Odigma Consultancy Solutions Ltd Management Discussions

Industry Overview

A rapidly expanding industry at the intersection of technology, data, and consumer behaviour

The global digital marketing and advertising industry has entered one of its most consequential phases of growth, driven not just by rising internet penetration and mobile adoption but by a fundamental reimagining of how brands reach, engage, and retain audiences in an AI-first world.

Global Market Dynamics

The global digital marketing market was valued at USD 456.7 billion in 2025 and is projected to reach USD 1.2 trillion by 2034, growing at a CAGR of approximately 11% through the forecast period. Parallel estimates for the broader digital advertising segment are even higher. The global digital advertising market was valued at USD 567.9 billion in 2025 and is projected to grow to USD 1.69 trillion by 2033 at a CAGR of 14.3%.

2026 Global Ad Spend

Global ad spend is set to surpass USD 1 trillion for the first time in 2026, with digital representing 68.7% of total investment. Retail media is the fastest-growing channel, while mobile advertising continues to gain share.

Mobile Advertising in 2026

Mobile advertising is projected to reach USD 400 billion globally in 2026, representing 54% of total digital advertising spend.

Email Marketing ROI : 36returnedforevery 1 Invested

Video remains a dominant force. Over 91% of businesses are using video for their marketing campaigns in 2026. Email marketing continues to generate the strongest measured returns - delivering USD 36 for every USD 1 invested, while organic search remains the top ROI-driving channel for 49% of marketing professionals.

The Indian Digital Marketing Landscape

Indias digital marketing ecosystem stands out as one of the most dynamic in the world. The Indian digital marketing market was valued at USD 6.71 billion in 2025 and is expected to grow at a CAGR of 30.2% through 2035, reaching USD 93.94 billion. India ranks as the second-largest online market globally, supported by approximately 900 million internet users.

The structural tailwinds are considerable. Digital advertising is expected to account for approximately 46% of total advertising spend in India, growing at a projected CAGR of 12-14%. Between 45-55% of corporate firms in India now prefer digital as their primary advertising medium. Meanwhile, Indias digital payments infrastructure continues to expand at pace.

UPI transaction volumes rose from 185.85 billion in FY25 to 241.62 billion in FY26, reflecting deep and accelerating digital adoption in everyday consumer behaviour.

Technology and Innovation: The AI Shift

Artificial intelligence is no longer a supporting element of digital marketing; it is reshaping its foundations. In 2026, AEO (Answer Engine Optimisation) and GEO (Generative Engine Optimisation) have moved from emerging ideas to essential operational disciplines, as AI-driven discovery becomes the new front door to brand information. Research shows that nearly 60% of consumers now use AI tools when researching or evaluating purchases.

The pace of change in search behaviour illustrates the urgency. Analysis of 21.9 million Google searches found that 25.11% triggered an AI Overview, nearly double the rate observed in March 2025. Googles AI Overviews now appear in approximately 25% of all searches, and ChatGPT drives more than 87% of AI referral traffic to websites. The implication is direct: brands that are not optimised for AI-generated answers risk losing discoverability in a search environment that increasingly synthesises rather than lists.

Investment intent reflects this urgency. 97% of digital marketing leaders reported a positive impact from AEO in 2025, and 94% plan to increase their AEO investments in 2026. More than a third of brand and agency professionals have already reported decreases in upper-funnel search traffic as a result of AI-generated search results.

The Regulatory Landscape

Data governance is emerging as a critical operational consideration for digital marketers in India. The Digital Personal Data Protection (DPDP) Rules were notified in November 2025, placing 2026 squarely in the execution phase for Indian businesses. The DPDP Act is expected to accelerate the shift towards first-party data, consent-led marketing, and privacy-safe measurement, pushing brands to invest in durable data foundations and predictive models. Agencies that can guide clients through compliant, first- party data strategies will hold a meaningful advantage as this framework matures.

Sector-Specific Growth Drivers

Real estate, financial services, healthcare, and e-commerce continue to be the most active verticals in digital marketing investment. Performance marketing, local SEO, and regional language content are driving growth in Tier II and Tier III markets. B2B marketing is increasingly shaped by account- based strategies, intent data, and video-led thought leadership. Across verticals, the shift from awareness- based to outcome-based marketing, where clients demand measurable ROI and transparent attribution, continues to define how agencies are evaluated and retained.

ODigMas Position Within This Landscape

ODigMa Consultancy Solutions Limited is well-placed to benefit from the industrys direction. With 16+years of experience, a multicity presence, and a service portfolio that spans both established and emerging disciplines, including SEO, AEO, and GEO, we are equipped to serve clients navigating a rapidly changing discovery environment. Our cross-vertical expertise, spanning real estate, senior living, retail, hospitality, and technology, aligns with the sectors driving Indias digital marketing growth. Our commitment to data-driven, outcome-oriented campaigns positions us to meet the expectations of an increasingly performance-focused client base.

As the industry evolves, ODigMa remains focused on staying ahead of the curve, investing in capability, deepening client partnerships, and delivering results that are meaningful, measurable, and lasting.

Future Outlook and Growth Prospects

The trajectory of digital marketing - both globally and in India - points firmly upward, and the next phase of growth will be defined less by volume than by intelligence, precision, and adaptability.

