New Delhi, Aug 26 (IANS) India’s advertising market — valued at $16-$18 billion in 2024 and contributing around 0.4 per cent to GDP — is projected to grow at 10-15 per cent compound annual growth rate (CAGR), reaching about 0.5 per cent of GDP by 2029 and making it one of the fastest-growing digital ad markets globally, a report said on Tuesday.

Digital advertising contributes 50-60 per cent of India’s total ad spend and is expected to grow at 15 per cent CAGR through 2029 to reach $17-$19 billion, Bain & Company said in its report.

According to the report, this growth is fueled by rising private consumption, high digital consumption, rapid OTT adoption, and widening high-speed Internet coverage.

Small and medium enterprises (SMEs) and direct to consumer (D2C) brands are emerging as key drivers of India’s digital advertising economy, with their contribution to the nation’s digital ad spends rising from 35 per cent in 2020 to 37 per cent in 2024, and projected to reach 40–42 per cent by 2029, with growth being led by mobile-first marketing strategies, deeper e-commerce integration, and a strong focus on ROAS (Return On Ad Spend)- driven performance marketing, the report stated.

“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,” said Prabhav Kashyap, Partner at Bain & Company.

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.

The report claimed that the global advertising market is also undergoing a historic transformation, with digital advertising set to reach 80–85 per cent of total ad spend by 2029.

“The global market, which is currently valued at $1 trillion in 2024, will expand to 1 per cent of global GDP by 2029, outpacing economic growth in both mature and emerging economies,” the report highlighted.

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

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

As per the report, 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).

–IANS

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