India’s Digital Advertising in 2025: AI, Mobile and Monetisation Set the Stage for a Bigger 2026

2025 was the year India’s digital advertising matured from acceleration to dominance. What began as a mobile-first push evolved into an AI-powered ecosystem built for scale - and all

signs, 2026 will amplify this story even further.

India’s ad market crossed the ₹1.1 trillion mark this year, with digital commanding nearly ₹49,000 crore — a 44% share, surpassing television once and for all. This milestone wasn’t just about media spend; it reflected a structural shift in how brands, agencies, and consumers connect in the new economy.

The Shifts of 2025: Defining Digital Advertising.

Mobile cemented its crown. Nearly 78% of digital ad budgets were mobile-led, confirming the smartphone’s role as the most influential storefront for commerce, entertainment, and discovery.

Festive + eCommerce fused into high seasonality. The 2025 festive cycle broke new records, with FMCG, retail, and D2C brands driving ad intensity on digital platforms. It was a year when “shopping” became India’s latest media moment.

Programmatic and retail media scaled dramatically. Programmatic trading accounted for over 40% of digital spends, while retail media grew at over 20% year—on—year—overtaking even search and social in incremental revenue impact.

CTV and OTT stepped up. Connected TV reached 40 million users, moving fast toward 50 million in 2026. OTT platforms finally became a core planning bucket, not an experimental line item. Premium digital video found its place in mainstream media mixes.

The 2026 Playbook: More Digital Advertising. More Data. More Depth.

The industry now eyes FY26 with confidence — digital advertising is projected to grow another 15%, reaching ₹56,400 crore and accounting for nearly half (46%) of total ad spend.

AI will move from tool to fabric. What began as creative and copy assistance will evolve into full-stack automation — defining audience segments, optimising spend, and measuring ROI in real time.

CTV will go performance-first. With home screens and pause ads turning into valuable inventory, CTV will straddle both brand and performance objectives. The next phase of India’s video evolution will be lean-back and clickable.

Retail media becomes omnichannel. Expect to see the convergence of online marketplaces, quick commerce, and in-store digital surfaces, as brands pursue one performance system across digital touchpoints.

Regional-first consumption will surge. The following 200–300 million internet users will be vernacular-first. AI-powered localisation will drive hyper-personalised creative at scale — a shift that could redefine how national brands speak “regionally.”

The Digital Advertising Takeaway

The 2025-to-2026 transition marks India’s most exciting inflexion in digital marketing yet — one fueled by AI, mobile, and measurable media. The coming year won’t be about chasing trends; it will be about mastering the systems that make marketing intelligent, inclusive, and instantly actionable.