Digital dominates: The new king of advertising?

In 2024, digital advertising surpassed television for the first time to become the largest segment in India’s media and entertainment industry, accounting for 32% of the sector’s total revenue, as per the FICCI-EY Media & Entertainment Report 2025. Digital advertising grew by 17% to Rs 70,000 crore (US$8.2 billion), making up 55% of total ad revenue, driven by e-commerce ads (50% growth) and social media ads (11% growth).

The Indian media and entertainment (M&E) sector experienced a historic shift in 2024, with digital media surpassing television as the largest revenue contributor. The industry grew by 3.3% to reach Rs 2.5 trillion (US$29.4 billion), with digital media accounting for 32% of total revenues. This marks a fundamental change in consumer behavior and business strategies.

According to the FICCI-EY report Shape the Future, the industry is expected to grow by 7.2% in 2025 to Rs 2.68 trillion (US$31.6 billion) and reach Rs 3.1 trillion (US$36.1 billion) by 2027, driven primarily by digital platforms and new media formats.

Digital advertising surged 17% in 2024, reaching Rs 70,000 crore (US$8.2 billion) and making up 55% of total ad revenues. E-commerce advertising (50% growth) and social media ads (11% growth) were the biggest drivers. Digital subscription revenues also rose 15% to Rs 10,200 crore (US$1.2 billion), with paid video subscriptions expanding to 111 million across 47 million households. Streaming giants like Netflix, Amazon Prime Video, and JioHotstar capitalized on this shift by enhancing regional content, though cost-conscious strategies led to fewer new original productions.

While digital media thrived, traditional formats struggled. Television advertising revenue fell 6%, and subscription revenue declined 3%, as six million Pay TV households moved to Free TV and Connected TV. Connected TV households increased from 23 million to 30 million in 2024.

Print media saw modest ad revenue growth of 1%, supported by premium formats and affluent readership, though subscription revenues declined. Digital contributions remained below 5% of total revenue.

The film industry suffered a 5% revenue drop to Rs 18,700 crore (US$2.2 billion). Despite over 1,600 film releases, only 11 Hindi films crossed the Rs 100 crore mark, down from 17 in 2023. High ticket prices and weak content deterred audiences, while digital and satellite rights values fell 10%.

Online gaming faced setbacks due to a 28% GST on player deposits, causing a 6% revenue decline. Many users shifted to offshore platforms, though casual gaming grew 16% year-on-year.