Tableof Contents FOREWORD04EXECUTIVE SUMMARY10CHAPTER 1. THE INDIAN ADVERTISING INDUSTRY12CHAPTER 2. THE INDIAN DIGITAL ADVERTISING INDUSTRY32CHAPTER 3. EMBRACING THE FLUX OF TODAY AND TOMORROW54RESEARCH METHODOLOGY85 FOREWORD There’s something fascinating about how we experience the world. The same moment canlook entirely different depending on where we stand, how we feel, or what we choose to focuson. It’s like holding a prism to the light - turn it one way, and you see one colour; turn it another,and an entirely new spectrum emerges. The digital world works much the same way. It’s not static; it’s dynamic, multifaceted, andalive with possibilities, offering new patterns every time you shift your perspective. Thisyear’s dentsu e4m Digital Report - ‘Looking Through the Kaleidoscope’ - invites us to embracethat fluidity. It urges us to look beyond straight lines and fixed trajectories, to see thedigital landscape for what it truly is: a complex, vibrant interplay of ideas, technology, andhuman connection. We live in a time when it’s tempting to always look ahead - to chase the next trend, the nextbreakthrough. But here’s the truth: the present is where everything happens. The decisions wemake today don’t just prepare us for tomorrow - they actively shape it. Right now, AI isrewriting the rules of creativity and personalization. The rise of hybrid experiences isredefining how we connect in physical and digital spaces. And consumers are no longerpassiveparticipants;they’re co-creators,demanding authenticity and experiences thatresonate on a deeper level. What stands out to me, though, is that even in a world powered by algorithms and automation,the human element remains irreplaceable. The best ideas - the ones that truly transformindustries - don’t emerge from data alone. They come from a deep understanding of people:their hopes, fears, and desires. This is what makes the digital world so powerful. It’s not justabout technology; it’s about using that technology to create moments that matter. This report isn’t a forecast or a prediction. It’s a celebration of the here and now. It’s a guide tonavigating the complexity of our times with clarity and purpose. Because much like that prismin the light, the digital world offers endless possibilities - it all depends on how you choose tosee it. The question is: are you ready to embrace the present? Dr. Annurag Batra Chairman and Editor in Chief, BW BusinessWorldFounder, exchange4media Group FOREWORD The latest Dentsu e4m Digital Report 2025 puts forth a fascinating picture of how the Indianadvertising industry is evolving, largely driven by digital transformation, changing consumerhabits and the unstoppable rise of technology. Over the past year, digital has firmly established itself as the powerhouse of advertising,reshaping everything from media consumption to brand storytelling. Traditional channels likeTV and print still hold their ground but the momentum is clearly shifting towards social media,online video and programmatic advertising—all fuelled by data-driven strategies and anever-growing digital-first audience. One of the biggest takeaways from this year’s report is the changing face of engagement.Digital media isn’t just about visibility anymore; it’s about connection. Brands aren’t justtalking to consumers—they are crafting immersive, hyper-personalized experiences poweredby AI and real-time insights. The rise of retail media and unified commerce is making this evenmore seamless, blending online and offline touchpoints to create frictionless brand journeys. While FMCG continues to dominate ad spends, we are seeing some exciting shifts. The travelsector is making a big comeback, driven by a surge in domestic tourism campaigns, whiletelecom and e-commerce brands are doubling down on digital, allocating a huge chunk oftheir budgets to online platforms. Short-form video is quickly becoming the go-to format,capturing audiences with snackable, engaging content that merges entertainment withcommerce. Another fascinating trend the report highlights is the evolving tone of advertising. Humour,which has long been a staple of Indian advertising, is now making room for mindfulness-drivenstorytelling, especially for Millennial and Gen Z audiences. These consumers want brands tobe more than just sellers—they expect them to reflect their values, create meaningfulconversations, and foster community-driven engagement. And then there’s AI. No longer just a behind-the-scenes player, generative AI is now activelyshaping creativity, streamlining decision-making and helping brands produce smarter, moreemotionally resonant campaigns. The phygital revolution—where physical and digital retailexperiences merge—is also ensuring that brands stay connected with consumers across urbanand rural landscapes, offering accessibility like never before. At the heart of all this change, one thing is clear: the advertising industry is at an inflectionpoint. We’re in a kaleidosc