MUMBAI (Feb 19, 2026) — At the launch of WPP Media’s latest This Year Next Year (TYNY) forecast, South Asia CEO Prasanth Kumar highlighted that India’s relatively low advertising-to-GDP ratio is a massive “structural upside” for the industry.
The Gap vs. The Opportunity
While India’s advertising intensity lags behind mature economies, the trajectory shows a clear upward trend:
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The Current Stats: India’s AdEx-to-GDP ratio sits at 0.5%, significantly lower than the UK (1.5%), the US (1.4%), and China (1.1%).
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The 2030 Vision: WPP projects the ratio will double to 1.0% by 2030.
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Economic Catalysts: This growth is tied to rising wealth; as per capita income climbs from the current $2,800 to $4,000, advertising investment is expected to surge.
Why the Gap Exists
Kumar noted that India’s current GDP is heavily driven by sectors that traditionally spend less on advertising:
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Low-Intensity Sectors: Manufacturing, agriculture, pharma, and IT services.
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The Shift: The opportunity lies in moving toward more consumer-facing, technology-driven categories and bringing smaller businesses into the formal advertising ecosystem.
Digital & AI Transformation
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Digital Dominance: Digital now accounts for 68% of total ad spend in India.
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Performance-Led Growth: Kumar emphasized that the convergence of AI, commerce, and data privacy is redefining how brands connect with audiences, effectively “leapfrogging” traditional ad models.
