Retail Platform Advertising - India

In India, ad spending in the Retail Platform Advertising market is projected to reach US$2.10bn in 2025.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2025-2030) of 10.22%, leading to a projected market volume of US$3.41bn by 2030.
Furthermore, the average ad spending per user in the Retail Platform Advertising market in India is projected to amount to US$7.77 in 2025.
In global comparison, most ad spending will be generated the China, which is expected to reach US$71.22bn in 2025.
In India, the retail platform advertising market is witnessing a rapid shift towards personalized digital experiences, driven by increasing consumer engagement and e-commerce growth.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

Retail Platform Advertising: market data & analysis

The Retail Platform Advertising Market in India is witnessing mild growth, influenced by factors such as the increasing penetration of e-commerce, evolving consumer behaviors, and the rising importance of targeted advertising strategies across digital platforms.

Customer preferences: In India, consumers are increasingly gravitating towards personalized shopping experiences, driven by the rise of e-commerce and digital platforms. There is a growing preference for brands that leverage data analytics to offer tailored recommendations, reflecting a shift towards convenience and efficiency. Additionally, younger demographics are favoring sustainable and ethically sourced products, prompting advertisers to adopt more socially responsible messaging. This cultural shift towards conscious consumerism is influencing advertising strategies, emphasizing authenticity and connection over traditional promotional tactics.

Trends in the market: In India, the Retail Platform Advertising Market is experiencing a significant shift as brands increasingly adopt omnichannel strategies to engage consumers across various touchpoints. The rise of social commerce is notable, with platforms integrating shopping features that allow users to purchase directly from social media. Additionally, augmented reality (AR) is being leveraged to enhance online shopping experiences, allowing consumers to visualize products in their environment. This trend emphasizes the importance of interactive and immersive advertising, which not only captures attention but also fosters brand loyalty, ultimately reshaping how stakeholders approach consumer engagement.

Local special circumstances: In India, the Retail Platform Advertising Market is shaped by diverse cultural preferences and regional diversity, prompting brands to tailor their advertising strategies to resonate with local audiences. The prominence of festivals and local events drives seasonal marketing campaigns that leverage social media platforms for targeted outreach. Additionally, language diversity necessitates multilingual advertising to engage consumers effectively. Regulatory factors, such as data privacy laws, further influence how brands utilize consumer data for personalized marketing, ensuring compliance while maximizing engagement.

Underlying macroeconomic factors: The Retail Platform Advertising Market in India is significantly influenced by macroeconomic factors such as economic growth, consumer spending, and digital penetration. The rising middle class and increasing disposable incomes are boosting consumer demand, prompting brands to invest more in advertising. Additionally, the government's push for digitalization and infrastructure development enhances internet accessibility, facilitating online retail growth. Global economic trends, like shifts in e-commerce and mobile usage, also play a critical role, as they drive innovation in advertising strategies. Furthermore, fiscal policies that support digital marketing initiatives can enhance market performance, attracting both domestic and international players.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Retail Platform Advertising - India

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Demographics

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