How to create make material colour change/ink run effct?

I want to make the player to touch a static mesh and it to change colour.

But I want an effect to happen, like where the player touches the colour spreads out to the rest of the static mesh from that exact point of contact.

Is that possible? and if so how would that be done?

I can tell you its possible, but creating that actual result is extremely complex and out of my know-how.
But yes, its possible.