The Rise of Programmatic Advertising in India and Its Future

By Kevin B. Simon

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In the bustling tapestry of India’s digital landscape, a quiet revolution has been brewing—one that promises to redefine how brands connect with consumers. Programmatic advertising, the automated, data-driven process of buying and selling digital ad space, has emerged as a transformative force in India’s marketing ecosystem. From its nascent stages a decade ago to its current dominance, this technology has shifted the paradigm from traditional, manual ad placements to a sophisticated, real-time bidding system that prioritizes precision, scale, and efficiency. As India stands on the cusp of a digital-first future, the rise of programmatic advertising signals not just a trend but a fundamental evolution—one with immense potential and complex challenges ahead.

The Dawn of Programmatic in India

India’s journey with programmatic advertising began in the mid-2010s, a time when the country’s internet penetration was accelerating, driven by affordable smartphones and plummeting data costs. The digital advertising market, once overshadowed by print and television, started to gain traction as brands recognized the potential of reaching a growing online audience. Programmatic advertising entered this scene as a disruptive innovation, offering a stark contrast to the labor-intensive, negotiation-heavy processes of traditional media buying.
Initially, adoption was slow. Indian marketers, accustomed to the tangible reach of television and newspapers, viewed programmatic as an untested novelty. Agencies and brands operated in silos, with limited understanding of how real-time bidding (RTB), demand-side platforms (DSPs), and supply-side platforms (SSPs) could deliver value. However, the exponential rise in mobile internet usage—India boasted over 886 million internet users by the end of 2024—changed the calculus. According to industry estimates, digital ad spending in India crossed $18 billion in 2023, with programmatic accounting for a significant chunk, reflecting a threefold increase in its share of digital display ad buying since 2019.
This growth wasn’t accidental. The proliferation of e-commerce, fintech, and over-the-top (OTT) platforms fueled demand for scalable, targeted campaigns. Companies like Amazon, Flipkart, and Jio saw programmatic as a way to optimize their ad spends, reaching specific consumer segments with personalized messages. Meanwhile, the availability of inexpensive smartphone technology and 4G (and now 5G) networks amplified mobile ad consumption, making programmatic an ideal fit for a mobile-first market.

Why Programmatic Took Off

The appeal of programmatic advertising lies in its efficiency and precision. Unlike traditional methods, which rely on broad demographics and manual negotiations, programmatic leverages data—demographics, behavior, interests, and context—to deliver ads to the right audience at the right time. In a diverse nation like India, with its 22 official languages and myriad cultural nuances, this granularity is invaluable. For instance, a brand can target Hindi-speaking Gen Z gamers in Tier-II cities while simultaneously reaching Tamil-speaking professionals in Chennai, all within the same campaign.
Automation is another key driver. By eliminating intermediaries and streamlining the ad-buying process, programmatic reduces costs and speeds up execution. Real-time bidding ensures that ad impressions are auctioned off in milliseconds, maximizing return on investment (ROI). This efficiency resonates in a market where budgets are often tight, and marketers seek measurable outcomes. A 2024 TAM AdEx India report noted that programmatic accounted for 88% of total digital ad impressions, underscoring its dominance as the preferred method for ad deployment.
The rise of video content and mobile apps has further propelled programmatic’s ascent. With Indians spending hours daily on platforms like YouTube, Netflix, and Instagram, video ad spending has soared, and programmatic has become the go-to channel for distributing these ads. Mobile gaming, too, has opened new avenues, with in-app ads seamlessly integrated via programmatic platforms. Sectors like banking, financial services, and insurance (BFSI), education, and media have poured investments into this space, recognizing its ability to engage a digitally savvy audience.

