MUMBAI: Clickonomics at work. Advertising is no longer just a sideshow to the economy; it is fast becoming one of its main acts. Global ad spend, worth about one trillion dollars in 2024, is set to swell to nearly one per cent of global GDP by 2029, says Bain & Company. The digital slice of the pie, already dominant, will account for 80-85 per cent of all spend within five years.
India is emerging as one of the liveliest markets in this story. Valued at 16-18 billion dollars in 2024, its ad market is growing at 10-15 per cent annually and is expected to hit 17-19 billion dollars by 2029. That will lift advertising’s share of GDP from 0.4-0.5 per cent. More than half of the country’s ad rupees already go online, a share that will only rise as smartphones, OTT platforms and fast data spread deeper into towns and villages.
Small firms and direct-to-consumer brands are doing much of the heavy lifting. Their share of India’s digital ad wallet has crept up to 37 per cent in 2024 and could hit 42 per cent by 2029. They are pouring money into mobile-first campaigns, e-commerce tie-ins and performance marketing, all with a sharp eye on returns.
Globally, mobile screens are soaking up around 70 per cent of digital budgets, with India leaning even harder on handsets. Newer channels like connected TV are gaining ground, too. India already has 45 million CTV households, up from 20 million in 2022, and brands are chasing their premium eyeballs with contextual ads and cricket-season splurges.
“India’s digital advertising market is at an inflection point,” said Prabhav Kashyap, partner at Bain & Company. “The convergence of mobile-led consumption, the rapid rise of video formats, and the integration of AI into every stage of the advertising process is reshaping how brands connect with consumers. As audiences spread their attention across more devices and platforms, the leaders will be those who diversify beyond mega platforms, design content for each channel from the ground up, and harness AI and first-party data to deliver personalised, high-impact campaigns. Over the next five years, the ability to combine creativity, data, and technology will be the defining factor in who captures the most value.”
AI is changing the business from top to bottom. No longer just a tool for faster ad copy, it is now steering media plans, testing creative variations, allocating spend and measuring incremental returns. Global players such as InMobi, The Trade Desk and AppLovin are racing to embed machine learning into every step of the process.
Publishers are also sprucing up their platforms with less intrusive formats, smarter data and loyalty-driven engagement. Adtech firms, meanwhile, are bulking up into full-stack operations, stitching together demand- and supply-side platforms with exchanges. The industry is consolidating around those who can offer sharper targeting and better ROI.
Bain & Company, associate partner, Devika Mittal said, “To unlock stronger ROI, brands and publishers need to work in closer sync. Compared to just a few years ago, we are seeing the emergence of scaled adtech players (like InMobi and The Trade Desk) who are playing a pivotal role in driving more precise targeting and performance, maturing the ecosystem significantly and enabling brands to continuously sharpen their digital advertising strategies.”
Advertising has always followed the eyeballs. Now, with eyeballs glued to mobile screens, streaming apps and AI-powered feeds, the money is moving faster than ever. By 2029, ads will not just be selling soap, they will be helping steer the world’s economy.