Google AI Marketing Tools Launch in India

Google has introduced its suite of AI-powered advertising tools in India, following their initial debut in the U.S. in May. The repeal of the “Google tax” has increased the attractiveness of the South Asian market for global tech firms selling online ads.

Repeal of Digital Advertisement Levy

In March, the Indian government eliminated its 6% levy on digital advertisements, effective in April. This action addressed trade concerns raised by the U.S. Trade Representative, who had previously criticized the levy as “discriminatory and unreasonable” because domestic companies were exempt. The repeal is expected to reduce costs for tech companies such as Google, Meta, and Amazon.

AI-Powered Tools for Indian Marketers

Google's Marketing Live event showcased AI-powered tools for Indian marketers. One tool, “Generated for You,” available within Product Studio, identifies content opportunities across shopping catalogs and uses AI to pre-generate images and videos that merchants can save or publish on Google platforms.
Another tool is Smart Bidding Exploration, an opt-in feature in search campaigns that uses AI to identify new, qualified leads. Google has also introduced new agentic capabilities in Google Ads and Analytics.

Enhancements and Capabilities

According to Dan Taylor, Vice President for Global Ads at Google, these agentic tools analyze advertising inputs, landing pages, assets, and real-time campaign performance to improve business outcomes. Google also introduced AI Max for Search Campaigns, designed to improve search ad campaign performance by identifying relevant search queries using data from landing pages, existing ads, and keyword lists.
Cashify, an Indian online marketplace for used electronics, reported a 15% increase in conversions and a 12% reduction in customer acquisition costs after using AI Max in early testing.

Additional Features and Market Growth

Google announced that ads will appear on AI Overviews in India later this year and introduced shoppable connected TV ads on YouTube in India. YouTube’s masthead on mobile will also start serving ads in the country. Roma Datta Chobey, managing director of Digital Native Industries at Google India, noted that YouTube on connected TVs has been the most-watched streaming service in India over the past year.

YouTube Shorts has also seen significant engagement in India, with trillions of views since its launch. Chobey stated that 87% of Indian consumers use YouTube or Shorts during their shopping journey. India's digital ad market is projected to grow over 20% year-over-year, reaching nearly $7 billion by the end of 2025, according to a Dentsu Digital Advertising report.

Google confirmed that its newly launched features, including 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, while its net advertising revenue rose 18%.