Digital media claims 46% of India’s Rs. 1,00,000 crore (US$ 11.41 billion) advertising market: Crisil

India’s advertising industry has surpassed Rs. 1,00,000 crore (US$ 11.41 billion), with digital media now accounting for nearly 46% of total ad spend in FY25, according to Crisil Intelligence. Over the past five years, the sector has grown at a Compound Annual Growth Rate (CAGR) of 6–7%, with a marked shift in budget allocation. Traditional media, which held around 65% of the market in FY20, has declined to 46–47% in 2025. In contrast, digital advertising has nearly doubled its share from 24% in FY20 and is expected to grow by 9–11% this year, while traditional media likely stagnates.
The digital advertising landscape has evolved significantly. Social media’s share has increased to 40–45% in FY25, driven by short-form videos and creator-led content, overtaking search, which has dropped by 5–6%. YouTube’s share has risen to 20–22%, supported by its widespread urban and rural reach. Rapid digital adoption, cheaper mobile data, and increased screen time averaging over five hours daily have fuelled this change. Major sectors like fast-moving consumer goods (FMCG), automobiles, and e-commerce have shifted substantial portions of their ad budgets towards digital channels. Despite this growth, much of India’s digital ad spending benefits foreign-owned platforms such as Meta and Google, emphasising the need to develop domestic digital platforms to retain greater economic value within the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.