India's Ad Market Hits ₹1.55 Lakh Crore: Digital Now 60%
Key Takeaways:
India's ad market reached ₹1,55,105 crore in 2025 under expanded definition
Digital now accounts for 60% of total ad spend (₹93,156 crore)
Quick commerce advertising grew 202% to ₹4,000 crore
Linear TV declined 5%, but CTV doubled to ₹6,000 crore
Market projected to hit ₹1,74,605 crore in 2026 with digital at 64%
India's advertising market has crossed a structural threshold. According to the Pitch Madison Advertising Report 2026, digital media now accounts for 60% of total ad spend, up from 46% on legacy measurement.
The shift isn't gradual anymore. It's decisive.
The new market sizing
Madison World's report introduces an expanded definition that includes quick commerce advertising and MSME digital spends. Under this framework, India's ad market reached ₹1,55,105 crore in 2025, growing 12% over 2024.
Digital ad spend hit ₹93,156 crore, up 22% year-over-year. Traditional media declined 1% to ₹61,949 crore.
On the legacy definition used in previous years, the market grew 7% to ₹1,15,291 crore with digital at 46%.
The difference reflects where growth is actually happening: in ecosystems that weren't previously counted.
3 engines driving growth
PMAR 2026 identifies three structural forces reshaping Indian advertising.
1. Large screen evolution (TV + CTV)
Linear TV ad spend fell 5% to ₹32,855 crore. Ad volumes dropped 10%, driven by FMCG budget cuts and smaller advertisers exiting.
But when connected TV is included, "large screen" advertising grew 4% to ₹38,855 crore. CTV alone doubled to ₹6,000 crore in 2025. For 2026, Madison projects large screen to reach ₹40,855 crore, with CTV hitting ₹8,000 crore even as linear TV stays flat.
Video budgets aren't leaving television. They're redistributing toward CTV and premium sports properties.
2. Quick commerce and retail media
E-commerce and retail media advertising reached ₹10,257 crore in 2025, growing 27% year-over-year.
Quick commerce advertising exploded. Platforms like Blinkit, Zepto, and Swiggy Instamart scaled from ₹1,325 crore to ₹4,000 crore, a 202% jump.
Madison projects quick commerce ad spend to hit ₹6,000 crore in 2026, up 50%.
Together, retail media and quick commerce form what the report calls a "media-to-money" engine, where advertising directly connects to transactions.
3. MSME digital adoption
MSME digital advertising reached ₹35,814 crore in 2025, up 21%. Madison projects it to hit ₹42,976 crore in 2026.
These small and mid-sized businesses now represent 38% of core digital ad spend. Collectively, they're almost as large as linear TV or print as standalone media.
India's digital ad growth is no longer driven solely by large brands. Millions of smaller businesses are adopting performance-led marketing.
What the projections show
Madison forecasts India's ad market to reach ₹1,74,605 crore in 2026, implying 12-13% growth. Digital's share is expected to climb to 64%. A separate WPP Media report projects the market at ₹2.01 lakh crore using different methodology, with digital at 68%.
Both agree on the direction: digital dominance will accelerate.
What this means for marketers
The data suggests several planning considerations:
CTV deserves dedicated strategy: With ₹8,000 crore projected for 2026, connected TV is no longer experimental
Quick commerce is a media channel now: Brands should evaluate Blinkit, Zepto, and Swiggy as advertising platforms, not just sales channels
Linear TV still delivers scale: Premium sports and impact properties remain effective for mass reach
MSME competition is increasing: Smaller advertisers are buying the same digital inventory as larger brands
The traditional-to-digital shift is complete. The next phase is about which digital channels win.