Navigating the Evolving Indian Advertising Landscape: A Conversation with Prasanth Kumar

India's Advertising Growth: A Steady Ascent

GroupM forecasts a 7% growth for the Indian advertising market in 2025. While some may perceive this as conservative, Prasanth Kumar, CEO of GroupM South Asia, clarifies that this represents substantial progress. India remains a global powerhouse for advertising growth, with the slight difference between global (7.7%) and Indian (7%) projections falling well within anticipated trends.

Previous revisions stemmed from economic fluctuations and shifting spending habits, but new drivers like retail media, influencer marketing, and commerce-driven advertising have emerged. Digital advertising, powered by SMEs, e-commerce, and hyper-personalized marketing, now commands the lion's share at nearly ₹99,000 crore.

The Digital Dominance: A Paradigm Shift

Digital's projected 60% share of ad expenditure in 2025 signifies a seismic shift. Growing at 11.5%, digital claims almost ₹10,225 crore of the total ₹10,730 crore incremental ad spend. Its unparalleled reach, spanning from large corporations to SMEs and niche digital advertisers, underscores its dominance.

Retail media, with its impressive 40% CAGR since 2019, and the burgeoning quick commerce sector further fuel this digital surge. Brands must adapt by strategically balancing brand building with performance-driven advertising across a multitude of platforms.

The Tax Cut Catalyst: A Boost for Consumer Spending?

The government's recent income tax changes aim to boost disposable income and, consequently, consumer spending. While the full impact on ad spend won't be immediate, an evolution in consumer behavior is expected, with varied responses spanning saving, investment in durables, and increased discretionary spending.

A positive impact on advertising, particularly in sectors like automobiles, durables, and premium FMCG products, is anticipated in Q3 and Q4 of 2025.

Navigating Inflation: A Balancing Act

Lingering inflation, especially within essential categories, poses a challenge to consumer purchasing power and brand pricing strategies. Some brands have implemented price hikes, impacting demand. However, easing inflationary pressures could lead to price corrections, stimulating consumption and boosting ad spend in the latter half of 2025.

The IPL Arena: Continued Strength, Moderate Growth

The Indian Premier League (IPL) retains its allure as a prime advertising platform. While sustained strength is expected, growth will likely be moderate. Both TV and digital platforms anticipate strong advertiser participation, but exceeding 20% growth is unlikely due to the absence of significant startup sponsorships seen in 2022.

The Brand Building Renaissance: A Holistic Approach

The resurgence of brand building doesn't negate performance marketing. Effective strategies seamlessly integrate both. Brands previously focused solely on performance marketing are recognizing the value of brand equity, while traditionally brand-centric companies are embracing data-driven performance advertising.

The key lies in striking a balance between long-term brand value and short-term conversions, recognizing that every consumer touchpoint presents an engagement opportunity.

The CMO's Evolving Role: A Chief Growth Officer

The complexity of today's fragmented media landscape presents significant challenges for CMOs. Their role extends beyond brand building to encompass growth, agility, and a ubiquitous presence across relevant consumer touchpoints.

Prioritizing key growth areas, whether premium versus mass audiences or digital versus traditional, is crucial. Speed and adaptability are paramount, enabling marketers to capitalize on trends, consumer behavior shifts, and emerging media formats.

The CMO is transforming into a "chief growth officer," emphasizing business impact, real-time decision-making, and dynamic, full-funnel marketing strategies. In this ever-evolving landscape, adaptability is the key to leadership.