Google Launches AI Marketing Tools in India Post-Tax Repeal
▼ Summary
– Google launched AI-powered advertising tools in India after the repeal of the 6% “Google tax,” making the market more attractive for global tech firms.
– The tools include “Generated for You” for AI-generated content and Smart Bidding Exploration to optimize ad campaigns using AI.
– Google introduced AI Max for Search Campaigns, which improved conversions by 15% and reduced costs by 12% for early tester Cashify.
– Ads will appear on AI Overviews in India later this year, and shoppable connected TV ads are now available on YouTube.
– India’s digital ad market is projected to grow over 20% annually, reaching nearly $7 billion by 2025, driven by its large and active user base.
Google has rolled out its latest AI-driven marketing solutions in India, marking a strategic expansion following the removal of the country’s digital ad tax. The move comes after the Indian government abolished the 6% levy on digital advertisements earlier this year, a decision that has significantly lowered operational costs for global tech companies operating in the region.
At its recent Marketing Live event in India, the tech giant showcased several AI-powered tools designed to help local businesses optimize their advertising efforts. Among these is “Generated for You,” a feature within Product Studio that automatically creates AI-generated images and videos tailored to merchants’ shopping catalogs. Another highlight is Smart Bidding Exploration, an AI-enhanced tool that identifies high-potential leads often missed by traditional bidding strategies.
Google also unveiled new agentic capabilities in Google Ads and Analytics, which leverage machine learning to analyze campaign performance in real time. According to Dan Taylor, Google’s VP of Global Ads, these tools eliminate guesswork by learning from datasets, landing pages, and live campaign metrics.
One of the standout innovations is AI Max for Search Campaigns, which refines ad performance by analyzing landing pages, existing ads, and keyword lists. Early adopters like Cashify, an Indian marketplace for used electronics, reported a 15% increase in conversions and a 12% reduction in customer acquisition costs during testing.
The company also confirmed that ads will soon appear in AI Overviews in India, further integrating AI into the advertising experience. Additionally, YouTube’s shoppable connected TV ads and mobile masthead ads are now live in the country, capitalizing on India’s booming streaming market.
India’s digital ad space is expanding rapidly, with projections indicating a 20% annual growth, reaching nearly $7 billion by 2025. Roma Datta Chobey, Google India’s MD for Digital Native Industries, emphasized the country’s importance as a testing ground for new innovations, citing its vast and engaged user base.
To better serve local advertisers, Google has introduced Hindi support for its latest tools, along with state-level audience filters for urban and rural targeting. The company’s fiscal 2024 results further underscore India’s significance, with gross ad revenue climbing 11% to ₹312.21 billion ($3.6 billion) and net ad revenue surging 18% to ₹27.43 billion ($320 million).
With these advancements, Google is reinforcing its commitment to India’s digital economy, leveraging AI to help businesses maximize their advertising potential in one of the world’s fastest-growing markets.
(Source: TechCrunch)
