GroupM's TYNY report: Key takeaways from top executives

On February 11, GroupM launched its annual This Year, Next Year (TYNY) report, outlining ten key trends expected to shape the advertising industry in 2025.

A common theme across all the trends was the increasing influence of Artificial Intelligence. From Connected TV (CTV) to e-commerce and sports, AI has become an integral part of the industry’s transformation.

AI agents and integrated measurement frameworks

Marketing is undergoing a major transformation, and 2025 will be the year of AI agents taking center stage, according to Parathasarathy Mandayam (Maps), Chief strategy Officer- GroupM South Asia.

He introduced the first trend with a playful take on the future of human-led interactions, joking about whether professionals like themselves would still be needed for engagements and discussions in the coming years or if AI agents would take over these roles.

Discussing the reimagining of marketing, Maps highlighted the widespread adoption of large language models in 2024 and pointed to an even bigger shift in 2025—the rise of AI agents. He explained that agentic AI was expected to transform various business functions, with marketing being at the forefront of this evolution.

According to him, this transformation would occur in two waves. The first wave, already underway, focuses on driving efficiency, with AI agents handling workflow management, reporting, and basic content creation. The second wave, expected in the latter half of the year, would see AI agents taking on autonomous decision-making roles, such as autonomous planning, optimisation, and content creation.

He said, “It's a shift from being an enabler to being a decision maker. And that is the big shift which we are seeing when it comes to AI agents.”

Maps also pointed out areas where AI agents were already making an impact, such as customer service. He noted that modern chatbots were evolving to provide nuanced responses based on the context of queries. Another significant advancement was in vernacular AI, where these systems were learning to communicate in various dialects, making interactions more personalised. With the integration of first-party data, AI-driven hyper-personalisation was set to deepen consumer engagement in meaningful ways.

Maps also spoke about the challenges of measurement in an evolving digital landscape. He highlighted three key factors shaping the future of measurement.

He explained that data privacy is a major factor reshaping measurement, as traditional methods like click tracking and cookies are becoming obsolete. He also pointed out that the growing fragmentation of touchpoints has made measurement more complex, with every touchpoint now doubling as a transaction point. To address this complexity, he emphasised the role of AI in measurement, stating that its advancements are transforming the way marketers analyse and track engagement. 

AR, VR, and AI-powered storytelling

Vinit Karnik, Head of Sports, eSports, and Live Entertainment - GroupM South Asia, discussed the impact of the transition from 4G to 5G, emphasising how it was revolutionising content consumption. He pointed out that India now had approximately 750 million smartphone users, creating a massive opportunity for experiential content.

"Take AR try-ons, for instance. The concept has fundamentally changed how we shop. Today, you can visit a website or an app and virtually try on a shirt or spectacles. This advancement, powered by technology and data pipelines, is already driving 65% engagement on platforms," Karnik noted.

He further projected that 150 million people will be using AR and VR devices in the coming years to enhance their shopping experiences.

Beyond e-commerce, Karnik emphasised that AR and VR are making waves in sports and live entertainment. 

"This year, the live entertainment industry in India will transform. With both Indian and international artists leveraging technology, AR-VR will redefine how we experience concerts, events, and shows," he added.

Karnik also underscored how AI has become integral to storytelling, shaping content across text, audio, and video.

"In 2024, we saw influencer marketing come full circle, with brands deeply engaging with communities. With over 1 million content creators in India today, the landscape is evolving. Marketers are no longer creating just 3-5 TV commercials—they’re producing 5,000 to 6,000 pieces of content through influencers and creators," he pointed out.

Looking ahead, Karnik predicted that AI-powered influencers will redefine brand storytelling. He said, “The advantage of AI influencers is that they are always on, brand-safe, and adaptable across multiple dialects and platforms. The sheer flexibility they offer will catapult influencer marketing into a new era of engagement."

According to Karnik, the traditional metrics of influencer marketing—likes, shares, and views—will soon be replaced by 'cost per action'.

"The focus will be on actions—downloads, transactions, and purchases through influencer content—rather than vanity metrics. Marketers will need to shift towards measuring impact through tangible results," he explained.

Karnik also highlighted the growing significance of prompt engineering in content creation:

"In the future, we’ll hear a lot about Chief Prompt Officers—the people guiding AI tools with precise inputs to generate high-quality content at scale. Prompt engineering will play a critical role in curating content efficiently and ensuring brands get the most out of AI-driven storytelling."

The rise of data clean rooms and AI-driven content discovery

Data clean rooms have emerged as a crucial tool for brands looking to balance consumer privacy with actionable insights. Priti Murthy, President, GroupM Nexus explained how the shift towards data clean rooms is driven by the need for deeper audience understanding.

"The origins were from a different era when we wanted a closer look at the audience. Today, everyone is looking from 80,000 feet high, but we need to get down to 200 feet," she said. "Now, it has become a norm for marketers to quickly migrate and adopt data clean rooms—not just for consumer data privacy but also to gain more insights, better understand consumer journeys, and enable seamless marketing collaboration."

The integration of data clean rooms enriches datasets, allowing brands to measure the effectiveness of their decisions against a larger consumer cohort. This, in turn, leads to smarter marketing strategies.

