Dentsu predicts fall of traditional media: Here’s how digital ecosystem is thriving

Social media (29% share) and online video (28% share) are the dominant forces. Paid search accounts for 23%, and display banners make up 16% 

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New Delhi: dentsu Digital Advertising Report 2025 report released on Tuesday painted a clear picture of the evolving Indian advertising landscape, with digital and out-of-home (OOH) advertising poised for significant growth through 2026.

Conversely, traditional media—television, print, radio, and cinema—are all projected to experience a decline over the same period.

The report highlighted the continued surge of digital advertising, driven by its targeted reach, measurable impact, and interactive capabilities.  

OOH advertising also demonstrates consistent growth, fueled by technological advancements and a resurgence in out-of-home activity post-pandemic.

The decline in traditional media is notable. 

Television's share of the ad market is expected to shrink to 24% by 2025, down from 31% in 2023 and 28% in 2024. 

Print media is projected to see its share decrease to 15% by 2025, from 20% in 2023 and 17% in 2024. 

Radio, which held steady at a 2% share in 2024, is forecast to drop to just 1% by 2025. Cinema, despite modest growth in 2024 likely due to blockbuster releases, faces challenges from inconsistent movie releases, increased competition from streaming platforms, and changing consumer behavior, leading to an anticipated decline in 2025.  

OOH, while still growing, sees a slight slowdown from 12% growth in 2024 to 10% in 2025.

FMCG brands continue to dominate advertising spending, holding a 31% share (Rs 31,467 crore), followed by e-commerce and quick commerce at 15% (Rs 15,509 crore) and consumer durables at 7%.  

In 2024, the travel and transport sector led in advertising expenditure growth (33.4%), boosted by campaigns like ‘Chalo India’ and events like the Maha Kumbh Mela.  

E-commerce (21.1%) and automotive (20.4%) also saw significant growth.  

The automotive sector is expected to continue its upward trend, with two-wheeler brands, especially EVs, making a comeback.  

Other growing sectors include telecom (19.8%), consumer durables (19.4%), and government/social organissations (18%).

Within the digital realm, social media (29% share, Rs 14,480 crore) and online video (28% share, Rs 13,756 crore) are the dominant forces. Paid search accounts for 23% (Rs 11,402 crore), and display banners make up 16% (Rs 7,964 crore). 

Online video is the fastest-growing digital channel, with a projected CAGR of 23.24% through 2026, followed by social media at 20.22% and paid search at 16.85%. By the end of 2025, social media and online video are expected to have equal 30% shares of digital ad spend.  Paid search's share is projected to decline to 22% by 2025, while display banners will hold 15%.

FMCG also leads in digital ad spending (34% share, Rs 16,606 crore), with 13% growth. E-commerce holds a 21% share (Rs 10,131 crore).  Travel and transport saw the highest growth in digital ad spend in 2024 (48%), driven by tourism campaigns. Consumer durables (45%) and government/social organizations (42%) also showed strong growth.

Programmatic buying is projected to reach 42% (Rs 20,686 crore) of digital media spending by the end of 2024, growing to 44% (Rs 30,405 crore) by 2026.

This detailed report underscores the critical need for traditional media to adapt and innovate. The data strongly suggests that the future of advertising in India is firmly rooted in the growth of digital and OOH platforms.

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