GroupM’s TYNY 2025: India’s advertising market to grow 7%

GroupM, the media investment arm under WPP, has unveiled its latest This Year Next Year (TYNY) advertising forecast, offering key insights into the trajectory of India’s ad industry in 2025. The report projects a 7% growth in advertising expenditure this year, with the market set to reach Rs 1,64,137-crore — adding an incremental Rs 10,730 crore.

One of the most striking revelations from the TYNY 2025 report is the growing dominance of digital media, which now commands over 60% of total ad spend. This shift is being fuelled by advancements in artificial intelligence (AI), the surge of retail media, and the rise of immersive technologies. As AI takes centre stage, it is driving automation, hyper-personalisation, and content generation, fundamentally altering how brands engage with consumers.

Prasanth Kumar, CEO, GroupM South Asia, highlighted the pace at which India’s marketing landscape is evolving. "India is at the forefront of a marketing revolution driven by AI and data privacy. As global ad spend surpasses $1 trillion, India emerges as a top-four growth market, with digital now accounting for over 60% of ad spend. With a shift to personalised engagement, commerce-driven marketing, and responsible innovation, mixed reality and immersive tech fuel experiential content," he said.

Key industry shifts defining 2025

The TYNY report identifies ten major industry shifts that are shaping the future of advertising and marketing in India. AI-powered marketing and automation are poised to revolutionise the industry, with AI-driven systems expected to take over campaign management, content creation, and media optimisation, making marketing increasingly autonomous and data-driven. Retail media is also on a steep growth trajectory, with advertising in this space projected to contribute 13.2% of total ad spend, driven by an impressive 40% compound annual growth rate (CAGR) since 2019.

Connected TV (CTV) is another area of rapid expansion, with the number of CTV households expected to exceed 65 million, as streaming captures 13% of total TV ad expenditure. Alongside this shift, India’s position as the world’s third-largest online shopper base is reshaping advertising strategies, with quick commerce emerging as a dominant force in e-commerce.

At the same time, data privacy and measurement challenges continue to evolve, leading to the growing adoption of data clean rooms, AI-enhanced attribution models, and integrated measurement frameworks that redefine how brands track campaign effectiveness.

AI-driven influencer marketing is also gaining prominence, with virtual influencers and AI-generated content redefining brand storytelling. These AI-powered personas offer a highly scalable and culturally relevant engagement tool, enabling brands to connect with consumers in novel ways. Programmatic advertising is evolving as well, with AI and machine learning enhancing efficiency and allowing advertisers to dynamically optimise their media spend.

Traditional media is undergoing shifts of its own, with digital continuing its dominance while TV ad revenue is projected to decline by 1%. Print, however, is expected to see a modest resurgence, with ad expenditure set to grow by 4%.

Meanwhile, sectors such as small and medium enterprises (SME), banking, financial services and insurance (BFSI), and real estate are playing a crucial role in driving ad spend, alongside education and technology/telecom. Collectively, these sectors are expected to contribute 60% of total advertising and grow at an estimated 10%.

Finally, emerging categories such as electric vehicles, fintech, and gaming are accelerating market expansion, presenting new opportunities for brands looking to tap into high-growth segments. With these transformations underway, India’s advertising landscape is entering a new era, defined by AI, digital commerce, and data-driven marketing strategies.

AI: The game-changer in advertising

AI’s role in advertising is evolving from content generation to autonomous decision-making. Parthasarathy Mandayam, chief strategy officer—South Asia at GroupM, noted, "In 2024, AI-driven models became widespread for content generation and workflow automation. In 2025, we are entering an era of AI-driven autonomous decision-making, where AI will optimise campaigns, media investments, and content strategy in real time."

Marketers are rapidly integrating AI into media planning, vernacular engagement, hyper-personalisation, and customer service automation. AI-driven influencer marketing, in particular, is changing brand-audience interactions.

"AI-driven influencers are redefining storytelling. With their ability to be always-on, brand-safe, and culturally relevant, they offer brands an unprecedented level of personalisation and engagement," said Vinit Karnik, managing director—content, entertainment, and sports at GroupM.

Retail media and quick commerce are reshaping advertising investments, forcing brands to recalibrate their strategies. Atique Kazi, president—data, performance, and digital products at GroupM, explained the impact of this shift, "Retail media has been growing at 40% CAGR and is no longer just an advertising channel—it’s a key driver of omnichannel retail strategies. Quick commerce is also disrupting traditional retail models, with brands optimising for hyper-local, real-time demand."

Data privacy and measurement: The new competitive edge

With increasing concerns over data privacy and fragmented measurement techniques, marketers are turning to integrated measurement frameworks. Parthasarathy Mandayam stressed the importance of evolving measurement strategies.

"With fragmentation and privacy regulations, traditional tracking methods are becoming obsolete. Marketers must now combine market mix modelling, multi-touch attribution, and clean room analytics to measure true impact," he added.

Priti Murthy, President, GroupM Nexus, further elaborated on the role of data clean rooms. She noted that marketers are rapidly migrating to data clean rooms, not just for privacy compliance, but to drive richer audience insights and precision marketing. She added that publishers are also benefiting, as they curate audience segments within privacy-safe environments, unlocking new revenue streams.

Traditional media’s role in a digital-first world

Despite digital’s dominance, traditional media retains relevance. According to GroupM, TV and digital together account for 86% of total ad spend, with streaming TV making up 12.6% of total TV ad revenue.

Ashwin Padmanabhan, chief operating officer, GroupM, observed, "India’s advertising ecosystem is being reshaped by digital dominance and shifting consumer behaviours. Digital and TV together account for 86% of total ad spend, with streaming TV now making up 12.6% of total TV ad revenue—signalling a critical shift for brands to optimise across high-growth platforms."

While TV ad revenue is set to decline by 1%, print advertising is forecasted to grow by 4%. Out-of-home (OOH) and cinema advertising are expected to grow by 8% and 10%, respectively.

With India’s GDP projected to grow by 6.5% in 2025, the advertising market remains resilient, ranking ninth globally. Parveen Sheik, Head of Business Intelligence, GroupM, provided further insights: "Digital ad spends are now close to Rs 1 lakh crore, driven by AI, commerce, retail media, and hyper-personalisation marketing. As the economy grows, brands must embrace agility, data intelligence, and sustainable strategies to maximise impact in this dynamic landscape."

Despite global economic uncertainties, India’s advertising sector is set for continued expansion, with digital media, AI-driven commerce, and CTV leading the transformation. With rapid advancements in retail media, quick commerce, and influencer marketing, 2025 will be a defining year for brands and marketers navigating this evolving landscape. The key to success lies in embracing data-driven insights, AI-powered automation, and a seamless blend of digital and traditional media strategies.