GroupM sees India ad spend rising 7% in 2025 to ₹1.6 tn, digital to dominate

The report, released on Tuesday, says that digital advertising, including digital extensions of traditional media, will account for 60% of the total ad revenue, cementing its dominance in the evolving media landscape.

While digital and TV together will account for 86% of ad spend, streaming TV’s share within total TV advertising is expected to rise to 12.6%, signalling a critical shift in viewing habits and media investments.

India’s ad market: steady growth amid global uncertainty

India remains among the top four growth markets globally, despite economic uncertainties. Global advertising spend crossed the $1-trillion-mark in 2024 and is expected to grow at 7.7% in 2025, with digital leading the charge.

Contrary to its earlier forecast for last year, Indian advertising spends grew 8.8% in 2024 to reach ₹1.53 trillion, said GroupM. 

The 2025 growth will be led by digital, which is pegged to grow at 11.5%. Out of ₹10,730 crore of the incremental advertising spend, digital alone is expected to take ₹10,225 crore.

Additionally, GroupM predicted that TV ad revenue would decline by 1%, while print ad expenditure is expected to grow by 4%. Out-of-home and cinema advertising are expected to grow by 8% and 10%, respectively.

Sectors contributing to 60% of advertising (SME, realty, education, BFSI, tech/telco) are projected to grow at approximately 10%.

Prasanth Kumar, CEO, GroupM South Asia, attributed the forecast to AI-driven marketing innovations, the surge of commerce-driven advertising, and emerging formats like programmatic connected TV (CTV) and AI-powered retail media. “India is at the forefront of a marketing revolution driven by AI, data privacy, and immersive technologies. As digital crosses 60% of ad spends, we see a shift toward hyper-personalization and AI-driven content,” Kumar said.

The TYNY 2025 report highlights ten major industry shifts, underscoring how brands are recalibrating their strategies in the face of evolving consumer behavior and regulatory changes. Some key trends include:

AI-powered marketing & automation: AI-driven agents are expected to take over campaign management, content creation, and media optimization, making marketing more autonomous and data-driven.

Retail media surge: Retail media advertising is expected to contribute 13.2% of total ad spends, growing at a 40% CAGR since 2019.

CTV expansion: Connected TV (CTV) households are set to exceed 65 million, with streaming capturing 13% of total TV ad spend.

E-commerce disruption: India’s third-largest online shopper base continues to reshape ad strategies, with quick commerce emerging as a dominant force.

Data privacy & measurement challenges: The adoption of data clean rooms, AI-enhanced attribution, and integrated measurement models is redefining how brands track campaign performance.

AI, data, and the future of measurement

Parthasarathy Mandayam, chief strategy officer – South Asia, GroupM, highlighted the evolution of AI in marketing decision-making. “In 2024, AI-driven models became widespread for content generation and workflow automation. In 2025, we are entering an era of AI-driven autonomous decision-making, where AI will optimize campaigns, media investments, and content strategy in real time,” he said.

On measurement challenges, Mandayam emphasized the shift toward integrated measurement frameworks. “With fragmentation and privacy regulations, traditional tracking methods are becoming obsolete. Marketers must now combine market mix modeling, multi-touch attribution, and clean room analytics to measure true impact,” he explained.

Priti Murthy, president, GroupM Nexus, stressed that data privacy is no longer a compliance measure but a strategic advantage. “Marketers are rapidly migrating to data clean rooms—not just for privacy compliance, but to drive richer audience insights and precision marketing,” she said.

She also pointed to the role of clean rooms in publisher monetization. “Publishers are curating audience segments within privacy-safe environments, unlocking new revenue streams and enabling deeper marketing collaborations,” Murthy added.

GroupM leaders also underscored the deep integration of AI across marketing functions, particularly in vernacular engagement, hyper-personalization, and customer service automation.

Vinit Karnik, managing director, content, entertainment, and sports, GroupM, emphasized the growing role of AI-powered influencer marketing. “AI-driven influencers are redefining storytelling. With their ability to be always-on, brand-safe, and culturally relevant, they offer brands an unprecedented level of personalization and engagement,” he said.

Atique Kazi, president – data, performance, and digital products, GroupM, noted the explosive growth of retail media and quick commerce. “Retail media has been growing at 40% CAGR and is no longer just an advertising channel—it’s a key driver of omnichannel retail strategies. Quick commerce is also disrupting traditional retail models, with brands optimizing for hyper-local, real-time demand,” he said.

Despite global economic uncertainties, India’s advertising sector continues to expand, with digital, AI-driven commerce, and CTV leading the way. With retail media, quick commerce, and influencer marketing undergoing rapid transformations, 2025 will be a defining year for brands and marketers navigating this high-growth yet complex landscape.