E-retail media in India sees 56% growth, projected digital ad spend hits ₹98,000 crore by 2027. – Tuesday, February 3, 2026

E-retail media is rapidly gaining traction in the digital advertising landscape, with a remarkable 56% year-over-year growth in India. According to a recent dentsu-e4m report, digital ad spends in the region are projected to reach ₹98,000 crore by 2027, underscoring the growing dominance of e-retail platforms as key advertising channels.

Who should care: VPs of retail, store operations leaders, eCommerce directors, customer experience teams, and retail technology decision-makers.

What happened?

The latest dentsu-e4m report reveals a significant transformation in India’s digital advertising sector, driven primarily by the rapid rise of e-retail media. Currently, total digital ad spend in the region has surpassed ₹71,000 crore, with e-retail media accounting for a substantial portion of this growth. Specifically, e-retail media ad spend has surged by 56% year-over-year, signaling a fundamental shift in how brands allocate their advertising budgets. This trend reflects a broader evolution where online retail platforms are no longer just sales channels but have become powerful advertising ecosystems in their own right. The report projects digital ad spend to climb to ₹98,000 crore by 2027, indicating a sustained upward trajectory fueled by deeper e-commerce penetration and expanding digital infrastructure. Retailers are making strategic investments to enhance their digital capabilities, aiming to capture a larger share of consumer attention and spending within these platforms. This growth is also supported by the increasing sophistication of digital tools that enable more targeted and measurable advertising campaigns. Overall, the report highlights a pivotal moment for businesses seeking to optimize their marketing strategies in an increasingly digitized marketplace.

Why now?

The surge in e-retail media’s prominence is closely tied to shifts in consumer behavior accelerated over the past 18 months. The pandemic significantly boosted digital adoption, with more consumers turning to online platforms for their shopping needs. In response, retailers have intensified their digital advertising efforts to meet customers where they are spending more time. This shift aligns with a broader industry trend where digital channels have become central to marketing strategies, offering precision targeting and measurable outcomes that traditional media cannot match. Additionally, advancements in technology and consumer data analytics have empowered retailers to deliver more personalized and effective marketing campaigns, further driving investment in e-retail media.

So what?

The rapid expansion of e-retail media represents a strategic inflection point for retailers, who must now view these platforms as essential components of their advertising mix. This shift opens new avenues for revenue growth while enhancing customer engagement through highly targeted marketing. Retailers with a strong online presence are particularly well-positioned to leverage these platforms to boost both sales and brand visibility. Ignoring this trend risks falling behind competitors who are capitalizing on the data-driven capabilities of e-retail media.

What this means for you:

• For VPs of retail: Prioritize investments in digital advertising infrastructure to unlock new revenue streams and stay competitive.
• For eCommerce directors: Integrate e-retail media strategies into your marketing plans to expand customer reach and deepen engagement.
• For customer experience teams: Leverage data analytics to personalize marketing efforts and enhance consumer interactions across digital channels.

Quick Hits

• Impact / Risk: The rise of e-retail media could disrupt traditional advertising models, requiring retailers to adapt swiftly or risk losing market share.
• Operational Implication: Retailers must strengthen their digital advertising infrastructure to remain agile and competitive in this evolving landscape.
• Action This Week: Assess your current digital ad strategies, explore partnerships with leading e-retail platforms, brief your executive team on emerging trends, and evaluate your customer data analytics capabilities.