The growth in ad spends is being powered by a mix of corporate advertisers and small and medium businesses (SMBs), which account for almost half of digital ad spends on these platforms. Google and Meta have a massive reach in India, particularly among Gen Z users, while platforms such as Amazon and Flipkart are attracting ad budgets as they directly drive sales, with consumers arriving on these platforms with a clear intent to buy. Video has emerged as a key driver of ad revenue for both Google and Meta, with the two platforms leading short-form video consumption.
According to company filings accessed via Tofler, Google India reported an 11.3% year-on-year increase in gross advertising revenue to Rs 34,742 crore, driven by search and YouTube. Meta India reported a sharper 29% rise to Rs 29,392 crore, aided by growth across Instagram, Reels and WhatsApp.
“Google and Facebook have disrupted the advertisement space by dominating search, video and social media advertising in India. Quick commerce has also emerged as an effective channel to advertise for consumer brands,” said Uday Sodhi, partner at Kurate Digital Consulting. “Advertisers have moved ad budgets from TV and other media options to digital, including quick commerce. This is clearly visible in the jump in Google and Meta results announced recently.”
Retail media also saw strong growth, with Amazon, Flipkart and Myntra together earning Rs 15,573 crore in advertising revenue, up 26% year-on-year. Amazon Seller Services led the segment with Rs 8,342 crore, a 25% increase, followed by Flipkart Internet at Rs 6,317 crore, up 27%, and Myntra Designs at Rs 914 crore, up 28%.
Industry experts said quick commerce has emerged as a key category attracting significant advertising investments, particularly from fast-moving consumer goods companies seeking to drive direct sales through these platforms.
“Advertising has been shifting to digital for several years, but even digital ad growth is now moderating as the base has become significantly larger,” said Anand Chakravarthy, chief growth officer at Omnicom Media India. He added that digital advertising is becoming increasingly fragmented across search, social, over-the-top, connected TV, ecommerce and quick commerce platforms.
“A large part of the growth at platforms like Google and Meta continues to come from SMB advertisers, many of whom were never active on traditional media before. This pool is still expanding, supported by the overall growth in advertising spends,” Chakravarthy said.
Google India operates as a reseller of advertising space for the Google AdWords programme and other Google advertising products and services in India. In 2024-25, Google India paid Rs 32,047 crore to Google Asia Pacific Pte Limited for the purchase of ad space, compared with Rs 28,267 crore in the previous fiscal.
Meta India, which operates as Facebook India Online Services, has shifted to an operating licence agreement with Meta USA. Under this arrangement, the company compensates Meta USA through royalty payments and infrastructure charges for maintaining intellectual property and technical infrastructure. Meta India incurred royalty charges of Rs 23,248 crore in 2024-25, compared with Rs 17,887 crore a year earlier.
Meta’s net advertising revenue stood at Rs 2,170 crore, up from Rs 1,817 crore in 2023-24, while Google India’s net advertising revenue declined to Rs 2,694 crore from Rs 2,954 crore a year earlier.
According to Bain & Company’s report Advertising in the Digital Age, in India and Around the World, India’s advertising market, valued at $16–18 billion in 2024, is projected to grow at a compound annual rate of 10–15%, outpacing global averages. Digital advertising, which accounts for 50–60% of India’s total advertising spend, is expected to nearly double by 2029 to $17–19 billion.
Small and medium-sized enterprises and direct-to-consumer brands are becoming increasingly important contributors. Their share of digital ad spend is projected to rise to 40–42% by 2029 from 37% in 2024, driven by mobile-first marketing, deeper integration with ecommerce platforms and performance-focused strategies, the report said.
