When WPP Media released this year’s next year’s annual report on the state of the advertising industry, attention expanded beyond spending forecasts to include artificial intelligence, marking a shift in focus for the agency network.
At the report’s launch last week at the company’s offices in suburban Mumbai, much of the discussion revolved around AI, a technology that is reshaping businesses around the world. Of the 10 major trends expected to impact advertising in India, three center around AI, including the rise of the agent ecosystem, the evolution of search advertising, and the use of AI to more precisely target audiences.
According to a report by the Mint, Upali Nag Kumar, president of strategy at WPP Media, said at a press conference that professionals no longer just have to learn how to use AI tools, they must also become orchestrators of AI tools.
As AI tools transform multiple industries, network agencies are also adapting, and advertisers are increasingly relying on AI not only for creative generation but also for market research and end-to-end campaign management. Investors have reacted to the changes, with WPP Plc’s share price falling more than 60% in the past 12 months, and rival Publicis Groupe’s share price falling nearly 28% over the same period.
Two other competitors, Omnicom and Interpublic Group, merged late last year to counter increasing competition from technology companies, particularly AI platforms. Meanwhile, consumer AI applications are expanding in India through partnerships. As reported by Mint, OpenAI this week announced search partnerships with streaming platform JioHotstar and online travel aggregator ixigo.
To reflect this change, WPP Media has reclassified its advertising channels for the first time. Digital advertising now includes digital extensions of traditional media, such as streaming platforms of television channels, audio streaming applications, and online versions of print publications. Search, which is increasingly being disrupted by AI chatbots, is being reclassified as intelligence, while traditional physical formats like billboards and movie trailers are classified as location advertising.
The revised framework provides a new perspective on global advertising. More than 57% of global advertising is driven by content, and more than 80% of global advertising categories that include content originate from digital channels, including digital extensions of traditional formats such as television, print, and audio.
Global advertising revenue, excluding U.S. political advertising, will grow 8.8% to nearly $1.2 trillion in 2025, led by more than 10% growth in intelligence and more than 9% growth in commercial advertising, according to a WPP report. It is expected to grow another 7.1% this year.
However, India outperformed the global market, with advertising spend increasing 9.2% to Rs 1.84 trillion, driven by a 24% surge in commercial advertising, including e-commerce applications, financial portals and online travel aggregators. Contrary to global trends, all major advertising channels in India registered growth in 2025, with print and audio increasing by 4.4% and 1.5%, respectively. Globally, print was down more than 5%, while audio was almost flat.
WPP said India is expected to grow by 9.7 per cent in 2026, with advertising spend exceeding Rs 2 trillion, outpacing mature markets such as the US and the UK. Only Brazil is expected to see higher growth this year at 14.4%, according to the report.
Despite strong growth, advertising spending accounts for just 0.5% of India’s GDP, slightly above 2020 levels, compared to 1-1.5% in mature markets in Europe and North America.
Prasanth Kumar, CEO of South Asia at WPP Media, told Mint that AI is now providing agency networks with three key priorities: generating and embedding insights, creating and targeting ads, and enhancing measurement and learning processes.
Citing concerns over the relevancy of traditional network agencies, Kumar said clients continue to demand real-time speed and the ability to course-correct campaigns while in operation. He said broader and deeper insights will improve the ability to effectively deploy budgets to generate returns, and AI activation will be central to that process.
Shekhar Banerjee, president of client solutions at WPP Media, told Mint that organizations with better access to data and the ability to adapt their behavior will have an advantage, noting that those with first-mover advantages and extensive information repositories are more likely to succeed.
The report highlighted that although India’s advertising market is expected to outperform its global peers in 2025 and maintain its momentum, AI remains at the core of industry discussions.
Vishal Jacob, president of Choreograph South Asia, the data and technology arm of WPP Media, said the tasks assigned to AI agents have become significantly more complex in the past few months. He explained that multiple agents are increasingly required to work together to complete a task, which he described as an ecosystem of agents. Jacob added that WPP Media has deployed such an ecosystem, including deep researchers, to conduct market research and address complex customer questions regarding consumer behavior and category dynamics.
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