Digital projected to command 70% of total ad spends by 2027: dentsu-e4m report 

India’s advertising market is no longer in a phase of transition. It is undergoing a structural reconfiguration, one that is being driven decisively by digital media and reinforced by measurable shifts in spending behaviour across formats. 

The dentsu-e4m Digital Advertising Report 2026 lays out a data-backed picture of an industry that has crossed a point of no return.

The most striking indicator of this shift is the steady rise in digital’s share of total advertising spends. From just 12 per cent in 2016, digital is estimated to account for 59 per cent of all advertising expenditure by the end of 2025. The trajectory does not plateau there. 

By 2027, digital is projected to command nearly 70 per cent of total advertising spends in India, signalling not just dominance but structural centrality. The report attributes this sustained momentum to the widespread adoption of digital-first marketing approaches, expanding digital infrastructure, deeper e-commerce integration and a growing emphasis on measurable performance outcomes.

As digital expands, the relative position of traditional media continues to recalibrate. Television’s share of advertising spends is expected to decline from 21 per cent to 15 per cent by 2027, while print is projected to fall from 14 per cent to 10 per cent over the same period. These declines reflect structural shifts in content consumption and advertiser preference rather than short-term market volatility. Reduced time spent, increasing fragmentation and lower attribution clarity are contributing to the gradual erosion of their share.

Out-of-home advertising emerges as a notable exception within traditional formats. The report projects OOH to be the only segment expected to grow over the forecast period, expanding at a compound annual growth rate of 3 per cent and reaching a 4 per cent share by 2027. This growth is supported by the scaling of digital OOH networks, modernised transit infrastructure and rising demand for high-impact urban visibility. Unlike other legacy formats, OOH is benefiting from digitisation that aligns it more closely with contemporary planning and measurement frameworks.

The reallocation of spends is closely tied to changes in audience behaviour and advertiser priorities. The report highlights a decisive movement toward personalised, measurable and commerce-ready media. As audiences migrate to digital video, streaming platforms and short-form content, advertisers are prioritising channels that offer richer engagement and clearer attribution. At the same time, AI-led optimisation and outcome-based planning are increasingly favouring formats that allow real-time measurement and flexibility. In contrast, traditional television and print are seeing reduced time spent and greater fragmentation, which is contributing to their declining share.

The value growth of digital advertising reinforces the depth of this transformation. India’s digital advertising industry grew by 19 per cent in 2024 to close at ₹71,621 crore, firmly establishing digital as the centre of gravity for brand investments. The expansion reflects both the scale of India’s connected population and the increasing sophistication of its digital commerce and content ecosystems. Digital media continues to remain the top ad channel, supported by policy and infrastructure enablers such as DPI, UPI and ONDC, along with MSME digitisation and broadband programmes that are deepening participation and enabling more measurable ad journeys.

These forces are projected to sustain an 18.6 per cent growth rate through 2026, taking digital advertising spends to ₹84,977 crore by year-end. Looking further ahead, the report estimates that digital media will grow at a CAGR of 17 per cent to reach ₹98,034 crore by 2027. At that point, digital is expected to contribute 70 per cent of total Indian advertising spends, marking a definitive shift to a digital-first communication economy.

The surge in digital advertising is being driven by mobile-first usage, short-form video, creator-led commerce and AI-led adtech that is improving targeting and attribution. Regional content, performance marketing and embedded digital payments are further expanding digital’s influence across sectors and geographies.

Taken together, the data signals an industry that is reorienting itself around accountability, precision and scale. The changing media mix reflects not a decline in advertising ambition but a redefinition of how growth is pursued. As digital becomes the default lens through which marketing investments are planned and measured, India’s advertising economy is being reshaped into one where outcomes, agility and digital-led reach increasingly determine value.