Digital marketing in India – statistics & facts

Marketing in India has evolved rapidly to keep up with technology and the ever-changing demands of consumers. The global trend further suggests more emphasis being laid on marketing than advertising. Digital media has emerged as a strong contender that is expected to become the leading marketing channel in the years to follow. Given the country’s tech-savvy nature, marketers were also wise to swiftly adopt digital strategies as indicated by the growing share of digital marketing budgets each year.


Furthermore, the digital media market is expected to grow at a compound annual rate of over 30 percent, sustained by the considerable media spends made by the FMCG, e-Commerce and financial service verticals. A sizeable digital advertising industry lies at the heart of the country’s marketing ecosystem. However, advertising is lateral to the broader process of marketing that is concerned with other aspects such as production, price, and promotion.

Digital marketing practices

Over time Indian businesses have realized the importance of building their presence online, choosing to handle their marketing operations either internally or outsource them to digital marketing agencies. Among the myriad digital solutions providers populating the Indian market, agencies such as iProspect and WatConsult are key players. To optimize their online marketing activities, businesses must carefully consider the platforms and channels that help them reach their target group.


While Facebook Marketplace used to be the popular choice to drive online sales, marketing executives set their sights on reverting to their own company’s e-commerce platform to increase sales in the years to follow. Simultaneously, online video proved to be the channel with the highest returns on investment followed by branded websites and email newsletters.


The onset of the age of artificial intelligence (AI) has already led to Indian businesses exploring the adoption of AI in their marketing strategies. Generative AI tools are being employed with the aim of enhancing customer experience in India, with chatbots and content creation emerging as the most popular use cases. However, a hint of trepidation and caution persists even among those that have fully integrated AI into their marketing strategy, given the concerns over data privacy and the reliability of AI knowledge.

Industry outlook

As the digital world gears up for the era of Web 3.0, Indian marketers are now exploring their investment options in marketing technology. Engaging newer audiences and increasing brand awareness continued to be the chief priorities when compiling digital marketing strategies. Reports further indicated that social networks were still the leading online source used to research brands. Moreover, the Indian influencer marketing industry is in a phase of rapid expansion and is expected to be worth 28 billion Indian rupees by 2026.


Despite technological advancements having made it possible to enhance marketing in India, a fair share of marketing agencies continues to face challenges in their path to being digitally transformed. Some of the main drawbacks identified were limited budgets and the prevailing skill level of the workforce.