dentsu-e4m Report: Online video poised to reach 30% share of digital ad market by 2025

The report also highlights that the online video segment will have a CAGR of 23% through 2026, surpassing social media (CAGR 20%) and paid search (CAGR 17%)

by e4m Staff
Published: Feb 3, 2025 3:04 PM | 2 min read

Online video advertising is rapidly emerging as India's fastest-growing digital ad format, currently holding a 28% share of the market at Rs 13,756 crore, according to the latest e4m Dentsu 2025 report. With an impressive growth rate of 27.60%, it is expected to capture a 30% share by the end of 2025.

“The consistent and rapid growth of online video and social media underscores the increasing focus of brands on engaging consumers and strengthening brand-consumer connections. By the end of 2025, we expect social media to grow at a rate of 21.67% to reach a spends share of 30%,” the report states.

The surge in online video advertising is being driven by the increasing adoption of short-form content, live-streaming, and interactive video experiences. The report highlights a robust compound annual growth rate (CAGR) of 23.24% through 2026, surpassing social media (CAGR 20.22%) and paid search (CAGR 16.85%). As brands shift their focus from traditional display ads to engagement-driven formats, online video is becoming the preferred choice for marketers looking to build stronger brand-consumer connections.

Social media retains leadership, but video is closing in

Currently, social media dominates digital ad spends with a 29% share (Rs 14,480 crore), closely followed by online video at 28%. However, given its accelerated growth, online video is projected to reach parity with social media by 2025.

Meanwhile, paid search, despite growing at 15.93% in 2025, is expected to see its market share decline from 23% to 22%. Similarly, display banners, despite growing at a rate of 15.15%, will witness a dip in share from 16% to 15%.

The dominance of video content is fueled by increased smartphone penetration, affordable data rates, and a rising preference for video consumption across both urban and rural India. Streaming platforms and social media giants are doubling down on video-based advertising solutions, further accelerating the sector’s expansion.

To read the full report, click here.