India's advertising industry may see marginal, digital-led growth in 2026

Muted 2025 trends, an RMG ban and slow traditional media growth point to low single-digit expansion in 2026, with digital advertising expected to remain the strongest and most resilient growth driver

The overall advertising industry is likely to see low- to mid-single digit growth in 2026 driven by the digital segment, after witnessing a muted growth in the first half of this year marked by a ban on the real money gaming (RMG), industry executives believe.

 

The digital segment is expected to grow in double digits as its contribution continues to grow and now contributes to nearly half of the total advertising spends. Close to 45 to 55 per cent of corporate firms in the country prefer the digital medium for advertising, as per an industry executive.

 

“For 2026, we expect the outlook to be marginally better than this year, led by a more confident consumption environment and increased brand play in content, sports, and digital ecosystems,” said Uday Mohan, chief operating officer (COO), Havas Media India and Havas Play.

 

This year will close at mid-single digit growth for the industry, he added.

 

In February, India’s advertising industry was projected to grow at 6.5 per cent in 2025 to reach a market size of ₹1.1 trillion by the end of the year, majorly led by the digital segment, according to Dentsu e4m Digital Report 2025.

 

Shibu Shivanandan, founder and chief executive officer (CEO), PivotRoots, a part of Havas Media Network, said that the digital segment is expected to have about 46 per cent of total advertising spend, growing at a projected 12 to 14 per cent compound annual growth rate (CAGR).

 

In 2025, the majority of the growth was observed in digital-first categories such as financial technology, e-commerce, and direct-to-consumer-led fast-moving consumer goods (FMCG) brands, Mohan said.

 

For the next year, traditional segments (like linear TV, OOH, radio, print) are expected to grow in low to mid-single digits, while TV and outdoor advertising segments will continue to benefit from high-impact events and regional reach.

 

Meanwhile, the FMCG sector, which is also the largest spender in terms of advertising, will take some time to readjust to the new pricing after the recent goods and services tax (GST) rationalisation.

 

According to TAM Media Research, FMCG, retail, e-commerce, automobile, and banking, financial services and insurance (BFSI) are expected to remain the largest contributors for advertising volumes in 2026, while digital heavy sectors are likely

to further increase their share compared with this year.

 

“E-commerce will continue expanding at over 20 per cent, while quick commerce remains the fastest-growing discovery and conversion engine. With AI (artificial intelligence), data, and measurement rapidly maturing, 2026 will be a defining year for accountable, outcome-led digital growth. The DPDP (Digital Personal Data Protection) Act will further accelerate the shift toward first-party data, consent-led marketing, and privacy-safe measurement, pushing brands to invest in durable data foundations, clean rooms, and predictive models that unlock both efficiency and profitability,” Shivanandan said.

 

Corroborating with Shivanandan, Anshu Yardi, vice president, business partnerships and communication, TAM Media Research, said that the digital segment is expected to continue to outpace the overall industry’s growth. He added that acceleration in digital adoption and brand investments will also act as positive drivers next year.

 

“The beginning of this year, the forecast was that the ad industry would grow in the range of seven to eight per cent. This was revised a bit lower in mid-2025. Next year will follow the same trend as 2025,” said Navin Khemka, president, client solutions at WPP Media South Asia.

 

Khemka said that after the government implemented the Promotion and Regulation of Online Gaming Act, 2025, the advertising industry is resetting itself and that the industry will first have to absorb the loss in advertising expenditure from this segment. Earlier, the long-term impact on advertising spends in India from the RMG ban was estimated to be between ₹18,000 crore to ₹20,000 crore.