The Great Pay Reset: How India’s ad-agencies are valuing talent in the digital era

India’s advertising market, according to Bain & Company’s report Advertising in the Digital Age, in India and Around the World, was valued at USD 16–18 billion in 2024. It is projected to grow 10–15% annually, reaching USD 17–19 billion by 2029.

Today, digital and artificial intelligence (AI) dominate the landscape. The report highlights that digital advertising accounted for 50–60% of total ad spend in 2024—and this share is expected to rise further.

Crisil Intelligence corroborates this trend, reporting that digital media captured 46% of India’s total ad spend in FY 2024–25, up from 24% in 2020. Meanwhile, traditional media has stagnated, dropping to 46–47% last fiscal from a 65% market share in 2020.

Dentsu India projects a similar trajectory, with digital advertising expected to make up 61% of total ad spends by 2026.

Shifting pay structures in a digital world

The rise of digital brought new roles and hierarchies: social media strategists, SEO/SEM experts, e-commerce leads, and data analysts. “Those who mastered the digital medium early enjoyed a first-mover advantage,” says Ishan Uchil, managing partner at The Job Shop. Agencies offered premium pay to attract these specialists.

(Data by Xpheno)

Yet, Anil Ethanur, co-founder of staffing firm Xpheno, cautions that digital growth hasn’t fully offset declines in traditional advertising. “The current environment is cautious, with lower hiring volumes and slower pay growth,” he notes.

Indian Advertising: The early days

The digital boom of the mid-2000s redefined advertising in India, much like television did in the 1980s. Early agencies like B. Dattaram & Co. (1905), JWT India (1929), and Tata Publicity Corporation (1920s) laid the foundation for the profession.

Read More: 'Moderate salary hikes expected in India's marketing, media, and PR sectors', experts say

“Starting roles used to be space agents, copywriters, illustrators, and gophers (junior employee),” recalls Geetanjali Bhattacharji, Founder & CEO of Glassbox Ventures. “Entry pay of ₹3–5 lakh was enough for rent, vada pav, and big dreams.”

Ishan Uchil adds that his father’s stories of agencies like Sistas, Enterprise, Trikaya, and Rediffusion paint the 1970s and ’80s as the “golden years.” Profit margins were higher—about 15% commission on client media spends—compared to barely 2% today.

This profitability attracted top talent, including IIM graduates and MBAs, a rarity now given today’s pay scales. Distinguished alumni include Arvind Sharma, former CEO of Leo Burnett (IIM Ahmedabad), Shashi Sinha, ex-CEO of IPG Mediabrands India (IIM Bangalore), and Sam Balsara, founder of Madison World (JBIMS).

By contrast, the 1980s and ’90s had flatter salary structures—junior, mid, and senior levels—with limited bonuses. “Star creatives earned ransoms, but most raises came from longevity or big campaign wins,” Bhattacharji recalls.

In 1987, as per Bang In the Middle's chief creative officer, Prathap Suthan, copywriters started at around Rs 3,000 per month. Today, salaries range from Rs 25,000 to Rs 40,000 per month, depending on city and skill. Bangalore, Delhi NCR, and Mumbai offer the highest pay, while Chennai, Pune, Hyderabad, Kolkata, and Ahmedabad fall on the lower end.

The new breed: Digital-native agencies

The pandemic accelerated change. ^atom network, founded in 2020 by Yash Kulshresth, introduced a nimble agency model: “No bloated hierarchy—just hands-on talent solving problems directly with brands,” he says.

Data by The Job Shop

Despite starting during COVID-19, ^atom network offered 10–20% higher salaries than legacy agencies. “Impact over experience” became the mantra; those delivering measurable client results were rewarded faster.

By 2023, the agency had added social media heads, content leads, and AI specialists, with starting salaries roughly 25% higher than traditional creative roles. “If a role brought scale, innovation, or efficiency, it commanded a higher pay bracket,” Kulshresth says.

Data by The Job Shop

Bhattacharji observes that compensation increasingly depends on market demand, skill rarity, and client impact. “City, specialization, client size, and the ability to say ‘done, boss’ at 2 a.m. decide pay,” she jokes. “Digital and drama bring better hikes.”

Xpheno’s Ethanur notes that the last major pay spike occurred during the post-pandemic hiring surge (2021–2022). Since then, compensation levels have moderated by 40–70%. “The market has corrected itself after an inflated phase,” he explains.

Data by The Job Shop

India’s ad-agency workforce stands at just over 6.5 lakh, largely unchanged over the past year. Attrition rates hover between 10–12%, with most hiring being replacement-driven. “The sector has retained its workforce size through backfills,” Ethanur notes.

AI: The next disruptor

Artificial intelligence is the next variable. While AI skills are not yet a major pay driver, they are reshaping roles. “At present, AI skills are a feather in the cap, not yet a reason for a raise,” says Uchil.

Kulshresth sees faster change. “Anyone who uses AI to produce better work, faster, will lead the curve,” he says. Roles in AI-assisted creativity, UX, and performance marketing are poised to command higher pay, while manual or single-channel roles risk stagnation.

Ethanur adds that agencies are under pressure to integrate AI into HR and talent practices. “As AI climbs the value chain, we’ll see fewer human operators and narrower salary negotiation bands,” he predicts.

Adapt or Get Outdated

Bhattacharji foresees continued pay rises for AI prompt engineers, data analysts, and cross-channel strategists—but flat or falling wages for traditional creatives. “Pure account execs and classic copywriters could be left with peanuts,” she quips. “Advice: upskill, meme harder, or join OTT!”

Despite uncertainties, optimism persists. “Advertising has always evolved—from radio to print, TV, to digital. AI will be no different,” says Uchil. “Some roles will vanish, others will be born. The industry will adapt and survive.”