New Delhi: India remains one of the largest growing markets for digital ads, just behind China and Japan, based on the ad-to-GDP ratio, as per a report by global consultancy firm Bain and Co. The report said the global advertising market is worth almost $1 trillion globally, with India’s total advertising economy standing at around $16-18 billion in 2024.
From traditional to unconventional digital ads
Moving away from the traditional ads run on Meta and Google, advertisers are increasingly reallocating their budgets towards other platforms like news apps, OTT platforms, quick commerce platforms and gaming apps, as per changing customer preferences.
Advertising revenue has become a major source of income for such platforms- with quick commerce majors like Zepto, Blinkit and Instamart together posting ad revenues upwards of Rs.3,000 crore.
The Ad Fatigue dilemma
One challenge most marketers face- and have limited avenues to address is ad fatigue. After a point, every ad feels annoying, and constant badgering from different mediums can have the opposite effect. “To combat ad fatigue, contextualisation and personalisation will be critical to differentiation,” Devika Mittal, Associate Partner at Bain & Company, explains.
Additionally, brands and ad tech companies have been facing increasing challenges to develop their lead lists, especially after the Digital Personal Data Protection Act was rolled out. Companies and Ad-Tech platforms have had to create their own ecosystems to meet expectations.
Despite this, branding managers are facing increasing challenges in maintaining the brand’s recall value, despite AI-powered ad suites offering highly filtered ad campaigns.
According to a report by advertising platform The Trade Desk, almost 70% of Indians are tired of seeing the same ads again and again. Intense competition is making brand recall a far bigger challenge, with marketers being forced to adopt synchronised ad campaigns across channels for the best results.
Limited budgets, and limited room to advertise based on the platform’s terms and conditions offer fresh challenges for marketers looking to generate leads. Irrespective of experience, this ‘ad fatigue’ is like trying to get a class of bored teenagers to get serious with their algebra just before they leave for the day.
How marketers deal with it
“Ad fatigue hits faster than most brands expect, and it’s very challenging at times when you are on a low budget for creating assets,” Soumyadip Chakraborty, Co-Founder of Mumbai-based performance marketing firm Upptick, explains.
“An ad that works on Day 1 feels invisible by Day 10. CTRs dip, costs rise, and audiences scroll past without noticing. In India’s crowded digital space, it’s not just about beating competitors — it’s about beating boredom and the Attention Span,” he says.
To keep things interesting, marketers have had to take a holistic approach, integrating the best of all media to create brand interactions that can actually make a difference. Even then, getting results can be elusive, even if you have all the resources you need.
“If you are advertising with a very high budget, it will reach more audiences. Once the platforms reach active and potential audience, it will start showing the ads again, so the same person will watch the same ad again, which will not help the brand get awareness or sales,” Soumyadip explains the dilemma marketers have been facing ever since.
Even as ad spending will continue to grow, brands have been forced to align their budgets to marketing mediums offering a better impact, particularly influencer marketing. For new age brands, getting noticed means combining the best of digital ads with the right mix of influencers. Even though advertisements continue to remain a revenue source for Meta and Google, their importance has been declining as ‘ad fatigue’ gradually affects the Returns on Investments for most ad campaigns.
