India’s new wave of AdTech startups bet on AI to reinvent digital advertising

MUMBAI:  The future of advertising may no longer be written by copywriters, designed by creative teams or managed by media planners. Instead, it could be generated, tested and optimised by artificial intelligence. Across India, a new wave of AdTech startups are relying on AI-native platforms that promise to transform every stage of the advertising process, ushering in a new era where machines increasingly take centre stage in marketing.

An analysis of emerging AdTech companies from the Indian startup ecosystem reveals a growing focus on generative AI, machine learning, computer vision and autonomous campaign management as businesses seek to improve advertising performance while reducing costs and manual effort.

At the forefront of this trend is Bengaluru-based Lumiad, which uses generative AI to create user-generated content style of video advertisements for ecommerce brands. The platform automatically generates scripts, creates videos using AI-powered avatars and analyses campaign performance to improve future advertising creatives. By dramatically reducing production costs and turnaround times, Lumiad is targeting a market traditionally dependent on content creators and advertising agencies.

The rise of so-called ‘AI marketing agents’ is also becoming increasingly evident. Navi Mumbai-based Adsnex has developed what it describes as an AI-native advertising operating system that unifies ad creation, campaign management and optimisation across multiple platforms. Using agentic AI and workflow automation, the company aims to reduce the complexity of managing campaigns across fragmented advertising ecosystems.

Similarily, Gurugram-based Marx AI Technology is applying workflow-based artificial intelligence to performance marketing. Its platform assists brands with competitor analysis, creative ideation and advertising production, enabling marketing teams to scale content generation while maintaining strategic oversight.

AdTech veteran companies are also investing heavily in artificial intelligence and machine learning. DeltaX, one of India’s better-known advertising technology companies, leverages machine learning algorithms, user behaviour modelling and big data analytics to optimise media buying and improve return on investment which include-search, social media, display and video advertising channels.

Meanwhile, Mumbai-based HockeyCurve is using predictive analytics and dynamic personalisation to automate media buying and creative delivery, reflecting a broader industry move towards data-driven campaign optimisation.

Beyond digital channels, several startups are extending AI into offline advertising environments. Hyderabad-based NearBuzz combines computer vision and Internet of Things technologies to provide audience analytics for digital out-of-home advertising. The platform analyses audience demographics and contextual factors in real time, enabling advertisers to deliver more targeted messaging on digital screens.

Bengaluru-headquartered TEBS is pursuing a similar objective within the mobility sector. Its platform uses AI-driven passenger profiling, geolocation data and recommendation systems to deliver targeted advertisements to travellers during journeys, transforming idle travel time into a marketing opportunity.

Search and discovery are also emerging as important battlegrounds in the AI advertising landscape. SearchBar.AI is developing intelligent search experiences for websites and applications, combining recommendation engines and search-based advertising to improve customer conversion rates while creating new opportunities for advertisers.

Elsewhere, companies such as Adgebra-Inuxu Digital Media Technologies, Social Frontier India and Go Khush are leveraging audience targeting, automation and predictive analytics to improve campaign effectiveness across multiple channels.

Not every company in the sector is pursuing advanced AI. Businesses such as CupShup, which focuses on advertising through branded tea and coffee cups, and Home of Marketing, which enables brands to exchange excess inventory for advertising inventory, continue to build innovative media distribution models without making artificial intelligence a central component of their offerings.

Industry Trends

The first is the growing adoption of generative AI for creative production. Startups such as Lumiad and Marx AI are using AI to automate scriptwriting, content generation and creative testing, reducing the time and cost associated with launching campaigns.

A second trend is the rise of agentic AI systems, exemplified by Adsnex. Rather than merely assisting marketers, these platforms are designed to autonomously execute advertising workflows, optimise spending and manage campaigns across multiple networks.

Thirdly, machine learning-driven optimisation is becoming a standard feature across the industry. Companies such as DeltaX and HockeyCurve are increasingly relying on predictive analytics and behavioural modelling to improve advertising performance and maximise return on investment.

Another notable development is the expansion of AI into physical and hybrid advertising environments. NearBuzz and TEBS have demonstrated how computer vision, IoT and real-time analytics are being deployed to connect digital intelligence with offline consumer experiences.

Finally, startups are placing greater emphasis on hyper-personalisation, using recommendation engines, audience analytics and behavioural data to deliver more relevant advertising to consumers.

what’s next for the Indian AdTech?

The emergence of AI-native advertising platforms suggests India’s AdTech industry is entering a new phase of development. While traditional advertising technology focused largely on media buying and ad delivery, the latest generation of startups is increasingly building systems capable of generating creative assets, making optimisation decisions and managing campaigns with minimal human intervention.