Programmatic advertising in India is at an inflection point, fueled by rapid digital adoption, evolving consumer behaviors, and a growing emphasis on data-driven marketing strategies. India's programmatic advertising market is projected to grow exponentially, driven by increased adoption of digital channels. According to a latest study, in Q3 2024, smartphone shipments in India reached 46 million units, reflecting 5.6% growth YoY. Brands, thus, have an unparalleled opportunity to engage audiences through personalized and scalable campaigns. Key sectors, such as eCommerce, FinTech, and OTT platforms, will lead this charge, capitalizing on India's vibrant consumer base. The widespread adoption of mobile internet and the increase in digital content consumption have transformed how brands engage with consumers. As a result, the India mobile market presents a fertile ground for programmatic advertising to thrive.
Programmatic advertising automates the buying and selling of ad space using data-driven technology. This method uses algorithms and real-time bidding (RTB) to target specific audiences with precision, making it far more efficient than traditional advertising methods. By utilizing vast amounts of data, programmatic advertising ensures that ads are displayed to the right people at the right time, optimizing both reach and return on investment (ROI).
This blog explores the trends that are likely to define programmatic advertising in India in 2025 and provides insights for marketers aiming to harness its potential.
Trends Shaping Programmatic Advertising in India in 2025
Several key trends are poised to redefine programmatic advertising in India, driven by advancements in technology, increased adoption among advertisers, and the need for personalization while maintaining privacy compliance.
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1. Greater Adoption of Programmatic Advertising Among Advertisers
Currently, programmatic adoption in India lags behind Western markets like the US and Europe, where automated ad-buying dominates a substantial share of the digital advertising ecosystem. This is partly due to market fragmentation in India, the wide range of consumer behavior, and poor data infrastructure. However, growth in internet penetration, increased smartphone usage, and advancement in programmatic technologies are changing this scenario. Indian marketers increasingly see programmatic as necessary for running effective and scalable digital campaigns rather than just an option. As the global digital advertising market is going to surpass $600 billion by 2025, programmatic will be at the center of enabling targeted, efficient, and measurable campaigns.
2. AI Innovations Driving Programmatic Evolution
Artificial Intelligence (AI) remains at the core of programmatic advertising, enabling unprecedented levels of efficiency, precision, and innovation. As AI-driven solutions continue to evolve, we will see programmatic-based advertising to offer more value to a market like India. We will continue to see:
- Personalization at Scale:
Predictive Analytics: Advanced machine learning models will enhance audience segmentation and behavior prediction, enabling advertisers to allocate budgets more effectively to high-performing segments.
Data Optimization: AI-powered algorithms will refine data analysis, improving targeting accuracy and reducing waste in ad spend.
Creative Optimization: Automated tools will generate personalized, engaging ad formats tailored to user contexts and preferences, maximizing engagement and ROI.
3. Generative AI: Transforming Creativity in Programmatic
GenAI has been a buzzword for much of 2024, and will continue to make headlines this year. Marketers will see more value-driven impact of GenAI-based solutions to become a catalyst for programmatic adoption in India. Using GenAI-based programmatic solutions, advertisers can improve their campaigns by:
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Dynamic Creative Personalization: Adapt ad visuals, copy, and layouts in real time to suit individual user preferences and engagement patterns.
Cost-Efficient Production: Automate the creation of high-quality visuals, videos, and animations, reducing time and cost.Contextual Messaging: Tailor messaging to user intent and situational context, improving relevance and conversion rates.
Visual Storytelling: Produce diverse creative assets that resonate with India’s culturally rich and varied audience segments.
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4. Connected TV: A Growing Powerhouse
The proliferation of smart TVs and streaming platforms has firmly established Connected TV (CTV) as a major pillar in the digital advertising landscape in India. In 2025, we will continue to see CTV making an impact on both brand and performance campaigns using programmatic technology.
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Measurability & Performance: Brands have been largely using CTV for storytelling and engagement, but in 2025 we will continue to see more measurable and outcome-driven impact of CTV advertising as advertisers derive action on mobile through CTV.
Interactive Ad Formats: Programmatic technology enables dynamic and engaging ad experiences on CTV, incorporating clickable overlays, QR codes, and gamified elements to capture viewer attention and drive interaction. In 2025, we will continue to see advertising formats on CTV to become more engaging and interactive.
5. Cross-Device Attribution: Bridging the Gaps
Cross-device attribution will play a critical role in measuring the effectiveness of programmatic campaigns by:
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Unified User Journeys: Tracking and analyzing user behavior across devices to provide a holistic view of campaign performance.
Optimized Budget Allocation: Enabling advertisers to identify high-impact touchpoints and allocate resources effectively.
This capability will empower advertisers to make informed decisions and maximize ROI across diverse digital ecosystems.
6. Ad Creatives and New Formats
Programmatic technology’s greatest impact for advertisers is through the creative execution in campaigns, allowing for immersive experiences. For instance, Dynamic creative optimization (DCO) is transforming the way brands approach programmatic advertising by delivering highly personalized and visually engaging content in real time. In 2025, we will continue to see innovation around tailored creatives that would significantly enhance click-through rates (CTR) and reduce wastage in ad spend. We will also continue to see incorporation of AR/VR elements to engage audiences in interactive and memorable ways. Another trend could be around leveraging gamification to drive higher engagement and conversions, as well as implementation of shoppable ads which would particularly be interesting for eCommerce landscape in India.
Preparing for the Future of Programmatic Advertising in India
Programmatic advertising is no longer just an option for marketers in India; it has become the foundation of their strategies, especially for those aiming to achieve precision and scale. Looking forward to 2025 and beyond, rapid advancements in technology, evolving privacy regulations, and changing customer expectations are set to redefine how marketers approach this dynamic ecosystem.
The true potential for programmatic lies in adaptation to complexity: reaching a multilingual audience in regional India, using generative AI to craft hyper-relevant creatives, or even navigating the new privacy norms of a cookieless future. For marketers, that means mastering the tools and platforms, but also a renewed strategy that fits with the values and behaviors of an ever-diversifying, ever-dynamic consumer base.
It's about the next few years, not "keeping pace" with new technologies, but using programmatic advertising as a means of building innovative, empathetic, accountable campaigns. Brands can now only harness these possibilities, rather than just trying to optimize campaign performance, focus on creating relevant connections—transforming impressions into engagement and transactions into lasting trust.
