MAM
China’s Madhouse comes to India
MUMBAI: China’s mobile marketing company, Madhouse, announced the launch of its India operations on 14 February to capitalise on the demand for customised mobile marketing solutions.
Madhouse currently works closely with over 120 clients like HP, Intel, Coke, KFC, Unilever, VW and agency groups such as GroupM, Aegis, OMG, Vivaki and their associated agencies in China.
Madhouse India aims to leverage the opportunity of using mobile as a mass media device given that there are more than 850 million mobile connections in the country. Current barriers to mobile marketing are dearth of scaled solutions in data, voice and text, harmonizing the different operating systems with multiple stakeholders across mobile inventory and lack of established tools and systems which makes it difficult to answer the question of how this medium can be leveraged by advertisers to reach out to their consumers.
Madhouse India hopes to address this through unique and innovative services. Clients can look forward to mobile solutions across the spectrum of paid, owned and earned media on feature phones, smart phones and tablets.
Madhouse provides service across all operating systems with precise targeting by geography, user demographics and psychographics to ensure minimal media wastage.
Madhouse India chief operating officer Vinod Thadani said at the launch, “Mobile advertising is beginning to transform the way brands communicate with their consumers. Madhouse will offer mobile marketing solutions created and carried out for advertisers by a team of experienced media professionals that understand this medium. On a technical level, mobile advertising can now achieve accurate intelligent targeting and can provide real-time reporting – a very convincing proposition for advertisers. The need of the hour is to unlock the potential and we are determined to change the face of the Indian Digital Media Landscape and grow the mobile media market from 125 to 1000 crores within the next three years.”
Madhouse sees tremendous growth potential in India. Said Madhouse founder and CEO Joshua Maa, “We are fully committed to investing in this market. With the right local partners, we believe that our technology and operational expertise can be leveraged to serve the unique mobile marketing needs of clients. In China, we have been working with partners such as Rovio, EA, China Unicom’s app store, and ad agencies to grow our leadership position. Similarly in India we value our association with WPP to help develop and take leadership in this market as well.”
WPP country manager Ranjan Kapur explained, “Digital Media is evolving and innovating at a very fast pace in India where especially Mobile and handheld devices are poised to play a larger role in marketing communications. Madhouse India will help us build a unique value for our clients where in-depth domain and brand understanding is coupled with the strength of Madhouse technologies. A synergy is also established as our local market expertise and talent pool is well equipped in the Indian marketplace which is similar in complexity to China.”
One of the companies in business with Madhouse is Rovio Entertainment, the makers of the game Angry Birds.
AD Agencies
This year next year ’26: Content-driven advertising is in steady decline, says WPP Media COO
One of several market trends outlined in WPP Media’s 2026 advertising outlook
MUMBAI: India’s advertising market is set to cross Rs 2 trillion in 2026, expanding 9.7 per cent year-on-year, as commerce-led and AI-powered formats accelerate a structural shift away from traditional content-driven advertising, according to WPP Media South Asia chief operating officer Ashwin Padmanabhan.
Speaking on the industry outlook, Padmanabhan opined India exited 2025 with advertising spends of around Rs 1.84 trillion, reflecting 9.2 per cent growth over the previous year. The market is forecast to expand a further 9.7 per cent in 2026, adding nearly Rs 17,800 crore in incremental advertising expenditure and taking total spends beyond Rs 2 trillion for the first time.
Advertising in India currently accounts for roughly 0.5 per cent of GDP, a level materially below mature markets such as the UK (about 1.5 per cent), the US (around 1.4 per cent) and China (approximately 1.1 per cent).
Padmanabhan argued this gap highlights the long runway for growth, particularly as India’s per capita GDP, now estimated at roughly $2,800, moves closer to the $4,000 threshold, historically associated with a sharp rise in advertising intensity.
