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India’s Ad Market Set to Cross ₹2.02 Lakh Crore in 2026, Led by Commerce and AI

India’s Ad Market Set to Cross ₹2.02 Lakh Crore in 2026, Led by Commerce and AI

India’s advertising industry is poised to cross ₹2.02 lakh crore in 2026, reinforcing its position as one of the world’s fastest-growing ad markets. According to WPP Media’s This Year Next Year (TYNY) 2026 report, total ad revenue is projected at ₹2,01,891 crore, marking an incremental rise of ₹17,844 crore over 2025 and a healthy growth rate of 9.7%.

The report highlights India’s emergence as a top 10 global advertising market, with advertising now contributing 0.5% to the nation’s GDP. This growth is being fuelled by rising per capita income and the continued formalization of digital advertising. Digital channels-including their extensions across media-now account for 68.1% of total ad spends, underscoring the country’s rapid shift towards outcome-driven, technology-led marketing.

Commerce-led advertising stands out as the fastest-growing segment, expanding at 24.2%, driven by the convergence of retail media, quick commerce and social commerce. Other digital formats are also gaining momentum, while traditional channels such as television, print and out-of-home continue to grow at a steadier pace, supported by connected TV, addressable advertising and sector-specific relevance.

Prasanth Kumar noted that the convergence of AI, commerce and privacy is redefining consumer connections, pushing brands to focus on omnichannel journeys rather than isolated transactions. Echoing this, Ashwin Padmanabhan emphasised that AI-powered formats and quick commerce are becoming central media choices.

Parveen Sheik added that brands embracing AI, data intelligence and privacy-first strategies will capture a disproportionate share of this growth, especially as Gen Z and Gen Alpha reshape consumption with their demand for speed, personalisation and purpose-led engagement.

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