New Delhi — India is adopting new advertising technologies faster than in the past, with AI-native formats expected to become mainstream within the country over the next three years, according to a report by Redseer Strategy Consultants.
The report said programmatic advertising took about five to seven years to become mainstream in India after gaining traction in the United States, while connected TV adoption lagged by four to five years. AI-native advertising formats, however, are expected to reduce that gap to about three years as India’s large digital consumer base and adaptable technology ecosystem accelerate adoption.
India’s digital advertising market is projected to grow from nearly $11 billion in 2025 to between $19 billion and $22 billion by 2030, representing annual growth of 10% to 15% and outpacing the global digital advertising market.
Digital advertising surpassed traditional advertising in India in 2023 and is expected to account for about 70% of total advertising spending by 2027.
“Mobile still anchors the market, while connected TV and retail media are drawing more advertiser interest. Quick commerce adds a distinct opportunity because the distance between seeing a product and buying it can be unusually small,” the report said.
Mukesh Kumar, Associate Partner at Redseer Strategy Consultants, said India’s advertising market is increasingly able to bring global advertising concepts to commercial scale more quickly.
“India is becoming a market where global advertising ideas can find commercial scale much sooner. The shift matters because advertisers are getting access to richer consumer signals, stronger commerce linkages and new surfaces at the same time,” Kumar said.
He added that the shift is making advertising more measurable for brands and bringing marketing closer to the point of purchase, while encouraging platforms to invest in first-party data, distribution and monetization capabilities.
Redseer expects the global advertising industry to increasingly move toward AI-native consumer experiences and new ad formats. Platforms combining advertiser and publisher reach with owned consumer channels, software development kit distribution and first-party data are likely to play a larger role as advertising budgets increasingly target high-intent consumer interactions.
The report said conversational AI advertising generated more than twice the click-through rate of traditional search advertising, while lower-funnel formats produced conversion rates more than 70% higher. (Source: IANS)
