India's digital advertising industry to be $8.15 billion by end-2026: Study

India’s digital advertising industry is likely to reach INR 69,856 crores (US$8.15 billion) by the end of the year 2026, growing at 19.09% rate from the estimated value of INR 59,200 crores ($6.91 billion) this year. This was revealed in the latest ‘Martech Landscape in India, 2025’ report released by Dentsu that highlights the role of martech in this growth. Listing out e-commerce and digital retail as the key drivers behind behind this growth, the report observes that the martech tools have been improving customer experience through AI-driven personalisation and advanced analytics.

Stating that there has been a clear movement towards automation and analytics in digital marketing, the report states that programmatic buying accounted for 42% or INR 20,686 crores ($2.41 billion) of India's total digital media market in 2024, indicating a 21% growth over 2023. This market is expected to rise at compounded annual growth rate (CAGR) of 21.24%, touching INR 30,405 crores ($3.55 billion) in value or controlling 44% share of the digital media market by 2026. Advertising on e-commerce platforms stood at INR 11,293 crores ($1.32 billion), amounting to 22.93% share of overall digital media spending and indicating 23.43% CAGR.

Analysing the spending trends, the report notes that with the rise in the pace of change, brands are investing a substantial amount of their budgets in innovation. Nearly 79% of marketers are looking at investing over 10% of their budget in innovation. While 41% of CMOs are looking to embrace AI and ML to deliver personalised experiences, 49% are looking at enabling immersive experiences such as virtual try-ons. 46% are looking at introducing gamification techniques and 40% are looking at implementing blockchain to achieve transparency and traceability. AI-powered chatbots such as TARS and Verloop help provide 24x7 customer support, minimising customer acquisition costs by up to 40%. 

Harsha Razdan, CEO, South Asia, dentsu, said, “Martech helps businesses make sense of vast amounts of data and turn it into meaningful customer experiences. Today, it’s about how well businesses integrate it into decision-making and customer engagement. The companies that get this right will build stronger customer relationships and more resilient businesses.”

Citing Forrester data, the report mentions that analytics tools such as Google Analytics and Mixpanel allow small and medium-sized businesses (SMBs) to optimise their campaigns leveraging real-time analytics to improve their marketing ROI by 25%. Similarly, citing Bain & Company data, the report mentions that India’s social commerce market is expected to touch $70 billion by 2030, with SMBs investing in tools such as Klear and Upfluence to monitor their influencer collaborations. In addition, the report cites the findings of a Harvard Business Review research which mentions that omnichannel brands retain 89% of customers, compared to 33% for single-channel businesses.

While India’s quick commerce market rose from $100 million in 2020 to $6 billion in 2024, companies such as Zepto, Blinkit, and JioMart can be seen focusing on ultra-fast deliveries. Simultaneously, regional language content is enhancing digital engagement. “90% of new internet users consume regional language content, with 3x higher time spent and 7x greater engagement rates,” the report mentions. The voice searches are growing at 270% annually, but mainly in in regional languages, indicating a potential consumer interaction shift.

Dentsu report observes that with the growth in martech adoption, new job roles will emerge requiring multifarious capabilities including marketing expertise, analytical skills, and technical proficiency. Citing LinkedIn’s 2023 Emerging Jobs Report, Dentsu specifies that martech-related roles in India have grown by 40% year-over-year.

Narayan Devanathan, president and chief strategy officer for Dentsu South Asia, said, “India's martech landscape is evolving rapidly, redefining how brands engage with consumers. By viewing martech as the backbone of their business strategy, brands can unlock smarter solutions that fuel growth and impact.”