How programmatic is transforming India's media landscape

Over the past decade, India’s digital media landscape has undergone significant expansion and evolution. Internet penetration has increased significantly, rising from 14% in 2014 to 52% last year, which has brought over 820 million people online, with more than half of them hailing from rural areas.

The surge in digital access has fundamentally transformed media consumption and brought programmatic advertising to the forefront. Once considered an emerging technology, programmatic now accounts for nearly half (45%) of India’s digital ad spend, as brands increasingly depend on automation, data-driven targeting, and real-time bidding to enhance engagement.

As programmatic solidifies its position as the leading force in digital ad buying, three key trends are influencing its ongoing evolution in India.

Marketers are adopting deal-based buying

With the rise of programmatic advertising in India, there is an increasing adoption of deal-based buying models that provide advertisers with enhanced control, efficiency, and performance. Programmatic Guaranteed (PG) deals remain the leading method, as the majority of programmatic buying in India is conducted through PG agreements. 

PG deals enable brands to obtain guaranteed impressions at a set price, leveraging automation and serving as the preferred option for advertisers who value certainty in their media investments.

As programmatic adoption continues to grow, Private Marketplace (PMP) deals are increasingly gaining traction, offering a more flexible and data-driven method for ad purchasing. PMP transactions allow publishers to sell premium ad inventory to chosen advertisers via a controlled auction system, typically achieving higher CPMs compared to open exchanges. 

Advertisers benefit from access to exclusive placements and the ability to refine bidding strategies in real time, making PMP a strong complement to PG deals.

The increase in programmatic adoption is driving a corresponding rise in deal-based buying, as evidenced by the statistics: India's programmatic advertising expenditure is anticipated to increase at a compound annual growth rate (CAGR) of 21.24% from 2023 to 2026, ultimately reaching Rs 30,405 crore (approximately $3.7 billion) by 2026. 

As advertisers evolve, they are increasingly integrating PG and PMP models to achieve an optimal balance between predictability and flexibility, thereby enhancing reach, efficiency, and ROI.

Data is playing a more pivotal role, as brands expand their sources of information

As programmatic advertising advances in India, data is emerging as the crucial factor in creating more precise and performance-driven campaigns. Advertisers are moving away from broad targeting towards highly qualified, data-driven strategies that facilitate better audience segmentation, enhance ad relevance, and yield stronger ROI.

Retail media networks are essential to this transformation, as they integrate first-party data into programmatic platforms, enabling brands to effectively reach high-intent consumers. Historically, India’s programmatic ecosystem has relied significantly on Google audiences; however, there is an increasing interest in diversifying data sources to lessen dependence on a single provider. 

Tools such as Magnite Audiences are contributing to the development of a more independent and robust data ecosystem, ensuring that programmatic advertising focusses less on mass reach and more on precision and performance.

Simultaneously, privacy regulations and the elimination of third-party cookies are prompting advertisers to reevaluate their data strategies. Consequently, brands are increasingly utilising first-party and contextual data to uphold targeting accuracy while honouring user privacy. 

This shift highlights a wider trend within the industry: as programmatic grows, the need for more advanced data also increases.

The opportunity for data-driven success in India is substantial. Recent projections indicate that the Indian market for data analytics is anticipated to grow at an impressive CAGR of 35.8% from 2025 to 2030, underscoring the growing significance of data in influencing the future of digital advertising. 

As Indian advertisers refine their audience-first strategies, data will serve as the foundation for programmatic growth, facilitating more personalised, efficient, and impactful ad experiences.

New ad formats are emerging, driving further innovation

As India’s digital advertising market evolves, programmatic is extending beyond conventional display and video into innovative, high-impact formats that provide advertisers with enhanced opportunities for engagement and conversion. 

Commerce media is one of the fastest-growing areas, allowing brands to strategically position ads at the point of purchase, thereby influencing consumer decisions in real time.

E-commerce giants such as Flipkart and Amazon India are at the forefront of commerce media advertising, offering advertisers access to high-intent shoppers and valuable first-party data.

With the ongoing growth of retail and digital media in India, commerce media is emerging as a vital element of programmatic strategies, enabling brands to engage with consumers at key moments in their purchasing journey. 

As we look to the future, India’s programmatic ecosystem is set for continued innovation. As Connected TV (CTV) gains mainstream traction, emerging digital formats like Digital Out-of-Home (DOOH) and interactive ad experiences are poised to transform the way brands connect with audiences across various touchpoints. 

India’s programmatic boom reflects a regional shift

India’s programmatic advertising market is experiencing significant growth and transformation. The rise in internet penetration, the growing trend of deal-based purchasing, and the swift transition to data-driven strategies have established programmatic as the foundation of digital advertising in the country. However, India’s programmatic evolution is not occurring in isolation. 

The Asia-Pacific region is undergoing a significant transformation, with programmatic advertising expected to reach $688.8 billion by 2030, fuelled by a compound annual growth rate (CAGR) of 23.8% from 2024 to 2030.

As we look to the future, India’s programmatic market is set to evolve, influenced by increasing advertiser sophistication, regulatory developments, and the ongoing growth of digital infrastructure. 

As programmatic advertising establishes itself as the norm for digital ad buying throughout Asia, the forthcoming phase of growth will hinge on the ability of brands and publishers to fully capitalise on its potential—utilizing automation, audience insights, and omnichannel strategies to enhance both efficiency and impact.