Indias advertising expenditure is projected to reach T1,476 billion (approximately USD 15.9 billion) by 2026, driven by linguistic diversity, explosive growth in Tier II and Tier III cities, and continued smartphone adoption. Digital advertising, already the primary growth engine, surged 21.1% in 2024 to T49,251 crore and is forecast to reach T69,856 crore by 2026 - representing 61% of total advertising spend.

The shift toward Al-first discovery will be among the most consequential transitions the industry faces. Search is moving from keywords to GEO and LLM-led answers, Al agents are beginning to run entire marketing workflows, and the DPDP Act is forcing brands to rethink targeting and measurement from the ground up. Agencies that can navigate this new environment, helping clients remain visible in AI-generated answers while building compliant, first-party data strategies, will carry a significant structural advantage.

Vernacular and regional content represents one of the most substantial untapped opportunities in the Indian market. Over 73% of internet subscribers in India now consume content in regional languages, with an estimated regional language user base of 540 million, representing a T4.5 lakh crore market opportunity. Brands seeking meaningful engagement beyond metros will increasingly depend on agencies with the capability to develop localised, culturally relevant content at scale.

Influencer and creator marketing continues to mature as a performance channel. Indias creator ecosystem is expanding rapidly, with influencer marketing projected to grow at approximately 25% annually through 2025-26. The influencer marketing industry is set to reach approximately USD 400 million in India in 2026. Increasingly, creators are being deployed not just for reach but for regional language scalability and authentic community engagement, functions that integrate directly with broader content and SEO strategies.

Quick Commerce

Quick commerce is emerging as a standalone discovery and performance channel. What began as a logistics play with groceries and essentials is expanding rapidly, with brands setting up dedicated quick commerce teams to manage pricing, inventory, and media across platforms like Blinkit, Zepto, and Swiggy Instamart. For FMCG, D2C, and retail clients, this channel is closing the gap between brand exposure and purchase in ways that traditional performance marketing cannot replicate. Quick commerce is emerging as a standalone discovery and performance channel. What began as a logistics play with groceries and essentials is expanding rapidly, with brands setting up dedicated quick commerce teams to manage pricing, inventory, and media across platforms like Blinkit, Zepto, and Swiggy Instamart. For FMCG, D2C, and retail clients, this channel is closing the gap between brand exposure and purchase in ways that traditional performance marketing cannot replicate.

Purpose-driven and sustainability-led marketing is gaining measurable traction, particularly among younger consumers. Indias under-35 consumers are increasingly measuring a brands worth not just by the quality of its communications, but by the transparency of its practices, with ESG data, factory transparency, and visible sustainability initiatives becoming key differentiators. Agencies that can help clients build and communicate authentic brand purpose will find growing demand across categories.

Looking ahead, the agencies best positioned to grow are those that combine technological fluency with strategic depth that can manage AI-powered campaigns and first-party data infrastructure while still producing content and creative work that earns trust. As Indias digital marketing market continues on its steep growth trajectory, the opportunities for specialist agencies with strong vertical knowledge and multi-channel capability are considerable. ODigMas breadth of expertise, cross-industry experience, and commitment to measurable outcomes place us well to grow alongside, and ahead of, this expanding market.

Risk Factors - Mitigation & Opportunities

Risk Factors

Like all businesses operating at the intersection of technology and services, ODigMa is subject to industry- level and operational risks that warrant clear acknowledgement.

Rapid Technological Disruption

The pace at which AI is reshaping search, content, and campaign management means that service methodologies can become outdated quickly. The emergence of AI-generated search results and answer engines has introduced new discoverability risks for clients, placing pressure on agencies to master disciplines like AEO and GEO alongside traditional SEO.

Rising Media Costs and Talent Pressure

CPMs on Meta and Google have risen significantly across most categories, squeezing margins for brands relying on paid-only strategies. Simultaneously, retaining skilled professionals in data analytics, AI-driven content, and performance marketing remains an ongoing operational challenge in a competitive hiring environment.

Client Concentration Risk

Dependence on a limited number of high-value clients or specific verticals can expose agencies to revenue volatility when sectors experience cyclical downturns or when key clients shift their marketing budgets.

Mitigation

Capability-Led Resilience

Our ongoing investment in AEO, GEO, and AI-assisted workflows ensures our service offering evolves in step with the technological landscape, reducing the risk of capability gaps at critical moments.

Diversified Portfolio and Integrated Strategy

Our presence across real estate, healthcare, F&B, e-commerce, manufacturing, education, and finance provides natural insulation against sector-specific slowdowns. Our multi-channel approach, combining SEO, paid media, content, and emerging discovery channels, further reduces over-reliance on any single platform or client relationship.

Opportunities

AI-First Discovery

As generative search platforms become primary entry points for brand discovery, demand for AEO and GEO expertise will grow sharply. ODigMas early investment in these disciplines positions us to meet this demand ahead of the market.

Vernacular and Regional Expansion

With over 73% of Indias internet users consuming content in regional languages, Tier II and Tier III markets represent a substantial growth opportunity for agencies capable of delivering localised content at scale.

Outcome-Based Partnerships and Emerging Channels

The shift toward performance-linked pricing, combined with the rapid expansion of quick commerce and D2C ecosystems, creates new opportunities for agencies with proven ROI-driven capabilities. As younger consumers increasingly reward brand transparency, purpose-driven marketing strategies represent a further area of growing demand.