The Current Landscape: A Programmatic Powerhouse

Today, India is one of the fastest-growing advertising markets globally, and programmatic is at its heart. Industry analysts predict that digital ad spending will reach $21 billion by 2028, with programmatic’s share climbing to over 70%. This growth mirrors trends in the Asia-Pacific (APAC) region, where programmatic spending is expected to double in the next five years. Yet, India stands out due to its unique market dynamics—rapid urbanization, a young population, and a burgeoning middle class eager to consume digital content.
Connected TV (CTV) and OTT platforms have added a new dimension to this ecosystem. As more households adopt smart TVs and streaming services, programmatic enables brands to deliver addressable ads to specific viewers, revolutionizing television advertising. For example, a family watching a cricket match on Disney+ Hotstar might see tailored ads based on their viewing habits, a feat unachievable with traditional TV spots. This convergence of digital and traditional media underscores programmatic’s versatility.
Artificial intelligence (AI) and machine learning (ML) have also supercharged programmatic’s capabilities. Predictive analytics now refine audience segmentation, while AI optimizes ad creatives in real time, ensuring relevance and engagement. In a market as fragmented as India, where consumer behavior varies widely, these technologies bridge the gap between intent and action, making campaigns more effective.

Challenges on the Horizon

Despite its meteoric rise, programmatic advertising in India faces significant hurdles. One pressing issue is data privacy. As global regulations like the General Data Protection Regulation (GDPR) influence local policies, India’s Personal Data Protection Bill (pending full implementation as of 2025) looms large. The phasing out of third-party cookies by Google, completed in 2024, has forced advertisers to pivot to first-party data and contextual targeting. While this shift aligns with privacy concerns, it challenges the hyper-personalization that programmatic thrives on.
Ad fraud remains another thorn. Click bots, domain spoofing, and low-quality inventory plague the ecosystem, eroding trust. A 2022 survey revealed that only two-thirds of Indian advertisers fully grasp programmatic’s mechanics, leaving room for exploitation. Addressing this requires robust fraud detection tools and industry-wide standards, such as the Interactive Advertising Bureau’s Open Measurement SDK.
Market fragmentation adds complexity. With thousands of publishers, platforms, and agencies, achieving uniformity in measurement and transparency is elusive. Creative quality often takes a backseat, as the focus shifts to automation over storytelling. For programmatic to mature, stakeholders must integrate creative performance into the buying process, ensuring ads resonate beyond mere impressions.

The Future: Opportunities and Innovations

Looking ahead, the future of programmatic advertising in India is brimming with promise. As internet penetration deepens—projected to hit 900 million users by 2025—emerging markets in Tier-II and Tier-III cities will drive growth. These regions, often overlooked by traditional media, offer untapped potential for programmatic campaigns tailored to local languages and preferences.
The integration of emerging technologies will further elevate programmatic’s impact. Generative AI could revolutionize ad creation, producing dynamic, personalized creatives at scale. Imagine an ad that adapts its visuals and messaging based on a user’s mood, inferred from their browsing patterns—all powered by AI. Meanwhile, 5G’s lightning-fast speeds will enhance video and interactive ad experiences, making programmatic the backbone of immersive storytelling.
Audio advertising, buoyed by the podcast boom and music streaming platforms like Spotify, is another frontier. Programmatic audio ads, targeted by listening habits, could rival video in engagement. Similarly, digital out-of-home (DOOH) advertising—think smart billboards in malls or metro stations—will leverage programmatic for real-time updates, blending physical and digital worlds.
Perhaps the most transformative shift lies in omnichannel advertising. As consumers flit between devices and platforms, programmatic will unify these touchpoints, delivering cohesive brand narratives. A shopper browsing Flipkart on their phone might later see a related ad on their smart TV, all orchestrated through a single programmatic strategy. This seamlessness will redefine customer journeys, driving loyalty and conversions.

A New Era Beckons

The rise of programmatic advertising in India is a testament to the country’s digital awakening. From a niche tool to a market juggernaut, it has empowered brands to navigate a complex, diverse landscape with unprecedented agility. Yet, its future hinges on adaptation—balancing innovation with ethics, scale with quality, and automation with human insight.
For Indian marketers, the message is clear: embrace programmatic not as an option, but as a necessity. Those who harness its potential—while addressing its pitfalls—will lead the charge in a digital-first economy. As AI, privacy norms, and consumer behaviors evolve, programmatic will remain the linchpin of advertising excellence, ushering India into a new era of precision, creativity, and connection. The tracks are laid; the journey has just begun. 

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