The Evolution of Physical and Contextual Advertising in India: 2025 and Beyond

India’s advertising landscape is undergoing a revolutionary transformation as brands increasingly adopt “phygital” strategies-combining physical presence with digital innovations to create seamless customer experiences. This report explores how Indian marketers are navigating this convergence with detailed case studies showcasing innovative campaigns and technologies shaping the future of advertising.

The Rise of Phygital Marketing in India

The Indian retail sector is witnessing unprecedented growth, projected to reach INR 190 trillion by 2034, outpacing overall consumption7. This expansion is driven by a complex interplay of demographic shifts-rising affluence alongside a vast middle class, increasing female workforce participation, and evolving consumer preferences that balance global aspirations with local pride7.

Phygital marketing-the blending of physical and digital customer experiences-has emerged as a powerful strategy for brands to navigate this evolving landscape. As defined by industry experts, phygital marketing creates immersive, interactive real-time experiences that offer immediate engagement and transactions, activating consumers’ senses beyond what pure digital marketing can achieve17.

India’s Direct-to-Consumer (D2C) market exemplifies this trend, estimated to reach a staggering $100 billion by 202511. While many D2C brands began as online-only entities, they increasingly recognise the importance of omni-channel presence to achieve substantial growth.

“Seven years ago, there were several brands with internet only or internet first, but to become large they need to go omnichannel,” noted Mandar Dandekar, Partner at Sorin Investments, during the Phygital Retail Convention 202411.

Digital Out-of-Home (DOOH) Advertising: Transforming Public Spaces

Digital Out-of-Home advertising has emerged as a cornerstone of phygital marketing strategies in India, exemplified by several high-profile campaigns.

Case Study: Times of India’s DOOH Campaign

The Times of India launched an innovative campaign titled “The Times of a Better India” exclusively on digital OOH in partnership with Times OOH3. The campaign utilised 981 digital media units across six major cities-Mumbai, Delhi and NCR, Chennai, Hyderabad, Pune, and Bangalore-for 15 days3.

What made this campaign noteworthy was its strategic execution:

Carefully selected captive audience locations including airports, malls, metros, and corporate complexes
Digital-only media format to enable flexible storytelling through multiple creatives
Launch timing aligned with Independence Day when patriotic sentiment peaks
Use of intriguing visuals to prompt viewers to reflect on India’s progress3

As Anchal Dhawan, Business Head at Times OOH, explained: “It is high time that brands should understand the power of digital displays and the value added by DOOH in the campaign in terms of playing multiple creative, enhancing the effectiveness of the communication, and engaging the audience with a better storytelling possibility.”3

Case Study: Blinkit’s Bollywood-Themed OOH Campaign

Quick commerce platform Blinkit executed a nationwide OOH campaign in partnership with Kinetic India that cleverly leveraged popular Bollywood references to enhance brand recall10 16.

The campaign featured creatives that blended lyrics from iconic Bollywood songs with product offerings available on the app. For example, “Anda ye bindaas hai” parodied the KK and Anu Malik song “Banda yeh bindaas hai” from 2001, while “Basanti Naaaaach-os” referenced the 1975 movie Sholay to promote Cornitos snacks10.

Arijit Chakrabarti, Vice President-Strategy and Creative at Kinetic India, detailed the execution: “The campaign was executed on 150+ OOH units across 4 major metros. The planning was done based on their operational markets and proximity to delivery depots to drive a call to action. The entire campaign was executed within 72 hours.”10

What distinguished this campaign was the meticulous site selection and creative customization: “Not only was each site in the campaign handpicked based on planning metrics, but the creatives executed on them were analysed using our proprietary visual attention software.”10

Quick Commerce Retail Media: The 10-Minute Revolution

The quick commerce sector has emerged as a significant driver of phygital innovation in India, with companies like Bigbasket and Zepto pioneering new approaches to retail media.

Case Study: Bigbasket’s Multi-Faceted Diwali Campaigns

Bigbasket, a Tata Enterprise, executed several innovative campaigns for Diwali 2024, showcasing the company’s evolution from an online grocery platform to a full-stack quick commerce player.

The Lit Biker Campaign

Launched on October 28, 2024, Bigbasket’s “Lit Biker” campaign in Hyderabad and Bangalore featured delivery partners with light-based signage on helmets displaying “#10Minutes” and “#DiwaliLit”24 27. This initiative highlighted the company’s ability to deliver non-grocery essentials in just 10 minutes during the festive season.

“At bigbasket, we understand the joy and hustle of Diwali festivities, and our ‘Lit Biker’ initiative embodies our dedication to making celebrations brighter, faster, and more memorable for our customers,” said Anand Bhaskaran, Head of Digital and Marketing Communications24 27.

The campaign extended beyond delivery partners to include autorickshaws transformed into moving billboards with Bigbasket banners, creating what customers described as “Branding in Motion”24 27.

The Influencer-Led Campaign

Simultaneously, Bigbasket launched an influencer marketing campaign inspired by the concept “Poo bani Parvati,” where social media personalities transformed into different festive personas to showcase the versatility of the platform’s offerings5 18 22.

