As AI drives 3x more discovery, India’s marketing funnel is being rewritten

The traditional marketing funnel was always more of a framework than a fixed reality. Awareness led to consideration, which led to conversion, and each stage had its own channels, budgets and metrics. That model is now being steadily dismantled. Not through disruption that announces itself loudly, but through a series of structural shifts that are beginning to overlap and reinforce one another.

Across India’s digital ecosystem, content formats, distribution infrastructure and artificial intelligence are converging to create a new operating system for marketing. In this system, discovery is increasingly mediated by algorithms, content performs multiple roles at once, and monetisation is embedded directly into engagement. The funnel is no longer a sequence. It is becoming a layer.

This transition is not theoretical. It is visible in how audiences consume content, how platforms are evolving and where advertisers are beginning to place their bets. The change is gradual, but its implications are fundamental. It suggests that the future of marketing will not be built on scale alone, but on the ability to integrate content, context and commerce into a single, continuous experience.

The quiet collapse of the funnel

The most significant shift underway is the collapse of the linear journey that once defined consumer decision-making. What used to be a staged progression is now compressed into moments of engagement that can simultaneously inform, persuade and convert.

This compression is being driven by the rise of what can be described as a content stack. Short-form video drives discovery. Video podcasts and long-form conversations build trust and depth. Episodic formats such as micro-dramas sustain engagement over time. Each format is not confined to a single stage of the funnel. Instead, it contributes to multiple stages at once.

India’s consumption patterns underline this shift. Technology, Media and Telecommunications Predictions 2026: India chapter report by Deloitte highlights that podcast audiences have doubled from around 100 million in 2024 to more than 200 million in 2025, signalling a move from experimentation to habit formation. At the same time, Connected TV has scaled rapidly, reaching about 129 million users in 2025 with growth of nearly 85 percent year on year. These are not isolated trends. They point to a broader reconfiguration of attention, where audiences move seamlessly between screens and formats without following a predefined path.

The implication for brands is clear. Campaigns can no longer be designed as linear journeys. They need to function as ecosystems where different formats reinforce each other and collectively drive outcomes.

Content as the new full-funnel engine

What makes the current moment distinct is that content itself is taking on the role of the funnel. A short video can introduce a product, a podcast can build credibility around it, and a longer narrative format can deepen the relationship. The transition from discovery to decision is increasingly happening within content environments rather than across them.

This is also reflected in how engagement is valued. High-reach formats continue to play a role, but there is a growing premium on environments that offer depth, attention and contextual relevance. Video podcasts, for instance, are not just expanding audiences but also redefining engagement. Globally, users who watch video podcasts consume significantly more content than those who only listen, and the format is beginning to compete directly with traditional video platforms for screen time.

In India, the report suggests that this shift is amplified by the scale of mobile consumption and the diversity of linguistic audiences. Regional language content is emerging as a key growth driver, particularly in Tier II and Tier III markets where cultural relevance often outweighs production scale. This is creating new opportunities for brands to engage with audiences in more meaningful ways, but it also raises the bar for authenticity and contextual understanding.

The result is a move away from visibility as the primary metric of success. What matters increasingly is the ability to hold attention and build trust within environments that audiences actively choose.

AI and the invisibility of discovery

While content is reshaping engagement, artificial intelligence is redefining discovery. One of the most consequential shifts highlighted in the report is the move towards embedded AI experiences. By 2026, the use of generative AI within existing applications such as search engines is expected to be three times more common than the use of standalone AI tools.

This has profound implications for how consumers find information and how brands are discovered. The traditional model of search, where users navigate through links and results, is being replaced by systems that provide direct answers and recommendations. Discovery is becoming less about choice and more about curation.

For marketers, this introduces a new layer of complexity. Visibility is no longer determined solely by keywords, placements or media spend. It is influenced by how algorithms interpret relevance, context and intent. The shift from search engine optimisation to what can be described as generative engine optimisation is already underway.

In practical terms, this means that brands need to think beyond platforms and consider how they appear within AI-driven environments. It also means that control over discovery is becoming more fragmented, with platforms and models playing a larger role in shaping outcomes.

Where the money is moving

As these structural shifts take hold, advertising budgets are beginning to follow. There is a gradual but noticeable movement towards formats and platforms that offer higher engagement and clearer pathways to monetisation.

Connected TV is emerging as a key beneficiary, offering premium inventory and the ability to deliver long-form content in a living room environment. Video podcasts are attracting interest from brands looking for environments that combine reach with trust. Creator-led ecosystems are gaining traction as they provide access to engaged communities rather than passive audiences.

At the same time, monetisation models in India continue to be shaped by price sensitivity. Subscription uptake remains limited, with most users preferring free or bundled experiences. As a result, advertising and sponsorships remain the primary drivers of revenue, even as hybrid models begin to evolve.

This creates a paradox. India has one of the largest and most engaged digital audiences in the world, but monetisation per user remains relatively low. For brands, this means that efficiency and effectiveness need to be balanced carefully. The focus is shifting from maximising impressions to maximising impact within each interaction.

The emerging role of telcos

Perhaps the most underappreciated shift is the evolving role of telecom operators. Traditionally seen as providers of connectivity, telcos are beginning to position themselves as platforms that integrate services across multiple aspects of daily life.

With a base of around 1.2 billion subscribers and nearly 955 million internet users, the report outlined how telecom networks have unparalleled reach. The next phase of growth is expected to come from layering services such as healthcare access, mobility solutions and local commerce onto this infrastructure. This creates new touchpoints for engagement and, potentially, new opportunities for monetisation.

The strategic question is whether telcos can move beyond being enablers to becoming active participants in the media and advertising ecosystem. If they succeed, they could redefine how and where brands connect with consumers, particularly in markets where traditional media channels are less dominant.

The new mandate for brands

Taken together, these shifts point to a new mandate for brands operating in India’s digital economy. The emphasis is moving from scale to relevance, from presence to participation and from campaigns to systems.

Brands need to think in terms of content ecosystems rather than isolated executions. They need to understand how different formats interact and how they can be used to create a cohesive experience. They need to engage with AI not just as a tool for efficiency but as a factor that shapes visibility and discovery.

Equally important is the need to align with the realities of the market. Affordability, linguistic diversity and behavioural patterns will continue to define how technologies are adopted and adapted in India. The ability to localise at scale will be a critical differentiator.

A market in transition

What makes this moment particularly significant is that it represents a transition rather than a disruption. The changes are incremental, but their cumulative impact is transformative. The lines between media, technology and commerce are becoming increasingly blurred, and the boundaries that once defined the marketing funnel are dissolving.

India is likely to be one of the most important markets where this transition plays out at scale. Its combination of large audiences, low-cost data and diverse consumption patterns creates conditions that are uniquely suited to experimentation and adaptation.

The question is not whether the funnel will disappear, but how quickly brands can adapt to a world where it no longer serves as the primary organising principle. In that world, success will depend less on how many people a brand reaches and more on how effectively it integrates itself into the layers of content, platforms and intelligence that now shape how decisions are made.

The future of marketing in India will not be defined by a single channel or format. It will be defined by the ability to navigate a system where everything is connected, and where value is created not at the end of a journey, but throughout it.