The Future of Performance Marketing in India: Key Trends Ahead

Authored by Prady, CEO and Co-Founder, NP Digital India

India’s digital landscape is evolving at breakneck speed. With over 900 million internet users and counting, the country is poised to become one of the world’s largest digital economies. For marketers, this presents both opportunities and challenges—especially in performance marketing, where results are measured by clicks, conversions, and ROI. As brands strive to stay ahead, let’s explore the trends reshaping performance marketing in India and what the future holds.

1. Hyper-Personalization Powered by AI- Gone are the days of one-size-fits-all campaigns. Today’s consumers demand relevance. Thanks to advancements in artificial intelligence (AI) and machine learning, marketers can now analyze vast datasets to deliver hyper-personalized ads. For instance, a fitness app might target users in Mumbai with monsoon workout tips, while a regional e-commerce platform in Tamil Nadu could promote monsoon-ready footwear. Tools like dynamic creative optimization (DCO) are enabling real-time customization of ads based on user behavior, location, and preferences.

2. The Rise of Vernacular and Voice Search- India’s internet boom isn’t limited to English speakers. Over 70% of users prefer consuming content in regional languages. Performance marketers are tapping into this by creating campaigns in Hindi, Tamil, Telugu, and other regional dialects. Simultaneously, voice search is gaining traction as affordable smart speakers and voice assistants like Alexa penetrate households. Optimizing for long-tail, conversational keywords (e.g., “Best budget smartphones under ₹15,000”) will be critical to capturing voice-driven queries.

3. Video Content Dominates- From YouTube to Instagram Reels, video is king. Short-form video platforms have exploded in popularity, and performance marketers are leveraging this trend with shoppable videos and interactive ads. For example, Nykaa’s 15-second makeup tutorials with instant “Shop Now” buttons have driven impressive conversion rates. Live commerce—a blend of live streaming and instant purchasing—is also gaining momentum, particularly in Tier 2 and 3 cities.

4. Influencer Marketing Gets Micro and Nano: While celebrities still hold sway, micro (10k–100k followers) and nano influencers (<10k followers) are becoming the secret sauce for performance campaigns. These creators boast highly engaged, niche audiences. A skincare startup might collaborate with a micro-influencer in Pune to promote acne solutions, yielding higher trust and ROI than a generic celebrity endorsement. Platforms like Instagram and Koo are even testing affiliate-linked stickers, turning influencer posts into direct sales funnels.

5. Privacy-First Strategies: With data privacy laws tightening and third-party cookies disappearing, marketers are pivoting to first-party data collection. Brands are incentivizing users to share information via quizzes, loyalty programs, or personalized discounts. Contextual targeting—placing ads based on webpage content rather than user tracking—is making a comeback. For example, a cooking oil ad might appear on a recipe blog instead of relying on invasive user profiling.

6. Integration of E-commerce and Performance Marketing: Social commerce is blurring the lines between discovery and purchase. Platforms like Meesho and Flipkart Shopsy allow users to buy products directly through WhatsApp catalogs or Instagram shops. Performance marketers are optimizing campaigns for “click-to-cart” and “checkout” actions, reducing friction in the buyer journey. Even traditional sectors like real estate are adopting AR-driven ads, letting users “virtually tour” homes via their smartphones.

7. Expansion of Performance-Based CTV and OTT Advertising: The rise of Connected TV (CTV) and Over-the-Top (OTT) platforms in India is creating new performance marketing opportunities. As more consumers shift from traditional television to streaming services, brands will invest in performance-driven video advertising on platforms like Hotstar, JioCinema, and SonyLIV. The ability to track engagement, retarget viewers, and measure conversions will make CTV advertising a game-changer in performance marketing.

8. Agile Measurement and Multi-Touch Attribution: Last-click attribution is no longer sufficient. Marketers are adopting multi-touch models to understand the full customer journey. Advanced analytics tools now track cross-device behavior, attributing conversions to multiple touchpoints—from a Google search to a retargeting ad on Facebook. This shift ensures budgets are allocated to high-impact channels.

The future of performance marketing in India hinges on adaptability. As technology advances and consumer behaviors shift, marketers must stay agile—experimenting with emerging platforms, prioritizing data ethics, and fostering collaboration between creatives, data scientists, and CX experts.

One thing is certain: performance marketing will continue to thrive, but only for those willing to innovate. The question isn’t if brands will adapt, but how quickly.