India’s search ad revenue to cross Rs 20,538 crore in 2025: Report

India’s digital advertising landscape is set for another milestone in 2025, with search ad revenue projected to reach a record Rs 20,538 crore, according to the latest MAGNA report. This marks an 8.9% year-on-year growth, cementing search as a foundational pillar of the country’s rapidly evolving ad ecosystem.

Despite a slight deceleration from the 10.3% growth seen in 2024, search advertising will continue to command a robust 15% share of India’s total advertising expenditure (AdEx). The overall ad economy is forecast to expand by 7.8% in 2025, reaching ₹1,371 billion, with digital pure players now accounting for more than half of all ad spend. This digital dominance was first established in 2024, when digital advertising overtook traditional media for the first time.

The MAGNA report highlights that digital adex will rise by 12% in 2025 to Rs 728 billion, while traditional media is expected to see a modest 3.4% increase, reaching Rs 643 billion. Social advertising is advancing rapidly and is poised to overtake television as the largest format within the next five years. The trio of video, social, and retail media is expected to drive the bulk of AdEx growth, reflecting a broader shift in consumer behavior and media consumption patterns.

Hema Malik, Chief Investment Officer at IPG Mediabrands India, notes in the report that 2025 will see “above average ad spend resilience,” with dynamic growth anticipated in sectors such as finance, media, pharma, technology, gaming, and retail. In contrast, automotive and electronics may lag behind. The report also points to the transformative impact of live sports streaming, which is drawing audiences away from linear TV and fueling the growth of ad-supported streaming platforms. Long-form video, in particular, is growing at over 25% annually and is expected to capture a double-digit share of the video ad market within three years.

India’s economic outlook remains positive, buoyed by strong domestic demand, government investment, and a thriving services sector. As the world’s fourth-largest economy, India’s advertising market is on track to become one of the top ten globally. The resilience and innovation in digital advertising—especially in search—underscore the sector’s pivotal role in shaping the future of Indian media and marketing.