India’s ad spend to reach 0.5% of GDP by 2029: Bain

India’s advertising spend, which currently stands at about 0.4% of GDP, is expected to rise to nearly 0.5% by 2029, mirroring the trajectory seen in other large economies, according to Bain & Company’s new report Advertising in the Digital Age, in India and Around the World.

China’s advertising outlay as a share of GDP climbed from around 0.5% to 0.8% between 2015 and 2020, while Japan’s increased from 0.7% to approximately 1% between 2019 and 2024.

The report said that this expansion will position India among the fastest-growing advertising markets globally, powered by rapid digital adoption, robust private consumption, and the scaling of OTT platforms alongside widening high-speed internet coverage.

Global Market Transformation

The report notes that the global advertising market, valued at nearly $1 trillion in 2024, is projected to expand to roughly 1% of global GDP by 2029. Digital channels will dominate, accounting for 80–85% of total spend, making advertising one of the fastest-growing sectors of the global economy.

North America, which currently commands almost half of worldwide advertising spend, is expected to maintain steady growth of 9–11% annually through 2029. The Asia-Pacific region, however, is forecast to grow more quickly, led by high-growth markets such as India.

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India’s Digital-Led Growth

India’s advertising market, valued at $16–18 billion in 2024, is projected to grow at a compound annual rate of 10–15%, outpacing global averages. Digital advertising already accounts for 50–60% of India’s total spend and is expected to nearly double by 2029, reaching $17–19 billion.Small and medium-sized enterprises (SMEs) and direct-to-consumer (D2C) brands are becoming pivotal players. Their share of digital ad spend is set to rise from 37% in 2024 to 40–42% by 2029, driven by mobile-first marketing, deeper integration with e-commerce, and performance-focused strategies.“India’s digital advertising market is at an inflection point,” said Prabhav Kashyap, Partner at Bain & Company. “The convergence of mobile-led consumption, the rapid rise of video formats, and the integration of AI into every stage of the advertising process is reshaping how brands connect with consumers.””As audiences spread their attention across more devices and platforms, the leaders will be those who diversify beyond mega platforms, design content for each channel from the ground up, and harness AI and first-party data to deliver personalized, high-impact campaigns. Over the next five years, the ability to combine creativity, data, and technology will be the defining factor in who captures the most value,” he added.

Mobile and CTV Dominate

Mobile devices remain the leading platform for advertisers, accounting for nearly 70% of digital ad spend globally, with India’s share exceeding this by 5–10 percentage points. New channels such as connected TV (CTV), which represents around 10% of global digital advertising but less than 5% in India, are gaining importance.

The number of CTV households in India more than doubled over the past two years, rising from about 20 million in 2022 to nearly 45 million in 2024. Brands are increasingly deploying contextual CTV ads to target premium consumers, with OTT platforms enabling more performance-driven campaigns.

Shifting Consumer Behaviour

Indian consumers are spending more time online, averaging 4.8 hours per day on mobile devices in 2023 compared with 3.7 hours in 2019. OTT adoption is accelerating, with JioHotstar expected to cross 100 million paid subscribers by 2025 and attract over 500 million monthly active users during peak events such as the IPL.

To engage audiences across fragmented devices and platforms, brands are diversifying their media budgets. Advertisers in India are shifting 20–30% of their spend towards e-commerce, CTV, and high-engagement channels like IPL digital inventory. Rather than recycling television assets, they are adopting platform-first creative strategies such as influencer reels, long-form YouTube videos, and microsites tailored to individual channels.

AI at the Core of Strategy

Artificial intelligence is becoming central to advertising, extending well beyond creative production into predictive targeting, automated testing, real-time campaign optimisation, and ROI tracking.

Adtech firms such as InMobi, AppLovin, The Trade Desk, and Moloco are embedding AI-driven tools into their platforms, offering advanced audience clustering, cross-channel attribution, and contextual targeting.

Devika Mittal, Associate Partner at Bain & Company said “To unlock stronger ROI, brands and publishers need to work in closer sync. Compared to just a few years ago, we’re seeing the emergence of scaled adtech players (like InMobi and The Trade Desk) who are playing a pivotal role in driving more precise targeting and performance, maturing the ecosystem significantly and enabling brands to continuously sharpen their digital advertising strategies.”

Ecosystem Evolution

Publishers are enhancing their platforms with minimally disruptive advertising formats, loyalty-led engagement models, and more sophisticated data capabilities. Adtech players, meanwhile, are consolidating and vertically integrating to offer full-stack solutions combining demand-side platforms, supply-side platforms, and exchanges.

Bain’s report concludes that the winners in the digital-first advertising era will be those who combine creativity, data, and technology to deliver personalised, high-impact campaigns. With advertising projected to touch 1% of global GDP by 2029, India’s rapid digital adoption positions it as one of the most dynamic markets worldwide.

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