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India's Digital Advertising Market Set to Reach $8.15B

Digital Marketing

Business Honor
26 March, 2025

India's digital advertising market is expected to grow to $8.15 billion by 2026, driven by e-commerce, martech, and AI innovations.

India's digital advertisement market is set to undergo huge growth, reaching INR 69,856 crores (US$8.15 billion) by 2026, growing at a rate of 19.09% from an estimated INR 59,200 crores ($6.91 billion) this year. This is driven mainly by e-commerce and digital retail, with martech solutions being the prime driver. According to the new 'Martech Landscape in India, 2025' report by Dentsu, personalization powered by AI and data analytics is transforming customer experiences and digital marketing strategies. The report highlights the ongoing shift towards analytics and automation in marketing.

One of the major growth areas is programmatic purchasing, which accounted for 42% of India's digital media industry in 2024, growing at a value of INR 20,686 crores ($2.41 billion). This category will also grow at a 21.24% compound annual growth rate (CAGR) and amount to INR 30,405 crores ($3.55 billion) by 2026 with a market share of 44%. Advertising on e-commerce websites also saw remarkable growth, totaling INR 11,293 crores ($1.32 billion) or 22.93% of digital media outlay.

The report sees that almost 79% of marketers are focusing on innovation, with 41% creating AI and machine learning for customized experiences, 49% working on immersive experiences such as virtual try-ons, and 46% applying gamification strategies. AI-driven chatbots like TARS and Verloop are also improving customer service and lowering acquisition costs by as much as 40%.

The Indian digital marketing market is also bolstered by growth in social commerce and regional language content adoption that enhance engagement. New job roles in technical skills, marketing, and analytics with growing martech adoption are on the rise, and martech-related job roles are increasing by 40% every year.