Redseer in its latest report, “Artificial Intelligence: The Next Growth Catalyst in Advertising”, highlights that AI is beginning to reshape every major layer of the global advertising industry, from media buying and creative production to measurement, commerce, and customer targeting. As advertising crosses the USD 1 trillion mark globally, AI is expediting a shift towards more automated, data-driven, and outcome-oriented advertising models, and India will not just be servicing this transition but also producing global champions.
Redseer estimates that digital formats now account for nearly 75–80% of global advertising spend, with 80–85% of digital advertising already transacting programmatically. But AI is now doing far more than improving efficiency; it is fundamentally rebuilding the global advertising stack across targeting, bidding, creative production, attribution, commerce, and measurement simultaneously.
“What makes this transition different is that AI is not adding another layer to advertising, it is rewriting every layer of it at the same time,” said Mukesh Kumar, Associate Partner, Redseer Strategy Consultants. “The engineering work required to rebuild the advertising stack around AI, from ML-led bidding systems and identity graphs to transformer-based recommendation engines and agentic advertising infrastructure, maps directly to the talent India has developed over the last three decades. India is no longer just servicing global AdTech; it is increasingly building and owning the products powering the next phase of the industry.”
The study highlights that India is emerging as one of the most strategic talent and product hubs for the global AI-driven AdTech ecosystem. India today has ~2.7 million engineering and technology enrollments annually, 20–24 million GitHub developers, and nearly 1,900 GCCs generating $65–75 billion in exports, creating a deep foundation for AI-led product development.
Key Indian-origin AdTech firms increasingly operate as global product companies rather than outsourced technology vendors. The report notes that Indian AdTech companies are beginning to capture software and platform margins instead of traditional services margins; a structural shift with significantly higher long-term value creation potential.
The opportunity is especially significant in areas such as brand safety, fraud detection, and measurement infrastructure, where global advertising inefficiencies continue to create tens of billions of dollars in waste annually. As AI-native platforms, conversational assistants, and agentic commerce create entirely new advertising surfaces, the demand for scalable open AdTech infrastructure is expected to rise sharply.
The report further notes that India’s own digital advertising market, projected to grow from ~$21 billion in 2025 to $33–42 billion by 2030, provides an additional domestic growth engine for AI-led advertising innovation.
Key insights from the study:
Global advertising crossed the USD 1 trillion mark in CY2025
Digital advertising accounts for nearly 75–80% of total advertising spend globally
80–85% of digital advertising transactions are already programmatic
AI is improving advertising performance across targeting, bidding, creative production, attribution, and measurement
AI-native platforms, agentic commerce, and hyper-personalised apps are creating entirely new advertising surfaces
India hosts 1,800–2,000 GCCs employing 2–2.5 million professionals, increasingly focused on AI-led product and platform development
India’s digital advertising market is projected to reach $33–42 billion by 2030
Indian-origin AdTech firms are increasingly building global product businesses rather than operating purely as service providers
India isn’t servicing this transition; it is producing the global champions
The report adds that as AI adoption accelerates, open ecosystems with strong data infrastructure, advertiser relationships, publisher integrations, and AI capabilities are expected to strengthen their competitive position globally and challenge the dominance of walled gardens further.
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