Spark aims to create partnerships and products tailored to brands’ needs and provide more creative ways to drive scale and engage target audiences.
TMG will use its understanding of customers’ behaviour to help optimise the content produced for brands’ target audiences.
The publisher's insights will draw from the latest Adobe Analytics and Adobe Marketing Cloud technologies as well as first party data from more than 2.5 million readers collected since the Telegraph erected a metered paywall around its website in 2013.
Data analysis during live campaigns will help increase optimisation, adapting the content offering to maximise customer engagement.
The publisher will also start providing in-depth post campaign analysis to enable clients to better understand what drives success.
Matt Cory, managing director of Spark at TMG, said: "The launch of Spark is very exciting for TMG. It takes our strengths in creative branded content and bolsters it with data insight, to produce ideas that are right for brands, right for our readers and right for the Telegraph.
"This will ensure that the right idea and the right implementation deliver the results clients want every time.
"Finally, we have found a place where the Mad Men are meeting the Math Men, and actually getting better outcomes."
TMG claims to be providing "significant investment" in analytical tools for Spark and recruiting extra resource.
Included in the new division is a "proactive ideas sales team", new digital designers and developers as well as additional roles in audience development and data insight teams.
TMG’s investment in Spark will also include building on existing strong video capabilities that are vital to campaigns.
Dave King, executive director at TMG, said: "The content and product development teams at TMG have fully endorsed everything we are doing at Spark. This will enable us to ensure that Spark delivers content, insight and audience."