India — A new report by Bain & Company highlighted a significant shift in the global advertising market. It showed that ad spend was on track to reach approximately 1% of global gross domestic product (GDP) by 2029.
This notable increase from its rough valuation of $1 trillion in 2024 indicated a historic transformation in advertising, with digital advertising projected to make up between 80% and 85% of total ad spend by 2029. While North America was expected to hold nearly half of the total ad spend, the Asia-Pacific region was poised for faster growth, particularly in high-growth markets like India. The report showed that this growth was expected to outpace economic expansion in both established and emerging markets.
India’s digital ad market outpaced GDP growth
Positioning India as one of the fastest-growing digital advertising markets worldwide, India’s advertising market, valued at $16–$18 billion in 2024 and contributing about 0.4% to its GDP, is projected to grow at a compound annual growth rate (CAGR) of 10%–15% and reach around 0.5% of GDP by 2029.
The report also stated that digital advertising already accounted for 50%–60% of India’s total ad spend and was projected to grow at a CAGR of about 15% through 2029, reaching $17–$19 billion. This expansion was driven by a number of factors, including rising private and digital consumption, rapid OTT (over-the-top) adoption, and wider high-speed internet coverage.
Small and medium enterprises (SMEs) and direct-to-consumer (D2C) brands also contributed significantly to India’s digital advertising economy. Their contribution to the country’s digital ad spend grew from approximately 35% in 2020 to about 37% in 2024, and was projected to reach 40%–42% by 2029. This growth was fuelled by mobile-first marketing strategies, deeper e-commerce integration, and a strong focus on ROAS (return on ad spend) performance marketing.
Consumer behaviour and technology reshaped the market
Globally, and especially in India, consumers showed a preference for smartphones for media consumption. This trend resulted in mobile devices capturing nearly 70% of total digital ad spend—5–10 percentage points higher in India—and they were expected to maintain this dominance.
New channels like connected TV (CTV) were gaining ground at the expense of desktop. CTV, which accounted for approximately a 10% share of global ad spend, gained traction due to increasing smart TV penetration. In India, the number of CTV households more than doubled over the past two years, growing from roughly 20 million in 2022 to nearly 45 million in 2024.
According to the report, consumers in India spent an average of 4.8 hours per day on their mobile devices, up from 3.7 hours in 2019. The adoption of OTT services was also surging, with major events like the Indian Premier League (IPL) attracting over 500 million monthly active users.
Prabhav Kashyap, partner at Bain & Company said, “India’s digital advertising market is at an inflection point.” He added, “The convergence of mobile-led consumption, the rapid rise of video formats, and the integration of AI into every stage of the advertising process is reshaping how brands connect with consumers. As audiences spread their attention across more devices and platforms, the leaders will be those who diversify beyond mega platforms, design content for each channel from the ground up, and harness AI and first-party data to deliver personalised, high-impact campaigns.”
Prabhav also commented that over the next five years, “the ability to combine creativity, date, and technology will be the defining factor” in capturing the “most value”.
Moreover, in-app ad spending, particularly in video formats, was expected to remain a significant component of the market. Video formats were projected to grow by 6 to 8 percentage points from their current 35%–40% share in both India and globally over the next five years. Meanwhile, traditional search ads were expected to shift partially toward AI-powered search engines and AI summary ads.
This fragmentation of the user journey created more touchpoints for advertisers, but also increased complexity. In response, Indian brands were diversifying their media mix, moving 20%–30% of their budgets to platforms like e-commerce, CTV, and high-engagement channels such as IPL digital inventory. They were also adopting creative strategies that were tailored for each channel, such as influencer reels and long-form YouTube content, rather than repurposing traditional TV content.
The Rise of AI and AdTech
The report identified artificial intelligence (AI) and generative AI as critical tools for effective digital advertising at scale. Their use was expanding beyond creative production to include:
- Customer targeting using AI-driven audience clusters.
- Dynamic testing and learning with automated A/B testing.
- Media planning and campaign optimisation with AI-based real-time allocation.
- Advanced analytics for ROI measurement.
Leading adtech players were also integrating AI/machine learning (ML) to provide real-time market intelligence and hyper-personalised consumer experiences.
Devika Mittal, associate partner at Bain & Company said, “To unlock stronger ROI, brands and publishers need to work in closer sync. Compared to just a few years ago, we’re seeing the emergence of scaled adtech players (like InMobi and The Trade Desk) who are playing a pivotal role in driving more precise targeting and performance, maturing the ecosystem significantly and enabling brands to continuously sharpen their digital advertising strategies.”
The report concluded that adtech players had a strong opportunity to support brands and publishers and add value to this changing landscape, while the most successful players would be those that offered intelligence-led targeting capabilities and crucial value-added services, such as cross-channel attribution and incrementality measurement.
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