Team siliconindia

• India’s digital ad market is set to grow by 15% annually until 2029.
• AI, mobile first content, and video led in app ads are driving the shift.
• SMEs and D2C brands will contribute up to 42% of ad spend by 2029.

India's digital advertising industry is on track to become one of the fastest growing markets in the world, with an expected 15% annual growth rate through 2029, according to a new report by Bain & Company. The market, currently valued between $16-18 billion, is projected to reach $17-19 billion by the end of the decade, fuelled by rising digital usage and AI adoption.

The surge in mobile device usage is a key driver. On average, Indian consumers now spend 4.8 hours per day on mobile, making mobile in-app advertising the largest contributor to digital ad spending accounting for nearly 70% of the total. Video based ads and AI powered formats like smart search and summaries are becoming the norm.

As digital platforms continue to evolve, artificial intelligence is transforming the entire ad ecosystem. From advanced audience targeting and testing to personalised content creation and real time performance tracking, AI is helping brands optimise their campaigns for better reach and ROI. Adtech companies like InMobi and The Trade Desk are leading this evolution by enabling smarter ad delivery and improved monetisation for publishers and brands.

Also Read: Digital Marketing Trends That Will Shape the Next Decade

At the same time, SMEs and direct to consumer (D2C) brands are gaining ground. Their share in digital ad spending is expected to grow to 42% by 2029, reflecting the rising dominance of digital first and challenger brands in the Indian market.

With expanding mobile use, AI tools, and increasing digital budgets, India’s advertising industry is entering a new era of precision marketing and personalised content, set to reshape the way brands connect with consumers.