Digital Marketing in India 2025 — Data‑First, AI‑Enabled & Mobile‑Dominant

Marketing in India today is navigating tectonic change. The advertising ecosystem is no longer a broadcast‑centric exercise; it has become a data‑driven, mobile‑first, AI‑enabled battlefield. According to industry data, India’s total advertising spends for FY2025 surpassed ₹1,11,000 crore, representing ~11 % growth YoY. Ipsos Meanwhile, digital media now claims ~46 % of India’s ad‑expenditure as of 2025. The Economic Times That means nearly half of every advertising rupee is going to digital. Brands operating in India must evolve or risk being left behind. Below we dive into key trends, implications, and tactics for marketers, agencies and brands navigating this era.

Key Trends & Data Points

1. Advertising spend and digital ascendancy

• FY2025 (April 2024–March 2025) ad spends reached ~₹1,11,000 crore (~US$13.4 billion) with ~11 % growth over FY2024. Ipsos

• Projections show India’s advertising market expected to grow by ~7.8 % in 2025, reaching ~₹1,37,099 crore (~US$16 billion). India Brand Equity Foundation

• Digital media’s share reached ~46 % of the total ad‑market in 2025, signifying a structural shift from traditional media. The Economic Times

2. Mobile, social and data‑first consumption

• India has ~806 million internet users as of early‑2025 (≈55 % of population), growing ~6.5 % YoY. Meltwater

• On average, Indian internet users spend ~3 hours 57 minutes out of ~6 hours 49 minutes daily on mobile devices. Meltwater

• Among content‑types, music videos (55.4 %), memes/viral video (44.1 %) dominate. Meltwater

• Influencer marketing and social commerce are gaining traction: in a digital‑marketing statistics review, influencer ad‑budget share in India grew, and ~49.1 % of consumers used social media to discover brands in 2025. CPLuz

3. AI, data‑integration, first‑party info & new measurement models

• The report “Advertising in the Digital Age, in India and Around the World” by Bain emphasises that publishers and brands are building multi‑source data engines, clean rooms and enhanced targeting models. Bain

• In India, the MMA Global “State of AI in Marketing” data shows: ~73 % believe AI will significantly enhance marketing capabilities (not replace humans); ~69 % cite skilling as a top challenge for AI inclusion; ~65 % envision building in‑house AI capability. MMA / Marketing + Media Alliance

4. Platform shifts and new media models

• CTV (connected TV) and retail‑media are gaining traction: projections suggest that by 2027 CTV could claim ~42 % of TV ad‑spend in India. The Current

• Retail‑media platforms, built on shopper data, are becoming embedded in the digital ad‑ecosystem. The Current

Implications & Strategic Actions

For Brands & CMOs:

• Prioritise mobile‑first creative and media: With smartphones as primary usage device (~97 % of internet users) and mobile leading sessions, creatives must be mobile‑native, vertical, snackable. Meltwater

• Build first‑party data and analytics capabilities: As third‑party tracking fades (privacy regulations, platform restrictions), brands need their own data infrastructure, clean rooms and advanced analytics as emphasised by Bain. Bain

• Adopt AI‑augmented marketing stacks: While AI won’t replace human creativity, 73 % of marketers believe it will enhance outcomes. Brands must invest in skill‑building and AI workflows. MMA / Marketing + Media Alliance

• Reallocate budget mix: With digital near half of ad‑spend and rising, brands should review allocations between traditional (TV, print) and emerging (CTV, social commerce, influencer) channels.

• Focus on measurement and ROI: New metrics (attention, engagement, retail‑media ROI) are gaining emphasis. Brands must refine attribution models, shift from vanity metrics to business impact.

For Agencies & Publishers:

• Offer data‑middleware and identity solutions: Brands need partners who integrate disparate data sources, provide identity‑safe targeting, modelling.

• Expand into retail‑media, CTV and omnichannel: Agencies/publishers must build capabilities to serve brands in these emerging platforms.

• Develop AI consulting and skilling services: With skilling a challenge (~69 % citing it), agencies with training frameworks will be valued. MMA / Marketing + Media Alliance

• Embrace measurement evolution: Provide brand lift, attention metrics, media quality indicators rather than just reach/impressions.

For Tech/Platform Providers & Start‑ups:

• Build mobile‑first ad‑tech and analytics: India’s mobile dominance means solutions tailored to smartphone usage, short‑form video, local languages win.

• Innovate in retail‑media tech: Platforms that integrate e‑commerce data, ad‑serving, shopper intelligence will thrive.

• Provide AI‑marketing tools tailored to Indian market: Considering 73 % believe AI will enhance outcomes, there is demand for generative‑AI, creative‑automation, predictive modelling.

• Focus on regional language, SME market: Many brands operate in regional markets; tech that supports multi‑language, local behaviours is needed.

What to Watch in 2025‑26

• Will digital’s share of ad‑spend cross 50 % in India? Already at ~46 %. The Economic Times

• How fast will CTV & retail‑media grow as proportion of budget? The projection of CTV reaching ~42 % of TV spend by 2027 is one pointer. The Current

• Will Indian brands accelerate AI adoption meaningfully, or will skilling gaps slow it? With ~69 % citing skilling as challenge, this is a restraint. MMA / Marketing + Media Alliance

• How will regulatory/ privacy changes (data localisation, third‑party cookie deprecation) impact marketing data‑models?

• Will mobile penetration/5G adoption (65 % by 2029 projected) accelerate immersive media consumption (AR/VR, high‑quality video) in India. The Current

• How much will measurement standards evolve? Will attention metrics, quality scoring become mainstream?

The digital marketing landscape in India in 2025 is not merely evolving—it is being re‑imagined. With ad‑spend growing to over ₹1 lakh crore, digital nearly half the mix, mobile and social users numbered in the hundreds of millions, and AI/data building into marketing stacks, brands that adapt have a chance to leap ahead. But adaptation calls for more than shifting budget; it requires new capabilities: mobile‑native creatives, first‑party data engines, AI augmentation, emerging‑channel readiness (CTV/retail‑media), and measurement models fit for the future. For brands that continue treating digital as “just another channel,” the risk is behind. For brands that pivot boldly, this is a moment of advantage. The question is not if digital will dominate—it already is. The question is whether you’re equipped to lead it.