India’s advertising spend to reach 0.5% of Gross Domestic Product (GDP) by 2029: Bain

India’s advertising market is poised for strong growth, with ad spend expected to rise from the current 0.4% of Gross Domestic Product (GDP) to nearly 0.5% by 2029, according to Bain & Company’s report Advertising in the Digital Age, in India and Around the World. This trajectory mirrors the rise seen in China and Japan in recent years and positions India among the fastest-growing advertising markets globally. The sector’s expansion is being fuelled by rapid digital adoption, rising private consumption, the scaling of over-the-top (OTT) platforms, and the widening reach of high-speed internet. Globally, the advertising industry, valued at nearly Rs. 87,63,000 crore (US$ 1 trillion) in 2024, is projected to account for around 1% of world GDP by 2029, with digital channels driving 80-85% of total spends.

India’s advertising market, valued at Rs. 1,40,208-1,57,734 crore (US$ 16-18 billion) in 2024, is expected to grow at a compound annual rate of 10-15%, outpacing global averages. Digital advertising already contributes 50–60% of India’s spend and is likely to nearly double to Rs. 1,48,971-1,66,497 crore (US$ 17-19 billion) by 2029. Small and medium-sized enterprises (SMEs) and direct-to-consumer (D2C) brands are emerging as key drivers, supported by mobile-first strategies, deeper e-commerce integration, and performance-led campaigns. Mobile continues to dominate, accounting for more than 70% of India’s digital ad spend, while connected TV (CTV) adoption is also accelerating, with households increasing from 20 million in 2022 to 45 million in 2024. Artificial intelligence (AI) is further reshaping the landscape, powering predictive targeting, real-time optimisation, and advanced Return on investment (ROI) tracking. With publishers innovating on ad formats and AdTech players integrating end-to-end solutions, India’s digital-first ecosystem is set to evolve rapidly. Bain concludes that creativity, data, and technology will define leadership in this high-growth market. 

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