INNOVATIONS IN THE KALEIDOSCOPE LANDSCAPE

The 9th edition of the Dentsu e4m Digital Report 2025 adopts a unique perspective, emphasizing the importance of acknowledging the complex interconnections that define the digital landscape. Under the theme “Looking Through the Kaleidoscope,” the report highlights the significance of the present moment and the myriad experiences driving our digital future.

In today’s world, the digital ecosystem is in a constant state of flux, with data, technology, and consumer behavior evolving simultaneously. By recognizing that the digital realm is not a linear path but a collection of interconnected realities, the report encourages embracing the fluidity of the present.

In this context, the kaleidoscope serves as an apt metaphor, demonstrating how no single view offers a complete understanding of the ever-changing digital landscape. By acknowledging and exploring multiple perspectives, businesses and marketers can better comprehend the rapidly shifting nature of digital platforms and experiences, unlocking their full potential in a fast-paced and interconnected world.

The Dentsu e4m Digital Report 2025 urges readers to stay agile and adaptive in their approach to digital strategy, leveraging the power of the present moment and focusing on the intersection of innovation, creativity, and consumer experience to navigate the complex yet promising world of digital marketing.

The digital world has transcended the notion of merely predicting upcoming trends; it now emphasizes the importance of acknowledging and leveraging the patterns that are shaping the present. Key factors such as the rise of AI, immersive experiences, decentralized technologies, and the growing demand for personalization and human-centric solutions are transforming the digital landscape in real time.

The report delves into this evolving landscape, highlighting how various overlapping realities are driving growth, disruption, and transformation across industries. These interconnected elements create a complex yet dynamic ecosystem, akin to a kaleidoscope that mirrors diverse perspectives, needs, and innovations.

Moreover, the report recognizes that the present is not just a pathway to the future but a transformative period where digital shifts are redefining industries, AI is unleashing new possibilities, and creativity and technology intersect to shape experiences in real-time.

In essence, embracing the power of the present moment and understanding the interconnected facets of the digital landscape is crucial for businesses and marketers aiming to stay ahead in this rapidly evolving environment. By focusing on the intersection of innovation, creativity, and consumer experiences, businesses can harness the potential of the digital world and contribute to its ongoing transformation.

The highly-anticipated report, “Looking Through the Kaleidoscope,” was jointly unveiled by dentsu and the exchange4media Group at a prestigious event in Mumbai. In the presence of prominent industry leaders, the report provided valuable insights into the evolving trends and media spends within the Indian advertising industry.

Embracing the theme of “Looking Through the Kaleidoscope,” the report sheds light on the importance of focusing on the present and understanding the intricate dynamics of the digital landscape. It acknowledges the real-time shifts in data, technology, and consumer behavior that contribute to the complexity of the digital ecosystem.

By offering a comprehensive analysis of the current advertising landscape, the report serves as a guiding light for industry professionals, enabling them to make informed decisions and adapt to the ever-evolving market. This collaboration between dentsu and exchange4media Group demonstrates their commitment to fostering growth and innovation within the Indian advertising industry.

According to the Dentsu e4m Digital Report 2025, the Indian advertising industry is expected to witness a growth rate of 6.5 percent, reaching a market size of Rs 1,07,664 crore by the end of 2025. This growth is projected to accelerate in 2026, with a rate of 7.2 percent, driving the market size to Rs 1,15,460 crore. The report identifies digital media as the primary driver of this transformation, with a Compound Annual Growth Rate (CAGR) of 19.09 percent, reflecting substantial investments in online platforms.

Several key factors contribute to this growth, including increased spending on reality shows, sports content across TV and Over-The-Top (OTT) platforms, and large-format print advertising. These trends demonstrate the evolving preferences of Indian consumers and the growing importance of digital platforms in shaping the advertising landscape. As the industry continues to expand and diversify, businesses and marketers must stay abreast of these changes to capitalize on emerging opportunities and effectively engage with their target audiences.”

The Indian advertising industry grew by 6.3 percent in the previous year, closing 2024 with a market size of Rs 1,01,084 crore. This growth was primarily driven by the general and assembly elections, which triggered a significant surge in ad spending. Looking ahead, the Indian advertising landscape is poised for modest growth, with major sporting events such as IPL 2025, the ICC Champions Trophy, and the Asia Cup 2025, along with other cricketing events, expected to be key growth drivers this year. These events will offer significant opportunities for brands to engage with diverse audiences, ensuring the industry’s continued upward momentum,” the report stated.

According to the Dentsu e4m Digital Report 2025, key sectors such as e-commerce, automotive, Banking, Financial Services, and Insurance (BFSI), Fast-Moving Consumer Goods (FMCG), and retail remain dominant forces in both digital and traditional media. The report highlights the significance of offers and promotions across retail media, e-commerce, and Direct-to-Consumer (D2C) platforms, which are expected to significantly drive consumer engagement.

In terms of market share, the FMCG segment continues to lead the Indian advertising space, contributing 31 percent (Rs 31,467 crore) of the total advertising spend. This is followed by the e-commerce and quick commerce sectors, which account for 15 percent (Rs 15,509 crore) of the market, capitalizing on the rising trend of impulse buying. Additionally, the consumer durables category holds a notable 7 percent share of the overall advertising industry.

These insights demonstrate the diverse and evolving nature of market spending within the Indian advertising landscape. As different sectors adapt to changing consumer preferences and leverage various media platforms, businesses and marketers must remain vigilant and adaptable to effectively navigate this dynamic environment and optimize their advertising strategies.

