India's Ad Market Poised for Growth in 2026 Amid Volatility

Mumbai: India's advertising market is set to continue growing in 2026 despite geopolitical tensions, inflationary pressures and shifting consumer behaviour, said WPP Media South Asia CEO Prasanth Kumar, describing the post-pandemic business environment as an era of unprecedented volatility where marketers are “juggling 20 balls instead of two or three.”

Earlier, WPP Media had forecast India’s advertising market to grow nearly 10% and cross ₹2 lakh crore in 2026. Kumar said the industry remains on a growth path, although the pace of expansion may vary amid an increasingly volatile environment. “I think there will be growth in 2026, but to what extent, we will have to assess every quarter,” Kumar told ET.

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Despite current uncertainty, Kumar maintained that the market outlook remains positive. “It is not accurate to assume that because uncertainty exists, everything will collapse. I do not think that is the case,” he said.

According to Kumar, marketers today are dealing with a far more fragmented marketplace, where consumer choices, media platforms, and purchase pathways have expanded dramatically.

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“Options have increased, fragmentation has gone up and uncertainty is also rising,” he said, citing inflation, geopolitical conflicts and shifting consumption patterns as external factors outside everyone's control.

He described the post-2020 period as one of unprecedented volatility. “Earlier, volatility had depth. Today, the width of volatility has increased,” Kumar said, comparing the current environment to juggling multiple problems at once. “Earlier, you were juggling two or three balls. Today, it feels like you are juggling 20.”

He also said the IPL advertising market had remained resilient despite the collapse in spending from online gaming firms, historically among the largest advertisers during the tournament.

“IPL has done quite okay,” he said, adding that connected TV (CTV) has performed well this year.

While advertising is often among the first expenses scrutinised during periods of stress, Kumar argued that brands need to invest in long-term brand building, particularly in high frequency categories.

Instead, brands are increasingly trying to strike a balance between immediate outcomes and sustained consumer engagement.

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At the same time, the advertising ecosystem itself is undergoing a structural change. Demand generation is no longer limited to traditional channels, with marketers increasingly relying on marketplaces, quick commerce, direct-to-consumer platforms, social commerce, and influencer-led transactions.

“You cannot think in silos. You must look at things holistically,” Kumar said, arguing that marketers need integrated strategies rather than moving budgets entirely into newer platforms.

He also highlighted artificial intelligence as an increasingly important budget line for organisations, even as businesses are still learning how to manage spending.

“AI is one of the most talked-about budget lines today, and organisations are continuously refining their investments as the landscape is evolving,” Kumar said.

Unlike some internet-based tools earlier, AI platforms increasingly require paid subscriptions, credits, and computing power as adoption grows across employees and enterprises. However, he rejected concerns that AI could reduce the role of agencies, arguing instead that automation would improve productivity and free up time for highervalue work.