Indian digital adex to reach $17–$19 billion by 2029: Bain & Company

New Delhi: The global advertising market is undergoing a historic transformation, with digital advertising set to reach 80–85% of total ad spend by 2029, said Bain & Company’s new report “Advertising in the Digital Age, in India and Around the World”.

The report said that the global market, which is currently valued at ~$1 trillion in 2024, will expand to ~1% of global GDP by 2029, outpacing economic growth in both mature and emerging economies.

Regionally, while North America holds nearly half of advertising spend and shows steady growth at 9–11% p.a. through 2029, the Asia-Pacific region is poised to grow faster on the back of high-growth markets like India.

India’s advertising market is valued at $16-$18 billion in 2024, contributing around 0.4% to GDP, and 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. 

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, Bain & Company predicted. 

“This growth is fueled by rising private consumption, high digital consumption, rapid OTT adoption, and widening high-speed Internet coverage,” the report said.

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.

As consumers globally and in India maintain their preference for smartphones for media consumption, mobile devices are earning nearly 70% (5–10 percentage points higher in India) of total digital ad spend and are expected to maintain dominance. 

New channels like connected TV (CTV), which currently commands roughly a 10% share globally (<5% in India), are gaining salience at the expense of desktop, owing to increasing smart TV penetration and access to premium consumers. 

The number of CTV households in India more than doubled over the past two years, growing from roughly 20 million in 2022 to nearly 45 million in 2024. Brands are using contextual CTV ads to target premium consumers, with OTT platforms enabling performance marketing capabilities.

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

“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. 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 personalised, 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,” Kashyap added.

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 (up from ~3.7 hours in 2019). 

“OTT adoption is surging, evident with 100M+ paid users in India for leading OTT (JioHotstar) by 2025 and over 500M monthly active users during major events like the IPL,” the report said.

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 its current 35%–40% globally and in India over the next five years, said Bain & Company 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 the report, this 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. 

“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-personalised campaigns, adapting messaging in real time based on factors like air quality or rainfall,” the report said.