India’s ad market crosses Rs 1 lakh crore; Digital captures nearly half of ad spend: Crisil

New Delhi: India’s advertising market has grown at a compound annual rate of 6-7% over the past five years, crossing the Rs 1 lakh crore mark in 2024-25, according to a report by Crisil Ratings. 

The study highlights a decisive shift in favour of digital advertising, which now accounts for 45-46% of total ad spend, nearly doubling from 24% in FY20.

The momentum is set to continue this fiscal, with digital expected to grow by 9-11%, while traditional media remains largely flat.

“This signals an ongoing transformation in how India consumes content,” Crisil noted. In FY20, traditional formats like television and print commanded nearly 65% of the market. By the last fiscal, their share had dropped to 46-47%.

Television faces pressure on two fronts: broadcasters are losing advertising revenue as audiences migrate to OTT platforms, and distribution networks are shedding subscribers to fibre-based services. The direct-to-home segment alone lost over 10 million subscribers between December 2020 and 2024.

Print media, meanwhile, is battling stagnant circulation, a growing preference for digital news apps, and advertiser migration to online platforms. Overall, readership declined by 500 basis points between FY20 and FY25.

The shift is most visible in the spending patterns of consumer-facing sectors. “FMCG companies now allocate 55-60% of their ad budgets to digital, up from 30% in FY20,” said Pushan Sharma, Director at Crisil Intelligence. Automobiles and e-commerce are following the same trajectory.

Crisil expects the trend to accelerate as traditional media houses increase their digital focus. Digital platforms offer sharper targeting, micro-market strategies and better cost efficiency, while creator-led content drives stronger engagement and relatability. This is pushing brands towards digital-first strategies, marking an irreversible change in India’s advertising landscape.