New Delhi [India], September 7 : Digital advertising is expected to account for around 80 per cent of overall ad revenue globally by 2029, highlighting the growing shift towards digital formats, while digital media has already overtaken television to become the single-largest segment of India's media and entertainment industry, according to a report by ICICI Securities.
The report said the rise of digital media is not a temporary shift but reflects deeper changes in consumer behaviour, advertiser preference and the way platforms generate revenue.
It stated, “Digital formats accounted for ~72 per cent of overall ad revenue globally in CY24 and are forecast to reach ~80 per cent by CY29P”.
In India, digital media grew by more than 30 per cent year-on-year in CY25, making it the fastest-growing segment among the major segments of the media and entertainment industry.
Digital advertising has been a major driver of this growth. Its share of India's total advertising market increased to around 63 per cent in CY25 from around 56 per cent in CY24.
Digital advertising revenues crossed Rs 947 billion in CY25 and moved closer to the Rs 1 trillion mark, the report said.
The shift towards digital is also visible in the broader advertising market. Indian advertising grew 13.5 per cent in CY25 to reach Rs 1.5 trillion.
As per the report, the growth was higher than the media and entertainment sector's overall growth rate of around 9 per cent and exceeded nominal GDP per-capita growth of 7.7 per cent for the first time in three years.
The report also highlighted performance marketing as an important factor behind the rise of digital advertising. Unlike traditional advertising, digital formats allow advertisers to track consumer response and target specific audiences, making them increasingly important for businesses looking for measurable outcomes.
Two areas of digital advertising are expected to see particularly strong growth globally. Retail search advertising in e-shopping is projected to increase its share from around 33 per cent in CY24 to around 46 per cent in CY29P. In-game advertising is expected to rise from around 33 per cent to around 39 per cent over the same period.
India is also seeing strong growth in commerce-linked advertising. E-commerce and point-of-sale advertising surged 50 per cent in CY25 to reach Rs 220 billion, equivalent to 85 per cent of total television advertising revenues.
The report said the developments point to a broader structural shift in the advertising industry, with digital formats gaining a larger share of spending as advertisers and consumers increasingly move towards online platforms.