The Indian digital advertising industry closed 2024 with a market size of Rs 49,251 crore, reflecting a growth rate of 21.1 percent compared to 2023. Digital media is expected to continue outpacing other advertising forms, driven by key factors such as social media, video platforms, and AI-driven ad placements. These elements are projected to contribute to a 20.2 percent growth in 2025, with the digital advertising market expected to reach Rs 59,200 crore by the end of the year. This growth underscores the ongoing dominance and expansion of digital channels in the Indian advertising landscape,” the report said.

Narayan Devanathan, President & Chief Strategy Officer, South Asia, Dentsu India, explored into “The Janus Perspective” at the Dentsu e4m Advertising Report launch, exploring how current trends shape the future of advertising.

At the dentsu e4m Digital Advertising Report 2024, Narayan Devanathan, President & Chief Strategy Officer, South Asia, dentsu, delivered an insightful presentation on the significance of understanding the present to shape the future of the industry. Drawing upon mythology, market shifts, and emerging trends, he emphasized the importance of finding balance between innovation and insight in the pursuit of progress.

Devanathan observed that digital advertising, which was once an emerging sector, is now on the cusp of dominating the market, with 61 percent of the advertising market predicted to be digital by 2026. Despite this remarkable growth, he cautioned against complacency and emphasized the need for the industry to remain adaptable and agile in the face of change.

By fostering a mindset that values both innovation and a deep understanding of the present, Devanathan encouraged brands to navigate the dynamic advertising landscape effectively, ensuring continued growth and success in the years to come. His address provided a thought-provoking perspective on the future of digital advertising and urged industry professionals to harness the power of the present in their pursuit of long-term prosperity.

He mentioned – “There will always be an intersection or interplay between the intelligence that machines can provide—often more efficiently than us—and the imagination that only we can bring to the table.”

A key theme of his talk was the blurring of boundaries between digital and traditional media, citing the rise of connected TV as a prime example. He posed thought-provoking questions: Is connected TV just TV? Is it digital? Or is it both? The answer, he suggested, lies in embracing fluidity rather than rigid categorization. Devanathan also explored the interplay between human creativity and artificial intelligence, stressing that while machines can enhance efficiency, imagination remains a uniquely human trait.

Devanathan contextualizes this shift as part of a broader “kaleidoscopic reality,” where fragmented consumer touchpoints demand fluid strategies. The telecom sector exemplifies this transition, allocating 66% of its media budget to digital channels, primarily distributed across online video (27%), social media (31%), and paid search (31%)14. Similarly, e-commerce brands direct 61% of their budgets to digital, leveraging paid search (39%) and social media (31%) for performance-driven campaigns.

Sectoral Drivers of Digital Adoption

FMCG: Despite its traditional reliance on TV, the FMCG sector now allocates 44% of its digital budget to online video, recognizing its power in visual storytelling.

Pharmaceuticals: Digital’s share rose to 49% in 2024, driven by hyperlocal targeting and educational content.

Retail Media: E-commerce platforms like Amazon and Flipkart have evolved into full-funnel marketing ecosystems, blending transactional efficiency with personalized engagement.

Ravi Santhanam, Group Head, CMO & Head – Direct to consumer products, HDFC Bank e4m dentsu delivered the keynote address on In between Old World Values and New World Ideals: The Interesting Intersections that define Marketing Success.At the dentsu-e4m Digital Advertising Report 2025 launch, HDFC Bank’s Ravi Santhanam started his presentation with a thought-provoking question: “What defines marketing success in today’s connected world?”

He continued, “The old world is all about storytelling and the new world is all about tech. That’s the big difference between the marketing eras. When we started working maybe 30 years ago, we were told the job of marketing was to generate demand. That’s where it stopped. Today, the job of marketing is not only to generate demand but also to fulfil that demand. It’s the big difference we are seeing because of technology.”

Devanathan further delved into the dual nature of technology and its impact on the industry. While acknowledging that technology has accelerated innovation and opened new avenues for growth, he also addressed the apprehension surrounding job loss due to automation. This dichotomy presents a unique challenge for industry professionals as they strive to embrace the benefits of technological advancements while navigating the potential pitfalls.

He went on to discuss the transformative effects of technology, particularly in the realms of hyper-personalization and omnichannel experiences. As businesses increasingly leverage data to create targeted and tailored experiences for consumers, the role of technology in facilitating these strategies becomes ever more apparent.

Ultimately, Devanathan’s insights shed light on the complex relationship between technology and the advertising industry, urging professionals to strike a balance between progress and caution in order to fully realize the potential benefits of technological innovation.”For monetisation of traffic, you need the eyeballs to come onto the screen. But imagine if I have an agentic Gen AI that I can instruct to complete tasks, what will happen to those eyeballs? What will happen to the people designing these interfaces?” he questioned.

Devanathan further explained how technology has been reshaping various industries, such as advertising, filmmaking, music, and education, by significantly influencing consumer behavior. Despite the rapid advancements in technology, he pointed out that certain elements remain constant throughout history. Whether it was the introduction of the steam engine, electricity, motor cars, or now Generative AI, these advancements have been met with a combination of excitement, greed, skepticism, and fear.

By examining historical patterns, Devanathan provided perspective on the current technological revolution, reminding the audience that it is essential to balance enthusiasm for progress with caution and preparedness for the potential challenges that come with it. This holistic approach can help industry professionals capitalize on the benefits of technology while mitigating risks and uncertainties.

Companies must balance traditional values like quality, customer service, and reputation with emerging digital-age ideals like personalization, data-driven decision making, and social responsibility, to achieve marketing success by effectively connecting with consumers across diverse cultural and technological landscapes.

In conclusion, successful marketing today requires a delicate balance between established values like quality and reputation with new-world ideals like digital engagement, personalization, and social responsibility, allowing brands to connect with consumers on a deeper level while staying relevant in the modern market.