Digital ad spend in India is expected to increase significantly over the next five years, reaching $21 billion by 2028, according to a report by Chitrangana eCommerce Consultants.

• This represents a compound annual growth rate of 19 to 21%.
• The report takes into account various forms of digital advertising, including enterprise spends, small and medium-sized business (SMB) spends, influencer marketing, affiliate marketing, and gaming.
• User-generated content is expected to play a significant role in this growth, with around 2.5 to 3 million creators driving marketing spending of $2.8 to $3.5 billion by 2028.
• Live commerce in India, led by influencers, is projected to reach $8 billion by 2030.
• Small and midsize businesses are expected to make up around 40% of total digital ad expenditure by 2028, thanks to the democratized access provided by digital platforms.
• In the short term, economic headwinds such as rising interest rates and energy crises may lead to slower growth in the ad market, with an estimated growth rate of 6 to 8% in the next financial year. However, the report predicts that macroeconomic engines will pick up momentum again by the following financial year.