In the 2024-25 financial year, India's tech and e-commerce companies earned approximately ₹80,000 crore in advertising revenue. In the previous financial year, this figure was approximately ₹66,000 crore. This data highlights that digital advertising is becoming the main driving force in the advertising world. Brands are now spending more on data-driven platforms where results can be easily measured.
Both large corporate companies and small-to-medium enterprises are increasing their advertising spending. Nearly half of the total advertising expenditure on digital platforms comes from small and medium enterprises. Google and Meta have a significant presence in India, especially among Gen Z users. Meanwhile, Amazon and Flipkart are drawing additional budgets for advertising because these platforms are directly linked to sales. Video content is now a major driver of revenue from Google and Meta's advertising.
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Google and Meta dominate India’s digital ad market
According to Tofler data, Google India earned ₹34,742 crore from advertising in the 2024-25 financial year, which increased by 11.3 per cent over the past year. Meta India's revenue increased by 29 per cent to ₹29,392 crore. Instagram, Reels, and WhatsApp played major roles in this growth.
Quick commerce has also become a major advertising medium now. Uday Sodhi, partner at Curate Digital Consulting, said that advertisers are shifting budgets from TV to digital, the impact of which is clear in Google and Meta's results.
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Ads spend splinters across multiple digital channels
Anand Chakravarti of Omnicom Media India said that digital advertising is now being divided among search, social, OTT, connected TV, e-commerce, and quick commerce. Many small and medium businesses that were not in traditional media before are now coming to digital.
Google India paid ₹32,047 crore to Google Asia Pacific for purchasing advertising space in 2024-25. Meta India spent ₹23,248 crore as royalty and infrastructure charges during the same period.
Bain & Company's report says that India's advertising market was valued at $16–18 billion in 2024. This market could grow at a rate of 10 to 15 per cent annually in the coming days. Digital advertising accounts for 50 to 60 per cent of total spending and could nearly double to reach $17–19 billion by 2029.
