Digital advertising is projected to account for around 80 per cent of global advertising revenue by 2029, signalling a fundamental shift in the industry as advertisers increasingly move spending towards online platforms, according to a report by ICICI Securities. Digital formats accounted for about 72 per cent of overall global advertising revenue in 2024, with their share expected to climb to around 80 per cent over the next five years.
The transformation is already clearly visible in India, where digital media has overtaken television to become the single-largest segment of the media and entertainment industry. Digital media expanded by more than 30 per cent year-on-year in 2025, making it the fastest-growing among the country's major media and entertainment segments.
Digital ad revenues near Rs 1 lakh crore
Digital advertising has emerged as the principal driver of this expansion, with its share of India's overall advertising market rising from around 56 per cent in 2024 to 63 per cent in 2025. Digital advertising revenue reached Rs 94,700 crore during the year, moving closer to the Rs 1 lakh crore mark.
India's overall advertising market also recorded strong growth, expanding 13.5 per cent in 2025 to around Rs 1.5 lakh crore. The pace exceeded the media and entertainment industry's overall growth of approximately 9 per cent as well as nominal per-capita GDP growth of 7.7 per cent. The report said this marked the first time in three years that advertising growth had outpaced nominal per-capita GDP growth.
Performance marketing has been an important factor behind the shift. Digital platforms allow advertisers to target specific audiences, track consumer responses and measure outcomes more precisely than traditional advertising formats, making them increasingly attractive to brands seeking greater accountability for their advertising expenditure.
Commerce-linked advertising surges
Retail search and in-game advertising are expected to emerge as major growth areas globally. Retail search advertising's share is projected to increase from around 33 per cent in 2024 to 46 per cent by 2029, while the share of in-game advertising is expected to climb from approximately 33 per cent to 39 per cent over the same period.
India is witnessing particularly rapid expansion in commerce-linked advertising. E-commerce and point-of-sale advertising surged 50 per cent in 2025 to around Rs 22,000 crore, an amount equivalent to about 85 per cent of television advertising revenue.
The numbers point towards a structural realignment of the advertising industry rather than a temporary change in spending patterns, with consumer behaviour, advertiser priorities and platform revenue models increasingly moving towards digital channels.