Advertising revenue in India is projected to grow at 9.7% to reach INR 2,01,891 crore according to WPP Media's 'This Year Next Year' forecast.

The incremental addition during the year is estimated to be INR 17,844 crore over 2025.

India is ninth in the global advertising market, with the sector representing 0.5% of the country's GDP. 

Overall, digital (including digital extensions of all media) will account for 68.1% of total ad revenue, with content-driven channels contributing 70% and commerce rapidly gaining share.

Channel-wise, commerce-led advertising emerges as the fastest-growing segment at 24.2%, driven by the convergence of retail media, quick commerce, and social commerce. Other digital channels comprising non-search, non-commerce grow at 11.1%, while location-based media such as OOH and cinema expand at 8.9%. 

Intelligence-driven formats, encompassing search (AI-powered), voice, and agentic discovery, is projected to grow by 8%. Print's resurgence continues with 4.4% growth, supported by DAVP price increase and sectoral relevance, while television's growth is to be 3.1% with CTV and addressable advertising. Audio's growth is 1.5%.  

Other highlights of the report:

• AI in advertising is also moving from single tools to networks of specialised agents working together on complex tasks. Instead of one system summarising data, multiple AI agents now collaborate across research, analysis, and execution, mirroring how marketing teams operate. This shift is accelerating campaign planning, consumer insights, and real-time decision-making.
• Consumer discovery is also shifting from keyword searches to conversational answers through AI assistants, forcing brands to optimise not just for visibility but for inclusion in AI-generated responses. This is pushing marketers toward “answer-driven” content strategies rather than traditional search optimisation.
• When it comes to quick commerce, they are also compressing the consumer journey, with purchase decisions often completed in under a minute once intent is triggered. This is shifting advertising from long persuasion cycles to real-time targeting around micro-moments.
• Influencer marketing is simultaneously shifting from mass visibility to community-level credibility, with brands prioritising niche creators who drive trust and conversion across the funnel rather than just reach.

Prasanth Kumar, CEO South Asia, WPP Media, said, "India today stands at a pivotal crossroads where artificial intelligence, commerce, and privacy converge to redefine the very nature of consumer connection. With digital commanding nearly 68% of advertising expenditure, it has become an epicentre of connections, fuelling an ecosystem that is driven by outcomes rather than mere impressions. In this new landscape, the brands which thrive will be those capable of generating demand across the entire ecosystem, orchestrating value at every stage of the consumer journey. The momentum ahead will not be defined by transactions alone, but by transformation that includes a reimagining of how businesses and consumers interact. The true opportunity lies in building an omnichannel journey where discovery, purchase, and post-purchase experiences are seamlessly integrated, and every touchpoint adds tangible value.”

Ashwin Padmanabhan, COO South Asia, WPP Media, added, "The advertising landscape in 2026 will be defined by outcome and intelligence. AI-powered consumer engagement is accelerating outcome driven formats. Quick commerce is at a point of inflection, moving from a sales channel to an important media choice. Our success will be driven by our ability to capture consumers at the intersection of discovery and transaction."

Parveen Sheik, head - business intelligence India, WPP Media, said, "India's advertising market demonstrates dynamism and maturity. At 9.7% growth, we are one of the fastest growing among top markets. The story of 2026 is one of convergence – where media, technology, and commerce become homogenous to deliver for brands. Brands that embrace AI, data intelligence, privacy-first strategies, and agile planning will capture a disproportionate share of this growth."