Google’s AI Ad Tools Expand to India

Capitalizing on India’s booming digital ad market and the removal of a digital services levy, Google is rolling out its AI-powered advertising suite to the South Asian nation. These tools, initially launched in the U.S. in May, aim to assist Indian marketers.

AI-Powered Advertising Arrives

After the Indian government eliminated its 6% tax on digital advertisements in April, a move designed to resolve trade issues, Google introduced its AI-driven resources for Indian marketers at its Marketing Live event on Thursday.

Among the new offerings is “Generated for You,” within Product Studio, which uses AI to identify content opportunities and pre-generate images and videos for merchants to use across Google platforms. Additionally, Google is launching Smart Bidding Exploration, an opt-in feature that uses AI to identify new, qualified leads for search campaigns.

In a virtual media roundtable, Dan Taylor, Vice President for Global Ads at Google, stated that these agentic tools are designed to “learn from advertising inputs, including datasets, landing pages, assets, and real-time campaign performance, to take the guesswork out of achieving business goals.”

Enhanced Campaign Performance

Google introduced AI Max for Search Campaigns, which enhances search ad campaign performance by identifying relevant search queries from landing pages, existing ads, and keyword lists.

According to Google, used electronics marketplace Cashify experienced a 15% increase in conversions and a 12% reduction in customer acquisition costs during early testing of AI Max.

Ads on AI Overviews and YouTube

Later this year, Google also plans to introduce ads on AI Overviews in India. Furthermore, shoppable connected TV ads are now available on YouTube in India, and YouTube’s mobile masthead will begin serving ads as well.

Roma Datta Chobey, managing director of Digital Native Industries at Google India, noted that YouTube on connected TVs has been India’s top streaming service over the past year.

Moreover, Chobey added that 87% of Indian consumers use YouTube or Shorts during their shopping process, reflecting the platform’s significance in purchase decisions.

India’s Growing Digital Ad Market

With internet penetration continuously rising, India’s digital advertising market is expanding rapidly. A recent report projects a growth rate exceeding 20% year-over-year, reaching nearly $7 billion by the end of 2025. In fact, experts forecast that India will account for 14.4% of global media ad spend by 2026 (Statista 2024).

Chobey explained the timing of the new AI ad tools, stating, “India is such a thriving digital ecosystem. We have the largest number of users who are actively trying and testing our products. So, that’s really the reason behind us getting these innovations to India faster.”

Localized Compatibility

Google confirmed that features like AI Max for Search Campaigns, Smart Bidding Exploration, YouTube’s shoppable masthead and CTV, and Performance Max Retention-Only Mode support Hindi. The company also introduced state-level urban and rural audience filters for Indian advertisers.

In fiscal year 2024, Google’s gross ad revenue in India increased 11% year-over-year, totaling ₹312.21 billion ($3.6 billion). Net advertising revenue saw an 18% increase, reaching ₹27.43 billion ($320 million).