India’s ad market set to near Rs 2 lakh crore in 2026: WPP Media

MUMBAI: Even as storm clouds gather over the global economy, India’s advertising engine appears determined to keep its foot on the accelerator. India’s advertising market is projected to grow 8.8 per cent in 2026, reaching nearly Rs 2 lakh crore (around $22.5 billion), according to WPP Media’s latest mid-year This Year, Next Year forecast. The upbeat outlook comes despite rising geopolitical tensions, elevated energy prices and concerns over global economic uncertainty.

The forecast paints a picture of two contrasting forces at work. On one side are growing pressures from a volatile global economy. On the other is an advertising ecosystem increasingly powered by digital platforms, e-commerce and artificial intelligence.

The report warns that India remains particularly exposed to energy shocks, importing about 85 per cent of its crude oil and roughly half of its natural gas requirements. Any sustained rise in oil prices could fuel inflation, squeeze household spending and raise costs for businesses across sectors.

Industries such as FMCG, automobiles and consumer durables could face mounting input costs, potentially affecting marketing budgets. Additional risks stem from imported inflation, currency volatility and climate-related disruptions, including the possibility of El Niño impacting consumption patterns.

Yet India’s advertising story continues to find fresh fuel.

Digital advertising remains the market’s growth engine, with social and other digital formats expected to rise 13.2 per cent to $8.3 billion in 2026. Short-form video, creator-led content and emerging formats such as microdramas are increasingly capturing consumer attention across screens.

Perhaps the biggest winner is commerce media. Advertising linked to e-commerce and quick-commerce platforms is forecast to surge 29 per cent to $3.9 billion, making it the fastest-growing segment in the market. As platforms such as Amazon, Flipkart, Blinkit, Zepto and Instamart become digital storefronts and media channels rolled into one, brands are shifting budgets closer to the point of purchase.

Traditional media, meanwhile, continues to lose ground. Television advertising revenue is expected to decline 6.8 per cent as viewers increasingly migrate to streaming and digital platforms.

Globally, WPP Media notes that marketers are navigating a challenging environment marked by geopolitical fragmentation, cautious consumer sentiment and higher energy costs. Yet artificial intelligence is emerging as a powerful growth catalyst, helping brands improve efficiency, personalise campaigns and uncover new ways to engage consumers.

For India, the long-term picture remains encouraging. Strong digital adoption, festive-season spending, expanding online commerce and a growing base of small and medium-sized advertisers continue to underpin market momentum.

While external shocks may keep growth below double digits in 2026, WPP Media expects India to return to double-digit expansion from 2027 onwards further cementing its status as one of the world’s fastest-growing advertising markets.