New Delhi [India], August 4 : India's advertising market logged a compound annual growth rate of 6-7 per cent over the past five fiscals and crossed the Rs 1 lakh crore mark last fiscal - 2024-25, according to Crisil Ratings.
According to the Crisil report, digital advertising emerged as the fastest-growing segment, accounting for 45-46 per cent of the total ad spend, up from 24 per cent in fiscal 2020.
In the current fiscal, the gap between traditional and digital media is expected to widen, with the latter likely to grow 9-11 per cent, while traditional media flatlines.
"This signals an ongoing transformation in how India has been consuming content," Crisil said.
In fiscal 2020, traditional media, such as television (TV) and print, held nearly 65 per cent market share, which dropped to 46-47 per cent last fiscal.
The TV industry is under attack from two flanks broadcasters are losing ad revenue as viewers shift to over-the-top (OTT) platforms and distribution networks are losing subscribers to optic fibre-based services.
The direct-to-home industry alone lost over 10 million subscribers between December 2020 and 2024, the Crisil report noted.
The print media is grappling with stagnant circulation, rising preference for digital news applications and a clear shift of advertisers towards digital platforms. Overall readership fell 500 basis points between fiscals 2020 and 2025.
Pushan Sharma, Director, Crisil Intelligence, "The shift is evident in the ad spend patterns of major consumer-facing sectors such as fast-moving consumer goods (FMCG), automobiles and e-commerce. FMCG companies now allocate 55-60 per cent of their ad budgets to digital, up from 30 per cent in fiscal 2020."
Looking ahead, the trend in ad spend appears irreversible as traditional players are also stepping up on digitalisation. Digital platforms offer sharper targeting, a micro-market approach and better cost efficiency. Creator-led content also brings higher engagement and relatability, making digital outreach more effective and measurable. As a result, brands are steadily moving towards digital-first strategies, marking a shift in India's advertising landscape.
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