Mumbai: India’s advertising industry is projected to grow by 9.7% by 2026, reaching ₹2,01,891 crore, according to the latest forecast from WPP Media’s This Year Next Year (TYNY) report. This growth represents an increase of ₹17,844 crore over the previous year, with digital advertising expected to account for a substantial 68.1% of total ad revenue. Among various segments, commerce-led advertising is anticipated to emerge as the fastest-growing category, soaring by 24.2%.
The TYNY report highlights a significant structural transformation within the industry, indicating a shift from traditional channel-based spending towards AI-driven, commerce-integrated ecosystems where brand discovery, transaction, and consumer engagement converge. This transformation underscores India’s position as one of the world’s top ten advertising markets, with ad spend representing about 0.5% of GDP, and is poised to expand at nearly 10% per annum, outpacing many global counterparts.
Parveen Sheik, Head of Business Intelligence India at WPP Media, emphasized that the outlook for 2026 reflects both the scale and maturity of the market. “India’s advertising market demonstrates dynamism and maturity. At 9.7% growth, we are one of the fastest growing among top markets. The story of 2026 is one of convergence – where media, technology, and commerce become homogenous to deliver for brands,” she stated. She added that brands leveraging AI, data intelligence, and privacy-first strategies will likely capture disproportionate growth.
Digital advertising’s dominance is set to deepen, with forecasts indicating it will constitute 68.1% of total revenue in 2026. Within digital, commerce-led formats—including retail media, quick commerce, and social commerce—are expected to grow by 24.2%, outpacing other digital segments. Other digital channels are projected to expand by 11.1%, with intelligence-driven formats like AI search and voice engagement growing by 8%. Traditional media channels are also seeing growth, with print expected to rise by 4.4% and television seeing an increase of 3.1% due to connected-TV and addressable formats.
Prasanth Kumar, CEO South Asia at WPP Media, spoke on the factors driving this transformation, stating, “India today stands at a pivotal crossroads where artificial intelligence, commerce, and privacy converge to redefine the very nature of consumer connection. With digital commanding nearly 68% of advertising expenditure, it has become an epicentre of connections, fuelling an ecosystem that is driven by outcomes rather than mere impressions.” Kumar emphasized that future growth will hinge on brands orchestrating value across the entire consumer journey rather than focusing solely on isolated transactions.
Ashwin Padmanabhan, COO South Asia at WPP Media, reinforced the importance of AI-enabled engagement and commerce platforms, remarking that the advertising landscape in 2026 will be defined by outcome-driven strategies. “AI-powered consumer engagement is accelerating outcome-driven formats. Quick commerce is at a point of inflection, moving from a sales channel to an important media choice,” he said. The TYNY report identifies the convergence of quick commerce with retail media as a crucial shift shaping India’s advertising ecosystem.
The report outlines ten structural transformations affecting advertising in India, such as AI-driven marketing systems, answer-led search, and privacy-first data strategies. These changes signal a shift from campaign-led advertising to continuous, data-driven engagement loops, wherein brands are expected to deploy interconnected AI agents to manage marketing workflows while focusing on strategy and governance.
Moreover, the report highlights the evolving landscape of content creation. Human creators are seen as key to defining cultural meaning, while AI is expected to enhance production across various languages and platforms. The shift from celebrity influencer marketing to community-focused engagement is particularly notable in India’s regional markets, where a focus on trust and authenticity is becoming essential.
Sectors such as SMEs, technology, telecom, real estate, and education are anticipated to drive advertising growth in 2026, while a sustained recovery in rural consumption could further boost momentum. Demographically, generations Z and Alpha are emerging as significant digital audiences, influencing brand strategies through preferences for immediacy, personalization, and purpose-driven engagement.
Overall, the TYNY forecast positions India as an accelerated version of global advertising transformation, driven by mobile-first consumers and platform innovation. As the same trends reshaping marketing worldwide—AI automation, privacy regulation, and commerce media—are unfolding in India at a rapid pace, the country may even take a leading role in global evolution in certain areas, such as quick-commerce media and regional influencer networks.
WPP Media concludes that the future of demand generation will rely on integrated systems where AI, data, creativity, commerce, and trust operate in unison. Brands must build omnichannel journeys that unify discovery, purchase, and post-purchase engagement, while agencies and media companies must adapt toward AI orchestration and data ecosystems. As Kumar noted, the path ahead will be characterized not merely by transactions, but by a transformative approach to how businesses and consumers interact.
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