India’s Digital Ad Market Projected to Grow 15% Annually Through 2029

According to a new report from Bain & Company, digital advertising is set to reach 80–85% of total ad spend and account for ~1% of global GDP by 2029. While North America holds nearly half of advertising spend and shows steady growth at 9–11% annually through 2029, the Asia-Pacific region is poised to grow faster.

India’s advertising market is projected to grow at 10%–15% CAGR, reaching about 0.5% of GDP by 2029, making it one of the fastest-growing digital ad markets globally, says the company’s new report, Advertising in the Digital Age, in India and Around the World.

Digital advertising contributes 50%–60% of India’s total ad spend and is expected to grow at ~15% CAGR through 2029 to reach $17–$19 billion. This growth is fueled by rising private consumption, high digital consumption, rapid OTT adoption, and widening high-speed Internet coverage.

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Small and medium enterprises (SMEs) and D2C brands are emerging as key drivers of India’s digital advertising economy, with their contribution to India’s digital ad spends rising from ~35% in 2020 to ~37% in 2024, and projected to reach 40%–42% by 2029, with growth being led by mobile-first marketing strategies, deeper e-commerce integration, and a strong focus on ROAS-driven performance marketing.

Digital advertising contributes 50%–60% of India’s total ad spend.

“India’s digital advertising market is at an inflection point. 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,” said Prabhav Kashyap, Partner at Bain & Company.

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“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 personalized, high-impact campaigns. Over the next five years, the ability to combine creativity, data, and technology will be the defining factor in who captures the most value.”

Shifting Consumer Behaviour Expands Brand Touchpoints

Consumers are spending more time across multiple devices and platforms, with ~4.8 hours spent on mobile per day per user in India in 2023. OTT adoption is surging, evident with 100M+ paid users in India for the leading OTT (JioHotstar) by 2025 and over 500M monthly active users during major events like the IPL.

As mobile ad placement increases, in-app spend is expected to remain most salient. Within in-app ad spending, video formats are gaining traction in consumer engagement, and are projected to grow 6 to 8 percentage points from their current 35%–40% globally and in India over the next five years. At the same time, traditional search ads are expected to see a partial shift toward AI-powered search engines and AI summary ads.

Brands Redefining Digital Strategies

According to Bain & Company, the proliferation has fragmented user journeys, creating more touchpoints but also increasing complexity for advertisers. Indian brands are diversifying their media mix beyond mega platforms by shifting 20%–30% of their media budgets toward e-commerce, CTV, and high-engagement channels like IPL digital inventory.

The proliferation has fragmented user journeys, creating more touchpoints but also increasing complexity for advertisers.

Rather than repurposing TV content, they are adopting mobile- and platform-first creative strategies such as influencer reels, long-form YouTube content, and microsites, to tailor content to each channel.

Additionally, players are using first-party data and AI tools to deliver hyper-personalized campaigns, adapting messaging in real time based on factors like air quality or rainfall.

AI Becomes Foundational to Advertising Strategy

AI is becoming a vital enabler of effective digital advertising at scale. Strategic adoption is moving beyond creative production to include:

• Customer targeting through AI-driven audience clusters based on purchase intent and engagement history
• Dynamic testing and learning (T&L) with automated A/B testing and predictive performance modelling
• Media planning and campaign optimization with AI-based real-time allocation and cross-channel attribution
• Advanced analytics for ROI measurement, incrementality tracking, and spend optimization

Leading adtech players such as InMobi, AppLovin, The Trade Desk, and Moloco are integrating AI/ML-backed real-time market intelligence, FPD-based targeting, and ID-less contextual advertising to deliver hyper-personalized consumer experiences.

Publishers and AdTech Players as Growth Enablers

According to the findings, publishers are adapting to make their platforms more attractive for advertisers by offering minimally disruptive ad experiences, loyalty-driven engagement models, and building multi-source data engines that enable richer targeting and ROI tracking. Many are also integrating AI and machine learning to predict churn and optimize ad placements.

At the same time, adtech players are consolidating and vertically integrating, creating full-stack strategic partnerships that combine demand-side platforms (DSPs), supply-side platforms (SSPs), and ad exchanges.

“To unlock stronger ROI, brands and publishers need to work in closer sync,” said Devika Mittal, Associate Partner at Bain & Company.

“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 full report is available here.