India's Advertising Revolution: Digital Dominance and the Decline of Traditional Media

India's advertising industry has experienced a significant shift, with digital platforms taking center stage. According to Crisil Ratings, the market achieved a compound annual growth rate of 6-7% over the past five fiscal years, crossing the Rs 1 lakh crore milestone in 2024-25.

In a detailed report, Crisil highlighted digital advertising as the fastest-growing segment, now representing 45-46% of total ad spending, substantially up from 24% in fiscal year 2020. The forecast for the current year suggests further expansion of digital media, expected to grow by 9-11%, while traditional media remains stagnant.

This transformation is evident in various sectors. Fast-moving consumer goods, automotive, and e-commerce businesses have increased their digital ad budgets significantly. Pushan Sharma, Director at Crisil Intelligence, remarked on this irreversible trend, indicating a focused move towards digital-first strategies by brands, enhancing targeting efficiency and engagement.

(With inputs from agencies.)