The campaign featured region-specific influencers:

North: Kusha Kapila, Gaurav Kapoor, and Agasthya Shah
East: RJ Princy Parik and Aatman Desai
South: Danish Sait, Ayyo Shraddha, and Anu5 18 22

What made this campaign noteworthy was the expansion of Bigbasket’s quick commerce offerings beyond groceries to include Tanishq gold and silver coins, Croma electronics, toys from Mattel, Hasbro, Lego, and Beyblade, as well as apparel from Tata Cliq-all deliverable in 10 minutes5 18.

Case Study: Zepto’s Hyperlocal Success with LytAds

Zepto, another quick commerce player known for lightning-fast grocery delivery, partnered with LytAds to enhance brand visibility through innovative OOH advertising9 25.

The multi-channel campaign employed several strategic elements:

Geo-targeted and time-targeted ads placed in strategic locations within Zepto’s delivery zones
Ads displayed during peak delivery hours to maximize relevance
Minimalistic creative designs highlighting Zepto’s value proposition
A roadshow featuring six branded cars cruising through key neighborhoods
Distribution of free umbrellas to passengers during the roadshow9 25

The campaign achieved impressive results:

190,000+ total ad plays
500+ display hours
Effective brand positioning in the minds of Mumbai consumers9 25

What distinguished this campaign was its hyperlocal focus and integration with Zepto’s broader marketing strategy, creating a cohesive brand experience across channels.

Connected TV (CTV) and Advanced Digital Advertising

Connected TV (CTV) has emerged as a significant growth area in India’s digital advertising ecosystem, with advertising on e-retail platforms reaching Rs 11,293 crore by the end of 2024, accounting for 22.93% of total digital media spends4.

Case Study: Jeep’s Pioneering CTV Campaign with Frodoh

Jeep partnered with adtech firm Frodoh for a groundbreaking Connected TV campaign featuring Bollywood actor Hrithik Roshan15 28. The campaign, conceptualised by Starcom India (part of Publicis Groupe India), integrated a smart QR code within an innovative “inverse L-skinner” format that maximised screen visibility15 28.

The campaign targeted over a million households across India’s top 10 metros, with a focus on Hindi-speaking markets, and achieved remarkable results:

97% video completion rate
11,700 QR scans15 28

Russhabh R Thakkar, Founder and CEO of Frodoh, emphasised the technological innovation driving the campaign’s success: “We are thrilled to have partnered with Jeep and Starcom for a campaign that has witnessed significant success. The metrics speak volumes about the potential of integrating smart technology mediums such as CTV that enable us to deliver highly targeted campaigns, creating further value for the brand.“1528

Kumar Priyesh, Brand Director at Jeep India, highlighted how the campaign aligned with the brand’s innovative approach: “This pioneering CTV campaign for Jeep Wrangler pioneering the use of CTV and QR technology, reported outstanding results and hence demonstrate the power of new ad technologies in reaching and engaging our target audience.”15 28

The Future of Phygital Advertising in India

As India’s screen industries generated an impressive $61.2 billion in economic contribution during 20248, the convergence of physical and digital advertising continues to accelerate. Analysts anticipate a compound annual growth rate of 6-7% over the next four years for the screen sector, with total revenues possibly reaching about $17.5 billion by 20298.

According to a report by dentsu-e4m, advertising on e-retail platforms grew by 23.43% from 2023 to 2024, highlighting the rapid ascent of retail media in India’s advertising ecosystem4. This growth is being driven by several factors:

Technological advancements: Connected TV, DOOH, and mobile integration are enabling more sophisticated targeting and measurement.
Changing consumer behaviors: Post-pandemic shifts in shopping and media consumption patterns have accelerated the adoption of phygital experiences.
First-party data utilization: As Russhabh R Thakkar of Frodoh notes, “For brands, this means leveraging first-party data to deliver more relevant, timely promotions, with solutions that span across both online and offline channels.”4
Retail media networks: Quick commerce platforms are emerging as powerful advertising channels, with endemic brands seeing tremendous value from targeted, on-site advertising4.

Conclusion

The Indian advertising landscape is undergoing a transformative shift toward phygital strategies that seamlessly blend physical and digital experiences. From Times of India’s expansive DOOH campaign to Bigbasket’s innovative “Lit Biker” initiative and Jeep’s pioneering CTV approach, brands across sectors are finding creative ways to engage consumers at multiple touchpoints.

As we look toward 2025 and beyond, the continued evolution of phygital advertising will be shaped by advances in technology, changes in consumer behavior, and the strategic imperative to create unified commerce experiences. Brands that successfully navigate this convergence-leveraging first-party data, embracing creative innovations, and measuring cross-channel impact-will be best positioned to capture attention and drive growth in India’s increasingly complex media ecosystem.

The case studies highlighted in this report demonstrate that effective phygital strategies require not just technological sophistication but also creative ingenuity and strategic alignment with broader marketing objectives. As the boundaries between physical and digital continue to blur, the most successful brands will be those that create seamless, meaningful connections with consumers across all touchpoints.