28% share, Rs 20,004 cr spend: Is online video becoming the engine of digital media plans?

Online video is tightening its grip on India’s digital advertising landscape, cementing its position within the ad pie and reshaping media strategies across sectors. In 2025, online video commands 28% of total digital ad spends, translating into Rs 20,004 crore, riding on the growth of OTT platforms, short form content ecosystems and mobile first video consumption. While its percentage share remains unchanged from 2024, the trajectory ahead signals a decisive shift in balance within the digital ecosystem.

In 2024, online video accounted for 28% of digital ad spends at Rs 13,756 crore. The jump to Rs 20,004 crore in 2025 reflects not just organic growth in digital advertising but a structural reallocation of budgets toward video led formats.

The e4m dentsu Digital Advertising Report projects that by the end of 2026, online video’s share will inch up to 29%, and by 2027, it is expected to touch 30%, overtaking social media to become the largest segment within digital advertising.

The stability of the 28% share between 2024 and 2025 may appear modest, but industry observers note that maintaining share amid rapid expansion of the overall digital pie is significant. Digital advertising in India continues to grow across search, social commerce media and emerging formats. That online video has held its ground while expanding sharply in absolute value suggests sustained advertiser confidence in the medium.

The surge is closely linked to the maturation of OTT ecosystems and the mainstreaming of connected TV. Premium long form content, live sports streaming and regional language programming have widened the advertiser base. At the same time, short form video platforms have captured younger audiences with algorithm driven content that delivers both scale and frequency.

A media agency official said the shift is no longer experimental.

“Five years ago, brands were allocating incremental budgets to online video as a test and learn strategy. Today it is central to digital planning. The combination of high reach, better targeting and improved measurement has made video a default choice not an optional add on.”

Manesh Swamy, Co Founder and CCO, First AI Consultancy, said advertisers are adding nearly Rs 7,000 crore more to online video for one simple reason that video has become the “Baahubali of outcomes.” It is one of the few digital formats that can deliver mass reach, brand building and performance within the same plan.

He said that today CTV, OTT and YouTube offer scale that feels almost TV like but with digital intelligence layered on top through targeting, frequency control and sequential storytelling.

“That combination is hard to ignore. At the same time short form video has quietly become the internet’s default attention unit. Even when a media plan says social a large chunk of that money is effectively flowing into video. In many ways video is no longer a line item it is the backbone,” he said.

Sectoral data further underlines the format’s dominance. The media and entertainment sector allocated 38% of its total digital ad spends to online video. The telecom sector spent 29% of its digital budgets on online video matching its allocation to social media at 29%. FMCG made the strongest pivot with 45% of its digital ad spends going to online video. The auto sector allocated 27% while the education sector spent 37% on the format.

For FMCG brands video bridges mass storytelling and targeted outreach through regional content and creator led ecosystems. Automotive brands rely on video to showcase design, features and performance. In education explainer content and testimonial driven campaigns thrive on video engagement. Telecom brands use video to demonstrate network strength, 5G capabilities and bundled content propositions.

A senior marketing executive said the evolution is also about accountability. “Earlier digital video was often clubbed with experimental budgets. Now it sits in core allocations.”

Mobile-first consumption remains a fundamental driver. India’s vast smartphone base, affordable data and integration of video across social and commerce platforms have made video the dominant form of online engagement, experts said, adding that consumers are watching long form content on OTT apps while also consuming product reviews, influencer integrations and live commerce streams in video format.

The projected climb from 28% in 2024 and 2025 to 30% by 2027 signals more than incremental growth. In a market of this scale each percentage point represents thousands of crores in reallocated budgets. As overall digital spends continue to expand the absolute value attached to online video is expected to rise sharply, industry observers said.

If projections hold 2027 will mark a symbolic turning point when online video overtakes social media in share. More importantly it will underline a broader shift in India’s digital economy.