AI drives surge in India’s digital ad spending: Report – Digital Transformation News

Digital ad spending in Asia-Pacific markets like India is forecasted to increase by 5.8% in 2025, according to the Dentsu Global Ad Spend Forecasts report. AI-driven ad placements are contributing to the rise, the report said. It also projects the global advertising market to grow 6.8% year-over-year in 2024, closing at $772.4 billion.

Globally, the Americas are anticipated to lead global ad spend growth in 2025, with a 6.3% increase driven by strong digital and streaming investments in the US and Brazilian markets. In EMEA, growth is projected at 5%, supported by robust digital performance in leading markets like the UK.

According to the report, digital will continue to be the fastest-growing advertising channel, with a projected 9.2% increase in 2025 and an 8.8% compound annual growth rate (CAGR) through 2027. By then, digital ad spend is expected to reach $513 billion, accounting for 62.7% of the global market. Retail media is set to drive this growth, with a year-over-year increase of 21.9% (19.7% CAGR to 2027), as advertisers leverage retailer consumer data and expand investments in offsite channels like connected TV.

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Anita Kotwani, CEO – Media, South Asia, dentsu says, “As digital channels continue to lead the way, the global advertising landscape is entering a new phase of growth and innovation. As algorithmic media capabilities take center stage, brands have an unprecedented opportunity to connect with consumers in more personalised and meaningful ways. The future of advertising is not just digital – it’s deeply connected, data-empowered, and poised for transformative growth.”

Meanwhile, paid social ad spend is projected to grow by 8.7% in 2025, with a three-year compound annual growth rate (CAGR) of 7.8% through 2027. This growth is fueled by an integrated ecosystem combining shopping, video, search, and gaming features. The channel remains vital for engaging younger audiences, with 79.7% of Gen Z using Instagram monthly and 42% of CMOs planning to increase influencer marketing budgets.

Online video advertising is expected to grow by 8% as brands prioritise high-attention, trusted environments. Programmatic advertising will see an 11.1% increase in 2025, accounting for more than 70% of digital ad spend, with a 10.9% CAGR through 2027.

Finally, television ad spend is forecast to grow modestly by 0.6% in 2025, with connected television (CTV) leading at +18.4%, driven by the rise of ad-supported streaming, while broadcast television continues to decline (-2.5%). Print media remains in decline, while cinema and out-of-home (OOH) advertising are expected to grow by 3.2% and 3.9%, respectively.

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