Mint Explainer | India’s advertising pivot: What changed in the past year

Latest data from TAM AdEx shows a 149% surge in digital ad impressions from January to September 2025 compared to the same period last year. This marks a sharp turnaround from the relatively stagnant growth of just 7% seen throughout 2024.

In contrast, television advertising is experiencing a decline, with ad volumes dropping by 10% in the first half of 2025. This indicates a shift in how brands allocate their marketing budgets, moving away from traditional channels toward digital platforms.

So, what’s driving this change, and what does it mean for brands, media platforms, and advertising agencies? Mint explains.

Why is digital advertising growing so sharply?

The latest surge reflects digital’s evolution from a supplementary medium to the primary growth engine for advertisers, particularly in e-commerce and services-led categories.

“A lot of these new age startups that are coming, they almost 100% live on social media," said Naresh Gupta, managing partner at The Bang in The Middle, an advertising agency. He also said that many have already decided that their business and our growth will come from being on these platforms.

According to TAM AdEx, e-commerce–online shopping emerged as the single largest digital advertising category in 2025, recording 96% growth over the year-ago period. Services, education, software and fashion-linked ecommerce categories also climbed the rankings, underscoring how brands chasing performance, scale, and faster conversions are leaning heavily on digital platforms.

“They end up spending a lot of money on these platforms just seeing the growth happen," Gupta said.

This marks a clear shift from 2024, when digital growth was steady but incremental, suggesting advertisers have turned more aggressive as competition for online consumers intensifies.

What’s happening on television then?

TV ad volumes fell 10% in January–June 2025 compared with the same period last year, with spending remaining heavily concentrated among FMCG categories such as food and beverages, personal care and household products. Categories like toilet soaps, floor cleaners and washing powders continued to dominate, highlighting TV’s enduring role as a mass-reach medium for everyday consumption brands.

“If you are wanting to be on television or wanting to be on connected television, your entry cost is much higher," Gupta said, adding that compared to platforms like Instagram or Google, “your entry cost is much lower."

How are platforms and buying strategies changing?

The way digital ads are bought and delivered has changed just as dramatically as volumes.

Programmatic buying now accounts for 96% of all digital ad impressions, up from 88% in 2024, reflecting advertisers’ growing preference for automated, data-led targeting. Social platforms have emerged as the biggest beneficiaries of this shift, with Instagram alone commanding 64% of digital ad impressions in 2025. This reflects advertisers’ preference for platforms where audiences are easier to reach and measure, Gupta said.

Television, by contrast, remains concentrated around general entertainment and news channels, which together account for nearly 60% of ad volumes, signalling relative stability in viewing behaviour even as ad volumes soften.

“There is audience at that programme," Gupta said, pointing out that shows such as Bigg Boss and Indian Idol continue to deliver scale. “Television has delivered tremendous audience on cricket," he added.

Who is driving this divergence in ad spending?

A growing share of digital growth is coming from digital-only advertisers—brands that are bypassing television altogether.

The number of advertisers exclusive to digital platforms rose to over 149,000 in January–September 2025, up sharply from about 100,000 in 2024. These include e-commerce firms, startups, fintech players, and software brands that prioritise speed, attribution, and measurable returns. These advertisers often prefer digital channels because of lower entry costs and clearer measurement, Gupta said.

Television advertising, meanwhile, remains dominated by large FMCG companies such as Hindustan Unilever, Reckitt Benckiser and Nestlé, which continue to rely on TV for nationwide visibility and brand reinforcement.

“The impact will come from going on a mass audience platform," Gupta said, especially when the objective is long-term awareness and discovery.

What does this mean for the future of advertising?

The past year suggests India is settling into a two-speed advertising market.

Digital is increasingly the medium for growth, experimentation and performance-driven spending, particularly for e-commerce and services brands. Television, while still powerful, is becoming a more selective choice—used primarily for mass-market FMCG categories that depend on habit, trust and repetition.

“The audience has not walked away from either of the platforms," Gupta said, even as he expects influencer fatigue and big-event-led advertising to shape the market through 2026.