traditional media adapting to digital will likely see increased revenue opportunities.
• Advertisers will benefit from a more dynamic and fragmented media landscape, allowing for targeted campaigns across various platforms.
• Impact Rating: 8/10

Difficult Terms Explained

• Headwinds: Difficult or challenging conditions that slow down progress.
• Structural Challenges: Deep-rooted problems within an industry's framework that are difficult to overcome.
• Connected TV (CTV): Televisions that can connect to the internet, allowing access to streaming services and apps.
• Retail Media: Advertising platforms offered by retailers, often leveraging shopper data, on their own websites or apps.
• Linear TV: Traditional television broadcasting, where viewers watch scheduled programming at a set time.
• Box-office collections: The total amount of money earned from ticket sales for movies shown in cinemas.