The present invention relates to the field of dynamic content creation and management and more particularly to dynamically create and insert immersive promotional content in a multimedia. The multimedia requested by a user is procured from a media server (105) and the one or more objects present in the multimedia is determined. The content of the multimedia is analyzed, and a decision is taken to immerse the promotional content in the multimedia based on the analysis of the multimedia. Further, a promotional content is created in real time using the components present in the asset database (106) based on the personalized user profile. The created promotional content is overlaid and blended with a at least one object from the one or more objects in the multimedia. The created promotional content and the multimedia is joined to form a composite media and is streamed to the user device.