Industry Odisha Bureau, Oct 14: India’s ad market is set for high-single-digit growth in 2026, says Publicis Media. Festive budgets remain cautious. Money is shifting towards creators, quick commerce and connected TV, while clients demand results.
India’s advertising spends are expected to keep rising at a high-single-digit pace in 2026. Yet advertisers are approaching the festive season with visible caution. Lalatendu Das, Publicis Media’s chief executive for South Asia, described the mood as cautious optimism.
Early enthusiasm for bigger budgets has faded as plans took shape, Das said. He has seen more caution and slower approvals from advertisers. Businesses are still recovering from the after-effects of the Gulf war.
Das expects festive spending to match, or possibly exceed, last year’s levels. That earlier season was helped by goods and services tax cuts on many products. However, he warned that external uncertainty could still affect actual spending.
The festive period matters heavily for automobiles, electronics, gadgets, beauty and home decor. Their marketing plans therefore shape the wider advertising market’s performance.
India’s annual advertising expenditure is estimated at ₹1.5 lakh crore to ₹2 lakh crore. That equals about 0.5% of gross domestic product.
The bigger change lies in where money is going. Spending is moving away from costly celebrity-led productions towards creators, Das said. Creators often offer closer audience connection and more targeted reach. Celebrity campaigns have not disappeared, but budgets are being spread more widely.
Quick-commerce platforms are drawing advertisers from food, beauty and clothing. These apps let brands reach shoppers close to the moment of purchase. That makes advertising easier to link directly with sales.
Connected television, or CTV, is another growth area. It pairs television’s shared, family viewing with quick action on a phone. Das said combining content and commerce is now important for advertisers. Frequency capping, which limits how often viewers see an ad, remains difficult on some platforms.
Agency competition is also shifting. Publicis Media led India’s new-business rankings in the first half, according to COMvergence. It secured $218 million in total new business, including retained accounts. Net new business, excluding retentions, stood at $157 million.
These figures track account wins, not company revenue or profit. Clients now expect agencies to solve business problems, not just buy media cheaply. A lower CPM, or cost per thousand impressions, is no longer enough, Das said. Clients also want guidance on staying relevant three years ahead.
Das also challenged how India’s advertising potential is usually measured. The country’s ad-to-GDP ratio trails the US and Europe. He argued that spending relative to GDP per capita is a better gauge.
By his estimate, 50–60 million Indians have developed-market purchasing power. Another 100–140 million resemble consumers in middle-income countries. A much larger population sits in lower-income groups. Advertising may therefore reach many people unable to afford the products shown.
Lower-income consumers still buy, but in smaller packs and at lower prices. Das cited ₹2 shampoo sachets and ₹5 chocolates as examples. Such segments demand different products, messages and media choices.
Advertising spends are still growing, but budgets face sharper scrutiny. Brands want measurable results, precise targeting and audiences who can actually buy.
