Growth of Digital Advertising in India

Digital advertising in India has come a long way and digital is no longer just a medium but has become a way of doing business.

According to a report on digital advertising, the Indian digital advertising industry, currently sized at around Rs. 8, 202 crore, is expected to see a growth of 32% CAGR to reach Rs. 18, 986 crore by 2020.

Future of Digital Advertising in India

In 2018, India will have around 50 crore internet users where digital media spends currently make about 15% of the total advertising industry. By 2020, it is estimated to increase to 24% of the entire industry.

Drivers of Growth

Digital advertising spends will grow around 32% in 2018 while globally, it is expected to overtake TV spending by 2018. The rise in internet usage is led by the roll-out of 4G, coupled with reducing data costs and the increasing number of smartphone users. Some of the key influences of the growth of digital media are video content along with the engaging mobile experience, voice-based interaction, digital payments, etc.

The Indian advertising market is expected to grow at a very high rate over the next few years. It is well-poised to be one of the biggest markets in APAC region. Some of the key growth drivers of digital advertising in India are as follows:

1. In digital advertising, results are easy to measure and the audience reach is infinite. In addition, businesses get the luxury of target-oriented advertising. This increased reach coupled with accurate consumer insights add to the reason behind growth in digital advertising.

2. As consumers are becoming more digital savvy, mobiles are quickly becoming the first touch-point of consumer interaction for many businesses. It offers businesses the opportunity to reach the relevant audience with the right context and at the right time. That is why, digital advertising is growing faster on mobiles than on desktops.

3. Due to advancement in technology, there has been an increase in adoption of digital platforms like social media platforms, video and more. This has led to an increase in the reach of digital advertising among more people.

4. Display, Native and Programmatic advertising are also pushing further the growth of advertisement investment into the digital sector. Out-stream videos, artificial intelligence backed chat bots, etc. are some of the new formats that are catching the eyes of marketers.

Shift from Traditional Media to Digital Media

When it comes to performance advertising, digital media has evolved as a powerful platform. The rapid growth of internet-enabled businesses such as e-commerce, digital payments, etc. has also caused a shift of ad expense towards digital ad platforms. The power of better measurability is attracting more and more business to digital advertising. Although the growth of digital media in India is much lower when compared to the matured markets around the globe, the country carries immense potential for easy and powerful digital advertising consumption.

To stay ahead of the competition, businesses are leveraging disruptive technologies like AR, VR and AI. Using them, businesses are consolidating digital advertising strategies across formats and devices to reach the most valuable audiences at scale.


With the growth of digital advertising, businesses must need to change their advertising strategies to digital. As we said, digital is fast becoming a way of building business. This is a critical takeaway for you to understand and take full benefit of the growth of digital advertising in your business.