Saying digital advertising is growing in India is not analysis anymore. That part is obvious. The real story is that digital ad growth is now reshaping the structure of India’s media business itself. The latest FICCI-EY report says India’s media and entertainment sector reached ₹2.78 trillion in 2025, up 9%, and digital media became the single largest segment for the first time, crossing ₹1 trillion. More importantly, digital advertising alone grew 26% to ₹947 billion, accounting for about 63% of total advertising revenue. That is not just steady growth. That is a power shift.
Once digital takes that much of the ad market, the rest of media has to adjust. Television, print, radio, creators, streaming platforms, sports broadcasters, and publishers are no longer competing inside the same old system. They are being forced to adapt to a market where measurable, performance-linked, commerce-friendly advertising gets priority. That changes what gets funded, how audiences are valued, and which formats become commercially attractive.
Digital Is Not Just Bigger. It Is Becoming the Default
The strongest sign of this shift is that digital is no longer treated as an “additional” ad channel. It is becoming the default planning layer. The Pitch Madison Advertising Report 2026 projected India’s ad market would reach ₹1,74,605 crore in 2026 under its expanded definition, with digital’s share rising to roughly 64%, or around ₹1,11,976 crore. Exchange4Media also reported forecasts showing digital already around 60% of India’s ad market and climbing further. That means advertisers increasingly see digital not as one bucket among many, but as the main route for scalable growth.
That has direct consequences for media companies. If digital is where the money is moving, businesses tied too tightly to legacy formats lose leverage unless they can prove strong cross-screen value. That is why even television is now being discussed through connected TV, integrated campaigns, and digital extensions rather than as a standalone medium. The ad market is not simply growing. It is being reorganized around digital-first logic.
The Revenue Mix Is Changing Across the Industry
This is where the impact becomes more concrete. FICCI-EY said connected TV advertising revenue grew 42% to ₹99 billion in 2025 and could reach ₹164 billion by 2028. It also noted that combined advertising across linear TV and connected TV remained stable at ₹362 billion, which means the money is not disappearing from sight and sound media altogether. It is shifting inside them. That is a crucial distinction. Digital growth is not only killing older formats. In some cases, it is forcing them to become digitally measurable versions of themselves.
Streaming is another example. The same EY material said India’s OTT market crossed ₹272 billion in 2025. That matters because streaming businesses depend heavily on digital ad logic, subscription layering, and audience data. As more money flows into digital and connected formats, media companies with stronger first-party audience relationships and sharper targeting tools gain an advantage over those still relying mainly on broad, undifferentiated reach.
Table: What Digital Ad Growth Is Changing in India’s Media Business
| Area | Current evidence | What it means |
|---|---|---|
| Overall media economy | M&E reached ₹2.78 trillion in 2025 | Ad growth is helping reset the whole sector. |
| Digital ad revenue | Digital advertising grew 26% to ₹947 billion | Digital is now the main ad-growth engine. |
| Share of ad market | Digital accounted for about 63% of ad revenue in 2025 | Most new ad money is flowing into digital formats. |
| Connected TV | CTV ad revenue grew 42% to ₹99 billion | TV is being reshaped by digital behavior, not simply replaced. |
| Influencer marketing | Sector projected to reach ₹3,375 crore by 2026 | Creator-led advertising is becoming more structured and important. |
| 2026 outlook | PMAR forecast digital AdEx at about ₹1.12 lakh crore in 2026 | The shift is still accelerating, not slowing. |
Why Publishers, Creators, and Entertainment Companies Care
Publishers care because digital advertising rewards measurable audience behavior, not just bulk traffic. That makes cheap pageview strategies weaker over time unless they can convert attention into usable ad value. Creators care because digital ad growth increasingly supports influencer marketing, branded content, affiliate commerce, and platform-led monetization. EY has already projected India’s influencer marketing sector at ₹3,375 crore by 2026, showing that creator-led ad formats are becoming a real part of the ad economy, not a side experiment.
Entertainment companies care because high-impact properties still attract premium money, but increasingly through cross-screen packaging. A recent JioStar-BARC-Nielsen study around the ICC Men’s T20 World Cup 2026 found low overlap between TV and digital ad reach and strong incremental reach when both were combined. That tells you something important: advertisers are no longer thinking in strict TV-versus-digital terms. They are buying audience systems that stretch across both.
Why This Growth Also Changes Content Decisions
Ad growth influences content more than media companies like to admit. When digital becomes dominant, formats that support measurable engagement and flexible targeting get favored. That is one reason why short mobile-native formats, creator-led content, and new video categories are gaining commercial interest. Lumikai’s recent projection that micro dramas could become a $4.5 billion market by 2030 is one example of how ad-friendly, mobile-first content categories attract attention when audience behavior and monetization models line up.
This does not mean everything becomes shallow performance content. But it does mean media businesses increasingly prioritize content that fits digital consumption patterns, ad measurement needs, and commerce potential. If a format is expensive, hard to target, and weak on measurable outcomes, it becomes harder to defend in a digital-heavy ad market. That is the uncomfortable economic reality underneath all the “content strategy” talk.
Conclusion
Digital advertising is reshaping India’s media business again because it is no longer just the fastest-growing piece of the market. It is the organizing logic of the market. With digital ad revenue at ₹947 billion in 2025, about 63% of total ad revenue, and forecasts pointing to even higher digital share in 2026, the business of media in India is being rebuilt around digital measurement, digital distribution, and digital monetization.
The blunt truth is simple. Publishers, creators, streamers, and broadcasters are not operating in parallel worlds anymore. They are all being pulled into the same digital ad economy. Some will adapt by building stronger audience value and cross-screen relevance. Others will keep pretending old media economics still work. Those are the ones likely to get squeezed.
FAQs
How big is digital advertising in India right now?
FICCI-EY said digital advertising reached ₹947 billion in 2025, growing 26% year on year.
What share of India’s ad market does digital now hold?
Digital accounted for about 63% of total advertising revenue in 2025, according to the FICCI-EY report.
Is television losing all ad relevance because of digital?
No. The money is shifting inside TV too. Connected TV ad revenue grew 42% to ₹99 billion in 2025, showing TV is being reshaped by digital rather than simply erased by it.
Why does digital ad growth matter for creators?
Because it supports growing areas like influencer marketing, branded content, and measurable campaign partnerships. EY projected India’s influencer marketing sector could reach ₹3,375 crore by 2026.