India’s Ad market to hit ₹2 lakh crore in 2026 as AI and commerce redefine media mix: WPP Media

India’s advertising industry is set to cross the ₹2 lakh crore mark in 2026, even as marketers navigate economic volatility, regulatory shifts and rapid changes in consumer behaviour.

WPP Media’s latest This Year Next Year (TYNY) forecast pegs ad revenue growth at 9.7% in 2026, taking the market to ₹2,01,891 crore—an incremental addition of ₹17,844 crore over 2025. The growth keeps India among the fastest-growing advertising markets in the global top 10.

The expansion comes even as global ad growth is expected to moderate to 7.1% in 2026, with India outpacing major markets such as the U.S., China and the U.K., according to WPP Media’s December 2025 forecast.

Digital dominance deepens

Digital—including the digital extensions of TV, print, audio and OOH—will account for 68.1% of total ad revenue in 2026. While content-driven channels still contribute 70% of adex, their share is gradually tapering as commerce and intelligence-led formats gain ground.

Channel-wise, commerce-led advertising emerges as the fastest-growing segment at 24.2%, driven by the convergence of retail media, quick commerce and social commerce. Other digital channels (non-search, non-commerce) are projected to grow 11.1%, location-based media such as OOH and cinema 8.9%, and intelligence-driven formats—spanning AI-powered search, voice and agentic discovery—8%. Print is expected to grow 4.4%, television 3.1% and audio 1.5%.

“India today stands at a pivotal crossroads where artificial intelligence, commerce, and privacy converge,” said Prasanth Kumar, CEO, South Asia, WPP Media, adding that digital’s near-68% share reflects a decisive shift from impressions to outcomes. “The brands which thrive will be those capable of generating demand across the entire ecosystem and building seamless omnichannel journeys.”

Ashwin Padmanabhan, COO, South Asia, WPP Media, said 2026 will be defined by “outcome and intelligence”, with quick commerce moving “from a sales channel to an important media choice” as brands seek to capture consumers at the intersection of discovery and transaction.

Reclassifying media growth

Praseed Prasad, President – Growth & Marketing, South Asia, WPP Media, said the agency has reclassified advertising into four broad buckets—content-led, intelligence-led (largely AI and search), commerce, and other digital—reflecting structural shifts in how media operates.

“Commerce will drive the largest share of incremental growth, followed by intelligence-led formats,” he said, noting that while content remains significant, its dominance has reduced from nearly 90% of adex a decade ago to about 60% today.

On sector drivers, Prasad pointed to SMEs, tech and telecom, auto—especially EVs—and education as key contributors. AI-native brands are already emerging as large advertisers, particularly around marquee sporting properties. He also flagged emerging areas such as women’s sports, micro-dramas and long-tail event integrations as new growth frontiers.

From funnel to flywheel

Beyond the topline, the deeper shift is strategic. The traditional linear marketing funnel is collapsing as commerce platforms compress discovery and purchase into minutes. What were once bottom-of-funnel channels now influence awareness, while top-funnel media is increasingly shoppable.

Upali Nag Kumar, President, Strategy, South Asia, WPP Media, said marketing is moving toward integrated, signal-led systems. “Marketing strategy is evolving from fragmented campaigns to intelligent orchestration,” she said. Brands are no longer rigidly allocating budgets between awareness and performance but are building measurement systems to track how each drives both sales and equity.

She added that agility is becoming central to planning. “It’s no longer about locking budgets at the start of the year. Marketers are continuously recalibrating based on signals and data,” she said, noting that national and regional strategies increasingly coexist, supported by vernacular content and micro-influencers.

AI at the core of planning and measurement

Artificial intelligence is also reshaping activation and measurement. Vishal Jacob, President, Choreograph South Asia, WPP Media, said the industry is entering “an era where AI doesn’t just assist—it orchestrates.”

He explained that the shift from identity-based segmentation to predictive, privacy-compliant models such as federated learning allows brands to identify high-intent consumers in real time without centralising sensitive data. “AI now cuts across planning, activation and measurement,” he said, adding that systems are evolving into continuous learning loops rather than one-off campaign optimisations.

However, he cautioned that conversions depend on multiple factors beyond targeting—pricing, distribution, marketplace visibility and consumer reviews all play a role. “Identifying users is one part of the equation; converting them is another,” he said.

Sector drivers and demographic shifts

On the category front, SME, tech/telco, realty, auto and education are expected to lead incremental ad growth. EV adoption is supporting auto spends, while AI-led tools are lowering entry barriers for smaller advertisers. Rural recovery, if sustained, could add further tailwinds.

Parveen Sheik, Head of Business Intelligence India, WPP Media, said India’s ad market reflects convergence across media, technology and commerce. “At 9.7% growth, we are one of the fastest-growing among top markets. Brands that embrace AI, data intelligence and privacy-first strategies will capture disproportionate share of this growth,” she said.

Meanwhile, Gen Z and Gen Alpha—digitally native and purpose-driven—are reshaping content formats and platform choices with their preference for personalisation and immediacy.

At nearly ₹2 lakh crore, India’s advertising market is not just expanding—it is being redefined. If recent years were about scale and digital penetration, 2026 appears set to be about precision, orchestration and measurable outcomes—where every rupee is expected to work harder.