Indian ad market to grow 7% in 2025, reaching over Rs 1.6 lakh crore: GroupM’s TYNY

GroupM, the media investment group under WPP, launched the latest This Year Next Year (TYNY) advertising forecast with updates for February 2025. Indian advertising to grow by 7% in 2025 to reach Rs 1,64,137 crore adding an incremental Rs 10,730 crore.

The global landscape in 2024 witnessed elections across 60+ countries, signalling potential shifts in governance and economic policies. While most advanced economies are experiencing disinflation & the labour market cooling thus impacting demand. AI continues to take center stage, reshaping industries. While startup funding, though showing signs of revival, remains subdued. As part of the TYNY report, here are the key trends that were launched, shaping the advertising and marketing landscape in 2025.

Key trends for 25’ include:

• Reimagining Marketing: AI Agents Revolutionise Campaigns and Customer Interactions in 2025

• Transforming Engagement: Mixed Reality, Immersive Tech, and Smartphones Fuel India's Experiential Content Surge

• The Rise of Data Clean Rooms: Shaping India's Privacy-Centric Marketing Frontier

• Retail Media and Omnichannel Integration: Forging the Future of India's Ecommerce Expansion

• Quick Commerce: Accelerating India's Ecommerce Landscape

• Generative AI at the Helm: Revolutionising Traditional Search and SEO Strategies

• Revolutionising Brand Storytelling: The Ascendancy of AI Influencers and Action-Oriented Campaigns

• Chief Prompt Officers: India's Content Marketers Drive Global Transformation as AI Pioneers

• India's Big Screen Leap: CTV’s Growth Sparks Hyper-Personalisation and Programmatic Advertising

• Integrated Measurement Frameworks: Data Privacy, Fragmentation and AI drive the change

Prasanth Kumar, CEO, GroupM South Asia said, " India is at the forefront of a marketing revolution driven by AI and data privacy. As global ad spend surpasses $1 trillion, India emerges as a top 4 growth market, with digital now accounting for over 60% of ad spend. With a shift to personalised engagement, commerce-driven marketing, and responsible innovation, mixed reality and immersive tech fuel experiential content. While TV is vital, we also see AI agents transform customer interactions, we also witness brand-audience connections getting redefined with the surge of emerging formats like programmatic CTV and AI-driven retail media. All of this is positioning India for unprecedented innovation and impact in the modern marketing era."

Ashwin Padmanabhan, chief operating officer, GroupM said, "India’s advertising ecosystem is being reshaped by digital dominance and shifting consumer behaviours, Digital and TV together account for 86% of total ad spend, with streaming TV now making up 12.6% of total TV ad revenue—signalling a critical shift for brands to optimiSe across high- growth platforms. Key sectors like SME, realty, education, BFSI, and tech/telco contributing to 60% of total advertising are set to grow at around 10%, further accelerating market expansion. Additionally, rising investments from EVs, fintech, and gaming are fuelling the market’s momentum.’

Parveen Sheik, head of business intelligence, GroupM said, "With India’s GDP projected to grow by 6.5% in 2025, its advertising market remains strong, ranking 9th globally. Digital ad spends is now close to 1 lakh crore, driven by AI, commerce, retail, media, and hyper-personaliSation marketing. As the economy grows, brands must embrace agility, data intelligence, and sustainable strategies to maximise impact in this dynamic landscape."