Google Introduces AI-Powered Marketing Tools in India After ‘Google Tax’ Repeal
Google has launched a suite of AI-powered advertising tools in India, following their initial release in the U.S. in May. The elimination of the “Google tax” has made the South Asian market even more attractive for global tech firms concentrated on online advertising.
In March, the Indian government repealed its 6% tax on digital advertising, which took effect in April, as a response to trade concerns raised by the Trump administration.
The United States Trade Representative had previously criticized the tax, denouncing it as “discriminatory and unreasonable” due to its exemption for domestic companies. Its removal will lower costs for major tech firms such as Google, Meta, and Amazon.
On Thursday, Google hosted a localized version of its Marketing Live event, where it showcased AI-driven tools specifically designed for Indian marketers.
One of these innovations, “Generated for You,” available in Product Studio, pinpoints valuable content opportunities from shopping catalogs and autonomously generates images and videos using AI, which retailers can either save or publish on Google platforms. Another tool, Smart Bidding Exploration, is an opt-in feature for search campaigns that utilizes existing Smart Bidding strategies and AI to identify new, qualified leads that merchants may not have targeted previously.
Moreover, Google introduced enhanced agentic features within Google Ads and Analytics.
“These agentic tools can analyze advertising inputs, including datasets, landing pages, assets, and campaign performance in real-time, eliminating uncertainty in achieving business objectives,” remarked Dan Taylor, Vice President for Global Ads at Google, during a virtual media session.
Google also introduced AI Max for Search Campaigns, aimed at enhancing the performance of search ad campaigns by identifying more relevant and effective search queries, drawing upon insights from brands’ landing pages, existing ads, and keyword lists.
Cashify, an online marketplace for used electronics in India, recorded a 15% rise in conversions and a 12% decrease in customer acquisition costs after early testing of AI Max, as per Google’s report.
Google further announced that ads will begin appearing on AI Overviews in India by the year’s end.
Additionally, the company has launched shoppable connected TV ads on YouTube in India. These ads will also start to be available on YouTube’s mobile masthead within the country.
YouTube has become the leading streaming service on connected TVs in India over the past year, as shared by Roma Datta Chobey, managing director of Digital Native Industries at Google India.
Furthermore, India has emerged as a key market for YouTube Shorts, which have amassed trillions of views since their introduction. According to Chobey, roughly 87% of Indian consumers interact with either YouTube or Shorts during their shopping journey.
The digital advertising landscape in India is experiencing rapid growth, with the nation recognized as the second-largest internet market globally. Projections indicate that India’s digital ad market will expand by over 20% annually, targeting nearly $7 billion by the end of 2025, as outlined in a recent Dentsu Digital Advertising report.
“India has such a vibrant digital ecosystem. We possess the largest user base actively exploring and testing our products. This is a significant reason for our accelerated rollout of these innovations in India,” commented Chobey when asked about the timing of the new AI advertising tools during a TechCrunch inquiry.
India has always been a crucial market for Google, not only due to having the company’s largest user base but also because of a consistent rise in advertising revenue. In fiscal year 2024, Google’s gross advertising revenue in India grew by 11% year-over-year to ₹312.21 billion ($3.6 billion), while its net ad revenue surged by 18% to ₹27.43 billion ($320 million).
