With India’s digital advertising market projected to grow at a staggering 19.09% CAGR, reaching Rs 59,200 crores by 2025, the country’s martech (Marketing Technology) sector is undergoing a rapid transformation, as per the latest report by Dentsu India. AI-driven personalisation, data analytics, and automation are reshaping customer engagement, while businesses shift focus from traditional marketing to highly targeted, tech-driven strategies.
The increasing adoption of AI-powered personalisation, advanced analytics, and automation tools is reshaping customer engagement, particularly in e-commerce and digital retail. The report also highlights the growing influence of startups in MarTech innovation, with many focusing on SaaS-based solutions, data analytics, and blockchain technologies. These startups, supported by rising venture capital investment, are making cost-effective and scalable tools accessible to businesses across industries.
One of the key shifts in the MarTech landscape is the transition from third-party data reliance to first-party data strategies. With third-party cookies being phased out, businesses are focusing on leveraging their own customer data to build stronger relationships and deliver hyper-personalized marketing campaigns. AI-driven tools are playing a central role in this transformation, enabling companies to predict consumer behaviour and optimise digital campaigns in real time.
Regional expansion is another major trend, as voice search and vernacular content gain traction in Tier 2 and Tier 3 cities. These technologies are helping brands extend their reach beyond metro areas, tapping into a broader consumer base. Meanwhile, the rise of Direct-to-Consumer (D2C) models in sectors like beauty, wellness, and personal care is further fueling MarTech adoption, allowing brands to establish direct connections with customers.
“As the dots between media, creative, and customer experience connect more intimately, MarTech has become the spine that unites these disciplines—enabling powerful, data-driven connections that drive meaningful outcomes. India’s MarTech landscape is evolving rapidly, redefining how brands engage with consumers. By viewing MarTech as the backbone of their business strategy, brands can unlock smarter solutions that fuel growth and impact,” Narayan Devanathan, President and Chief Strategy Officer, South Asia, Dentsu, commented.
Despite its rapid growth, the sector faces challenges. Integrating various MarTech tools into existing business systems remains a hurdle, often leading to inefficiencies. Financial constraints also pose difficulties, particularly for small and medium-sized enterprises (SMEs) looking to invest in premium marketing technologies.
“I have always believed that technology is most powerful when it simplifies complexity. MarTech is a great example of that—it helps businesses make sense of vast amounts of data and turn it into meaningful customer experiences. Today, it’s not about whether businesses use MarTech, but how well they integrate it into decision-making and customer engagement. The companies that get this right will build stronger customer relationships and more resilient businesses,” Harsha Razdan, CEO, South Asia, Dentsu, said.
Programmatic advertising, which automates ad placements using AI and real-time bidding, is gaining momentum as companies seek to maximise the impact of their advertising spend. This shift, along with the continued push for hyper-personalisation, is expected to redefine marketing strategies across industries.