Digital Media Captures 46% of India’s ₹1 Lakh Crore Ad Market in FY25: Crisil

India's advertising industry has been growing by 6 to 7 per cent every year for the last five years and reached over Rs 1 lakh crore in total spending in the year 2024–25, as per a report by Crisil Ratings.

Digital advertising saw the fastest rise during this period, making up 45–46 per cent of total ad spending last fiscal year. This is a big jump from 24 per cent in FY20, showing how quickly digital has taken over.

Traditional Media Sees Decline

The report also pointed out that in the current financial year, the gap between digital and traditional advertising will likely increase. Spending on traditional media is predicted to either stay the same or decrease, while digital is predicted to expand by 9–11 percent.

Back in FY20, traditional platforms like TV and print made up about 65 percent of the advertising market. That share has now fallen to 46–47 percent. TV is facing pressure as more viewers move to OTT platforms, leading to a drop in ad revenue. At the same time, cable and satellite TV providers are losing subscribers to fibre-based internet services.

Crisil mentioned that direct-to-home (DTH) television lost more than 10 million subscribers between December 2020 and 2024, highlighting the shift in consumer habits.

Print Struggles to Stay Relevant

Print media is also facing its own challenges. Circulation hasn't grown, and people now prefer to get their news on digital platforms. As a result, advertisers are shifting their spending away from print. Total readership dropped by 500 basis points between FY20 and FY25, as per the report.

Pushan Sharma, Director at Crisil Intelligence, explained that industries focused on consumers, like FMCG, cars, and online shopping, are now spending more on digital ads. FMCG brands, in particular, are putting 55–60% of their advertising money into digital now, compared to just 30% in FY20.

Digital’s Growth Looks Set to Continue

This shift to digital appears to be long-term. Even companies that once focused only on traditional methods are now working on digital strategies. Online platforms allow for more focused targeting, better reach in small markets, and lower costs. Content made by individual creators also brings higher viewer involvement, making digital ads more effective and easier to measure.

As more brands move to digital-first strategies, India's ad industry is clearly changing. This shift is shaping a new future where online media plays a central role in advertising.