With the Indian advertising landscape undergoing a seismic shift, this is just about the best time ever to invest or be a startup owner. According to updated estimates, the Indian advertising market is forecast to increase by 7% in 2025 and reach a staggering Rs 1,64,137 crore. The digital advertisements, which appear to be absolute kings, would probably corner about 60% of all the ad spends driving this growth. Digital engagement would thus continue its spree, making shrewd investors and entrepreneurs in startups keenly realize that such a vast sector is indeed at their doors.
Why the Digital Boom?
In 2025, India’s internet user base is expected to surpass 900 million, a staggering figure that provides a vast pool of potential customers. With digital advertising revenue expected to increase by 11.5% to Rs 99,137 crore, platforms that can tap into this growing base of consumers will benefit from unprecedented market demand. Digital is not an option; it is a future.
Several factors are fuelling the surge, from AI-powered advertising and programmatic ads to immersive technologies such as mixed reality. These innovations are allowing brands to connect with audiences in ever more personalized ways, making customer interactions more meaningful and impactful. Thus, advertisers are shifting their budgets toward platforms that offer smarter, more targeted approaches, and that is a fertile ground for new startups offering solutions in AI, data analytics, and digital marketing technologies.
The Expanding Role of Retail Media
Retail media is interesting for investors in general. In just two years, since 2019, retail media has seen a whopping 40% CAGR and has been an absolute game-changer for not only e-commerce platforms but traditional retailers as well. More momentum to this change is being given by the increasing footprints of SMEs, BFSI, and tech sectors who are expected to account for close to 60% of the ad spend in 2025. Ad-tech innovation or through e-commerce-driven content, start-ups focusing on this niche area would be highly rewarding.
The Traditional vs. Digital Divide
Even traditional media like TV, print, and radio are not left out in this revolution. While ad revenue in television is going to decline by a small margin, print will still grow at a moderate pace. This makes room for the start-ups and investors to enter conventional formats, creating better digital experiences or connecting traditional and digital channels.
Key Takeaway?
For investors and entrepreneurs, it is clear: India's digital advertising sector is an opportunity waiting to be seized. By being in line with trends such as AI-driven marketing, immersive content, and retail media, you can position your startup to take full advantage of this transformative moment. The future of advertising is digital, and India is at the centre of it.
If a dazzling portfolio of success is your mantra for year 2025, then you are at the right place. Be it investing in highly profitable startup or securing funds for your next big break in the entrepreneurial world, BestVantage Investments is here for you. Get in touch today and let’s get started.
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