Traditional media sees slower growth
By contrast, growth in traditional content-driven formats is expected to moderate. Television advertising, including linear TV and digital extensions such as connected TV, is forecast to grow 3.1 per cent in 2026. Print advertising, defined to include newspapers, magazines and their digital platforms, is expected to expand 4.4 per cent, reflecting relative stability after several years of decline. Audio advertising is projected to grow a modest 1.5 per cent.
As a result, content-driven advertising, which accounted for more than 90 per cent of total ad spends in 2010, is forecast to decline to about 70 per cent of the total market by 2026, down from roughly 72 per cent in 2025. This shift underscores the growing preference for formats tied more directly to commerce and data-driven outcomes.
Digitalisation reshapes ADex mix
Digital formats are expected to account for 68.1 per cent of total advertising spends in India in 2026, up steadily but still below the global average of nearly 83 per cent. This figure includes not only pure-play digital advertising but also the digital extensions of television, print, audio and out-of-home media.
Within digital, the fastest growth is expected in commerce-led advertising, forecast to rise nearly 24 per cent year-on-year. These formats, closely linked to transactions and conversions, are increasingly favoured by advertisers seeking higher accountability and measurable returns.
Closely following is intelligence-led advertising, encompassing traditional search as well as emerging AI-enabled search and discovery, projected to grow 8.8 per cent. Padmanabhan likened the intensifying competition among AI platforms to the early days of telecom, noting how consumer attention is now being contested by players such as Google, OpenAI, Anthropic and Perplexity.
Location-based advertising, including out-of-home, cinema, ambient media and their digital extensions, is forecast to grow 8.9 per cent, aided by improved measurement and increasing integration with mobile and commerce platforms.
Category drivers and sectoral trends
From a category perspective, Padmanabhan identified SMEs, technology, real estate, education and automotive as the primary growth engines. Together, these segments accounted for about 51 per cent of advertising volumes in 2025 and are forecast to grow at a robust 14 per cent in 2026.
Foundational sectors, including CPG, e-commerce, BFSI and retail, represented around 46 per cent of total ad spend in 2025 but are expected to grow at a slower 6 per cent pace next year. Durable services, which made up only 3 per cent of advertising volumes, are forecast to grow around 2 per cent.
Padmanabhan noted continued premiumisation within FMCG, aided by the rapid expansion of quick commerce, which has enabled faster go-to-market for higher-value products. Rural consumption trends remain closely tied to monsoon outcomes, while inflation in raw materials could influence pricing decisions across categories.
Auto, EVs and BFSI in focus
The automotive sector recorded a strong year, with vehicle registrations rising about 8 per cent, spanning personal vehicles, commercial vehicles and tractors, signalling resilience in both rural demand and overall economic activity. Electric vehicle (EV) adoption continues to rise, led by commercial vehicles and two-wheelers, which together account for the bulk of volumes. EVs represented about 4 per cent of personal vehicle sales and nearly 6 per cent of two-wheeler sales in 2025.
However, Padmanabhan cautioned that constraints related to rare-earth magnets, heavy earth materials and shortages of high-end semiconductors could affect the pace of EV and AI-enabled device adoption, potentially pushing up costs.
In BFSI, strong growth in personal loan portfolios, driven by spending on travel, consumer goods and mobile devices, has supported advertising demand. At the same time, declining savings and deposits could place pressure on banks’ lending capacity, posing a potential risk to medium-term growth.
Tier 2, Tier 3 markets and retail revival
E-commerce platforms saw their highest volumes during the 2025 festive season from Tier 2 and Tier 3 cities, signalling a shift beyond metro-centric growth. This trend is expected to persist, with deeper market penetration becoming critical for both e-commerce and quick commerce platforms.
Retail also staged a sharp revival in 2025 after more than three years of stagnation, supported by festive demand and new store launches. Padmanabhan said this momentum is likely to continue into 2026.
Overall, the Indian advertising market stands at an inflection point. Technology, commerce, and AI are reshaping how brands reach consumers, while ample headroom remains for growth as economic fundamentals strengthen.