On the evolving nature of content discovery, Murthi highlighted a systemic shift in how content gets listed. Traditional search engine optimisation (SEO), which relied on keyword-based searches, is giving way to AI-driven content discovery.

She believes this transformation will redefine SEO, coining the term "GEO"—or Gen AI-driven Optimisation—where AI platforms will dictate how content is surfaced. 

"User retention will become a bigger priority than ever before. Instead of just clicks, brands will focus on engagement, repeat visits, and deeper analytics, blending search data with online conversations to measure success," she added.

Retail media, omnichannel integration and quick commerce 

Atique Kazi, President – Data, Performance, and Digital Products, GroupM India, shared that India is home to the third-largest online shopper base in the world, and its retail landscape is undergoing a seismic shift.  

Kazi said, "In the next three years, we expect the total online retail GMV (Gross Merchandise Value) to cross ₹167,000 crores, translating to 10-11% of all retail being influenced by digital commerce."

This surge has fueled the rapid rise of retail media, which is now the fastest-growing advertising channel. In 2024, retail media accounted for approximately 22% of India's overall digital advertising spend.

"Media and commerce will be so intertwined that every media opportunity will become a transaction opportunity, and every transaction will eventually be a media opportunity. Media is everywhere, and media is everything," he said.

One of the biggest disruptors in this space is quick commerce, which has fundamentally changed consumer behavior. Although its overall market share is still growing, it dominates client conversations.

"The 10-minute delivery promise and the immediacy of convenience are reshaping how India shops. The most exciting part? We're only at 6-7% smartphone penetration in this space, meaning the growth potential is astronomical," Atiq noted. "A significant chunk of this expansion is coming from Tier-II and Tier-III cities."

The evolution of quick commerce has also been fascinating. Initially, it was search-driven—fulfilling immediate or emergency-based needs. However, today, platform data reveals that at least 50% of transactions stem from a full-funnel approach, driven by pop-ups, interstitials, catalog browsing, post-purchase ad units, and other discovery-led methods.

"This shift towards exploratory shopping behavior is what marketers are keen to tap into, as it allows them to integrate different funnels more seamlessly," he explained.

Looking ahead, he sees health, pharma, and personal care as the next major categories set to drive quick commerce growth.

"If you want to win in this space, you have to be nimble, act fast, and be highly responsive in your operations," Kazi advised.

India's advertising growth

The report anticipates India’s adex to grow by 7% in 2025 taking the overall ad revenue to Rs 1,64,137 crore, with an incremental Rs 10,730 crore compared to 2024.

Addressing the press, Prasanth Kumar, CEO, GroupM South Asia said, "India is at the forefront of a marketing revolution driven by AI and data privacy. As global ad spend surpasses $1 trillion, India emerges as a top 4 growth market, with digital now accounting for over 60% of ad spend. With a shift to personalised engagement, commerce-driven marketing, and responsible innovation, mixed reality and immersive tech fuel experiential content. While TV is vital, we also see AI agents transform customer interactions, we also witness brand-audience connections getting redefined with the surge of emerging formats like programmatic CTV and AI-driven retail media. All of this is positioning India for unprecedented innovation and impact in the modern marketing era." 

The 2025 growth will be led by digital which is pegged to grow by 11.5%. OOH and Cinema advertising are expected to grow by 8% and 10%, respectively. Print adex will grow by 4%.

GroupM predicted that TV ad revenue would decline by 1%. 2025 will also see the digital share rising to 60% of overall adex. 

Ashwin Padmanabhan, Chief Operating Officer, GroupM said, "India’s advertising ecosystem is being reshaped by digital dominance and shifting consumer behaviours, Digital and TV together account for 86% of total ad spend, with streaming TV now making up 12.6% of total TV ad revenue—signalling a critical shift for brands to optimise across high-growth platforms. Key sectors like SME, realty, education, BFSI, and tech/telco contributing to 60% of total advertising are set to grow at around 10%, further accelerating market expansion. Additionally, rising investments from EVs, fintech, and gaming are fuelling the market’s momentum.”

In 2024, the Indian advertising spends grew 8.8% to reach Rs 1,53,407 crore, said GroupM. According to the report, the retail media continues to grow at a CAGR of 40% since 2019. In 2025, the share of retail media will be 13.2%.

Parveen Sheik, Head of Business Intelligence, GroupM said, "With India’s GDP projected to grow by 6.5% in 2025, its advertising market remains strong, ranking 9th globally. Digital adspends is now close to 1 lac crore, driven by AI, commerce, retail, media, and hyper-personalisation marketing. As the economy grows, brands must embrace agility, data intelligence, and sustainable strategies to maximise impact in this dynamic landscape."

The 2025 advertising landscape, as outlined in GroupM’s TYNY report, signals a future heavily influenced by AI. From AI agents to AR and VR storytelling, the transformation is multifaceted and promises to reshape how brands engage with consumers. AI is no longer just an enabler but is expected to play an active role in decision-making, driving marketing functions such as content creation, customer service, and hyper-personalisation. The future of advertising, therefore, promises greater innovation, efficiency, and engagement.