India’s Digital Ad Market Set for 15% Annual Growth as AI, Mobile, and Video Ads Drive New Opportunities

India’s Digital Ad Market Set to Grow 15% Annually Through 2029

India’s digital advertising market is on track to expand at an annual rate of 15%, reaching an estimated $17–$19 billion by 2029. This growth is fueled by several factors, including increased digital consumption, widespread mobile device use, and the booming popularity of over-the-top (OTT) platforms.

Mobile devices dominate the digital ad spend, accounting for nearly 70% of the total, with India’s share even higher. Small and medium enterprises (SMEs) and direct-to-consumer (D2C) brands are becoming major contributors, expected to account for up to 42% of digital ad spending by 2029.

Key Drivers Behind India’s Digital Ad Growth

Consumers in India spend roughly 4.8 hours daily on mobile devices, which is accelerating mobile-first ad formats. Video-led in-app ads are gaining popularity, while AI-powered search and summary ads are emerging trends that marketers should watch.

Brands are shifting budgets to diversify media channels, focusing on mobile-first content and leveraging AI alongside first-party data for highly personalized campaigns. AI plays a central role in targeting, media planning, testing, and tracking return on investment (ROI).

Leading adtech companies like InMobi and The Trade Desk are advancing the ecosystem, while publishers are enhancing platforms with AI-driven targeting and engagement tools. Integrated adtech partnerships are improving precision in targeting and strengthening ROI delivery.

What Marketers Need to Know

• Mobile-led consumption will continue to shape advertising strategies.
• Video formats, especially in-app ads, are becoming essential for engagement.
• AI integration at every stage—from creative development to analytics—will define successful campaigns.
• Diversifying beyond major platforms and customizing content for each channel will be crucial.
• Using first-party data effectively enables hyper-personalized messaging that resonates with audiences.

Marketers who combine creativity, data insights, and technology will capture the most value over the next five years. Staying ahead means adapting to evolving consumer habits and adopting AI tools that improve targeting accuracy and campaign efficiency.

Learn More About AI’s Role in Marketing

For marketing professionals looking to deepen their knowledge of AI-powered advertising and campaign personalization, Complete AI Training offers courses designed to sharpen skills in AI marketing strategies and tools.