Digital ad spends to soar thanks to OTT, e-retail

STREAMING PLATFORMS NOW REACH NEARLY 70% INTERNET USERS IN INDIA

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When Ambika Sharma launched her digital agency Pulp Strategy 15 years ago India's total digital advertising market was barely ₹3,000 crore. But she placed her bet on the medium, offering brands specialized services in MarTech, content, and digital transformation. "Our growth consistently outpaced that of the industry," said Sharma. Russhabh Thakkar's Frodoh World was launched much later in 2019 but like many smaller independent agencies, it, too, has benefited from the exponential rise in digital advertising expenditure, expanding its client list and dabbling in retail media and connected TV advertising.

Dentsu and e4m's Digital Advertising Report 2025 released on Monday, offers a glimpse of the sector's leap. From ₹6,000 crore in 2016 to ₹69,856 crore expected in 2026 is how digital ad spend is moving. Correspondingly, its share in overall advertising will jump to 61% in 2026 versus 12% in 2016. The medium will end 2025 with ₹59,200 crore in advertising.

The Dentsu e4m report analyses the segments within digital that are driving its growth leaving traditional media like television and print far behind. So, Google and Meta are not the only valued advertising platforms as retail media and over-the-top (OTT) video streaming platforms draw a big chunk of ad money.