Social media to overtake TV as India’s top ad format within five years: Magna

New Delhi: India’s advertising market is projected to grow by 7.8% year-on-year in 2025, with total ad revenue expected to rise by Rs 99 billion, taking the overall adex from Rs 1,272 billion ($14.7 billion) in 2024 to Rs 1,371 billion ($15.9 billion) in 2025, according to IPG Mediabrands’ latest MAGNA June update report. 

The report forecasts continued momentum in 2026, with another 7.7% increase expected.

While the first half of 2025 is expected to grow at 6%, H2 growth is pegged at 9%, though trade uncertainties may influence outcomes later in the year.

The growth is underpinned by strong domestic demand, economic resilience, and an ongoing digital transformation that has seen digital advertising overtake traditional media in 2024.

In 2025, digital adex will rise 12% to Rs 728 billion ($8.4 billion), accounting for 51% of total advertising spend, while traditional formats are expected to grow at a slower 3.4%, reaching Rs 643 billion ($7.5 billion). 

Social media advertising, in particular, is fast emerging as the largest format and is projected to surpass television over the next five years.

According to Hema Malik, Chief Investment Officer at IPG Mediabrands India, ad spend in 2025 will remain resilient, absorbing the post-election and post-T20 World Cup slowdown from 2024.

“MAGNA expects dynamic ad spend in finance, media, pharma, technology, gaming, and retail, while automotive and electronics might lag,” Malik said. “The trio of video, social, and retail will once again lead adex growth."

The growth is being primarily driven by Digital Pure Player formats, valued at Rs 680 billion ($7.9 billion), which are expected to grow at 11.4%.

Video advertising, the second-largest format, is projected to reach Rs 413 billion ($4.8 billion), growing at 4% overall. However, while digital video is expanding at a robust 17%, overall growth is tempered by linear television, forecast to rise just 2.5%. 

Together, Digital Pure Play and Video formats account for 80% of India’s total adex, underlining the digital-first shift in advertiser focus.

Publishing is expected to grow 3.5%, with its digital iteration expanding at twice the rate. 

Meanwhile, Audio and Experiential media, which together represent 5% of the total adex, are forecast to grow at 5.9% and 12.9%, respectively.

The positive adex trajectory aligns with India’s broader economic outlook. The International Monetary Fund (IMF) projects India’s GDP growth at 6.2% in 2025, rising to 6.3% in 2026. 

India is also poised to overtake Japan in 2025 as the world’s 4th largest economy, and is expected to surpass Germany by 2028 to claim the 3rd spot.

The report stated that this upward trajectory is driven by robust domestic growth, cooling inflation, and renewed government spending. The RBI’s rollback of monetary tightening and front-loaded interest rate cuts are expected to boost liquidity and consumption further.

Despite potential trade headwinds from a shifting global landscape, India is well-positioned due to its low reliance on exports and strong internal demand, particularly in sectors like finance, media, technology, pharma, gaming, and retail.

Malik noted that ad-supported streaming is on the rise as platforms shift to more affordable pricing models. Long-form digital video is growing at over 25% annually, currently accounting for 6% of video adex, with expectations to hit double-digit share within three years.

India's advertising market grew 6.5% in 2024, despite high-stake events like the General Elections and the ICC T20 World Cup, which elevated spending temporarily.