Google has launched its suite of AI-powered advertising tools in India, a move that follows the repeal of the controversial ‘Google tax’ which has rendered the South Asian market increasingly appealing to global tech companies engaged in online advertising. The Indian government abolished the 6% levy on digital advertising in March, effective April, addressing trade concerns raised by the Trump administration. The U.S. Trade Representative had labeled the tax as ‘discriminatory and unreasonable’ since it exempted domestic firms. The repeal is expected to lower operational costs for tech giants such as Google, Meta, and Amazon.
On Thursday, Google introduced its marketing tools at a local version of its Marketing Live event, specifically catering to Indian marketers. One of the standout features is ‘Generated for You’, integrated within Product Studio. This tool discovers relevant content opportunities in shopping catalogs, utilizing AI to pre-generate images and videos that merchants can save or share across Google platforms. Another newly launched feature, Smart Bidding Exploration, utilizes AI to optimize search campaigns by identifying qualified leads that merchants might typically overlook.
Additionally, Google has enhanced its Google Ads and Analytics with new agentic capabilities. Dan Taylor, Google’s Vice President for Global Ads, explained during a virtual media roundtable, “These agentic tools can learn from advertising inputs, including datasets, landing pages, assets, and real-time campaign performance, to take the guesswork out of achieving business goals.”
The company also rolled out AI Max for Search Campaigns, designed to improve the performance of search ad campaigns by identifying relevant and high-performing search queries based on analysis of brand landing pages and existing ads. Cashify, an Indian online marketplace for used electronics, reported an increase in conversions by 15% and a 12% reduction in customer acquisition costs after early testing with AI Max.
Looking ahead, Google plans to introduce ads on AI Overviews in India later this year. Also, the company announced that shoppable connected TV ads will debut on YouTube in the country, coinciding with the mobile masthead beginning to display ads.
YouTube continues to be a dominant streaming service in India, as noted by Roma Datta Chobey, managing director of Digital Native Industries at Google India. Additionally, YouTube Shorts has gained immense popularity, amassing trillions of views since its launch. Chobey stated that 87% of Indian consumers integrate YouTube or Shorts into their shopping experience.
India’s digital advertising landscape is expanding rapidly, with the country projected to see its digital ad market grow over 20% annually, reaching nearly $7 billion by the end of 2025, according to a recent report by Dentsu Digital Advertising. Chobey emphasized the vibrancy of India’s digital ecosystem, 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.”
Furthermore, Google has confirmed that its newly launched features, including AI Max for Search Campaigns and Smart Bidding Exploration, will support Hindi, enhancing local campaign effectiveness. The company has also introduced state-level audience filters to help Indian advertisers in more precise media planning and reporting.
India has been a crucial market for Google, not only for hosting the largest user base but also for consistent growth in ad revenues. In fiscal year 2024, Google’s gross advertising revenue in India increased by 11% year-over-year to ₹312.21 billion ($3.6 billion), while net advertising revenue rose 18% to ₹27.43 billion ($320 million).
