New Delhi: India's advertising industry is projected to grow by 7% in 2025, reaching Rs 1,64,137 crore, according to the latest This Year Next Year (TYNY) report released by GroupM, the media investment arm of WPP. The report highlights digital dominance, AI-driven marketing, and shifting consumer behavior as the key growth drivers, adding an incremental Rs 10,730 crore to the industry.

GroupM India is a leading digital and data-driven marketing services conglomerate, operating agencies such as Wavemaker, EssenceMediaCom, Mindshare, mSix&Partners, and Motivator. The company uses cutting-edge AI, data analytics, and marketing innovations to help brands maximize their advertising impact

India among top global ad markets

Prasanth Kumar, CEO of GroupM South Asia, emphasized India’s position as a global leader in the AI and data-driven marketing revolution.

"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-four growth market, with digital now accounting for over 60% of ad spend," Kumar said.

He further noted that the rise of personalized engagement, commerce-driven marketing, and responsible innovation is fueling mixed reality and immersive technology in brand storytelling.

"While TV remains vital, we are witnessing AI agents transform customer interactions. Brand-audience connections are also being redefined with the surge of emerging formats like programmatic CTV and AI-driven retail media. All of this is positioning India for unprecedented innovation and impact in the modern marketing era," Kumar added.

Digital & TV dominate ad spend

According to Ashwin Padmanabhan, Chief Operating Officer of GroupM India, India’s advertising ecosystem is rapidly evolving due to the dominance of digital media and changing consumer habits.

"Digital and TV together account for 86% of total ad spend, with streaming TV now contributing 12.6% of total television ad revenue—signaling a critical shift for brands optimizing across high-growth platforms," he said.

He pointed out that key sectors such as SMEs, real estate, education, BFSI, and technology/telco—contributing to 60% of total ad spending—are projected to grow by around 10% in 2025.

"Additionally, rising investments from electric vehicles (EVs), fintech, and gaming are further accelerating market expansion," Padmanabhan added.

AI, data & economic growth to fuel ad market

Highlighting the role of India’s economic trajectory, Parveen Sheik, Head of Business Intelligence at GroupM India, projected steady advertising growth in line with India’s expected GDP expansion of 6.5% in 2025.

"With India’s GDP projected to grow by 6.5% in 2025, its advertising market remains strong, ranking 9th globally. Digital ad spending is now close to Rs 1 lakh crore, fueled by AI, commerce, retail media, and hyper-personalized marketing. As the economy grows, brands must embrace agility, data intelligence, and sustainable strategies to maximize impact in this dynamic landscape," she said.

Key advertising & marketing trends for 2025

The TYNY 2025 report highlights several emerging trends that will shape India's advertising and marketing industry in the coming year:

* AI-Driven Marketing: AI-powered customer interactions and automated campaigns will transform engagement strategies.

* Immersive & Mixed Reality Experiences: Augmented reality (AR), virtual reality (VR), and smartphone innovations will enhance brand storytelling.

* Data Privacy & Security: The rise of Data Clean Rooms will reshape India's privacy-first marketing strategies.

* Retail Media & Omnichannel Growth: Integrated digital and physical retail experiences will become the norm for brand marketing.

* E-commerce Expansion: The rapid adoption of quick commerce will fuel India’s online shopping boom. 

* Generative AI in SEO & Search: AI-driven content creation will revolutionize search marketing and SEO strategies.

* AI Influencers & Hyper-Personalization: AI-generated influencers and action-driven campaigns will gain mainstream acceptance.

* CTV & Programmatic Growth: Connected TV (CTV) advertising will drive hyper-personalized and data-driven ad strategies.

* Advanced Measurement & Analytics: AI will enhance data analysis, attribution models, and ad performance tracking.

Global ad market & economic trends

The TYNY report also highlights key global economic trends, noting that elections in 60+ countries in 2024 could influence governance and economic policies.

The report also states that while most developed economies are experiencing disinflation and labour market slowdowns, AI is at the centre of global industrial transformation. However, startup funding, though showing signs of recovery, remains subdued compared to previous years.