New Delhi, Aug. 26 -- India's digital advertising economy is poised for sharp expansion over the next five years even as structural challenges threaten to temper the pace, said Bain & Company's latest report 'Advertising in the Digital Age, in India and Around the World'.

The consultancy estimates that India's digital ad market, valued at $16-18 billion in 2024, will grow at a compound annual rate of about 15% until 2029, reaching $17-19 billion. Overall ad spends are projected to rise from 0.4% of GDP today to about 0.5% by 2029, among the fastest growth rates globally, though still lagging China and Japan on the ad-to-GDP ratio, it said.

"India's digital advertising market is at an inflection point," said Prabhav Kashyap, partner at B...