India’s digital ad market set to grow 15% annually: Bain & Company report

India’s digital advertising market is poised for accelerated growth, with Bain & Company’s latest report on ‘Advertising in the Digital Age in India and Around the World’ forecasting a compound annual growth rate (CAGR) of around 15% between 2024 and 2029, reaching around $19 billion. 

The surge will be driven by higher media consumption, new platform innovation, and deeper internet access across both metro and non-metro markets.

According to the report, India’s advertising industry has already crossed the ₹1 lakh crore mark, with digital contributing close to half of all spending. Television and print continue to retain significant market share, but digital is on track to become the largest advertising channel within the next few years.

Mobile remains a critical opportunity as the report highlights a significant gap between consumer time spent and advertiser spend. While mobile accounts for nearly a quarter of media consumption, it attracts only about 13% of marketing budgets globally. In India, where consumers check their phones hundreds of times a day and rely on them for both entertainment and purchase research, brands that adopt a mobile-first approach stand to gain outsized returns.

Simultaneously, capturing consumer attention is becoming harder than ever, as B&C’s findings show that almost 75% of media consumption happens while users are multitasking. This fragmentation means advertisers can no longer rely solely on impressions or reach as success metrics. The focus is shifting towards attention-based measurement and quality engagement, with context and creative relevance becoming more important for campaign effectiveness.

Video is another growth engine, as more than 550 million smartphone users now spend over an hour each day on online video in India, with short-form content driving the bulk of new consumption. Social media networking platforms like YouTube Shorts, Instagram Reels, and other homegrown apps are shaping the digital storytelling playbook for advertisers altogether. Conversational commerce is also growing rapidly, as social media and messaging platforms evolve into discovery and transaction hubs for e-commerce platforms like Amazon, Flipkart, and, more importantly, food delivery platforms.

Bain’s report also points to the rise of regional language content, with nearly 90% of new internet users consuming digital media in vernacular languages. This trend is compelling brands to rethink campaign strategies, invest in regional influencers, and adopt localised storytelling to connect with India’s diverse consumer base.

The findings come at a time when India’s broader internet economy is expected to reach $1 trillion by 2030. With quick-commerce platforms, retail media networks, and AI-powered targeting reshaping the digital landscape, the next five years will be pivotal for marketers. Advertisers who now embrace mobile-first strategies, regional storytelling methods, and attention-led measurement frameworks will be best placed to tap into this growth. As the report underlines, India is rapidly becoming one of the most dynamic advertising ecosystems in the world.