Just last month, Google announced a new set of AI-based marketing tools designed specifically for the Indian market. The announcement comes on the heels of the repeal of the controversial “Google tax.” Google clearly has intentions to showcase relevant and useful advertising experiences to benefit local businesses. Under this initiative, the dynamic and booming digital ecosystem in India is being leveraged.
Google recently held a local version of its Marketing Live event. At this announcement, they both launched some cool new agentic capabilities in Google Ads and Analytics. These tools use the power of artificial intelligence to help advertisers discover the best marketing strategies to reach their audience more accurately and efficiently.
Perhaps the most exciting of these innovations is Google’s “Generated for You” tool, which is integrated into Product Studio. This new, advanced, and dynamic feature enables merchants to identify relevant and valuable content opportunities across diverse merchant catalogs, helping them create targeted and relevant advertising campaigns. The tool goes a step further by pre-generating images and videos via AI, which merchants can save or publish across various Google platforms.
India continues to be a key market for Google, and home to the search engine’s largest user base in the world. In FY2024, Google’s gross ad revenue in India was up 11% YoY to ₹312.21 billion ($3.6 billion). Additionally, its net advertising revenue increased by 18% to ₹27.43 billion ($320 million). Meanwhile, Google’s advertising revenues are still going through the roof, which emphasizes the significance of the Indian market. It’s poised to expand at more than 20% annually and could hit close to $7 billion by the end of 2025.
The recently added state-level urban and rural audience filters hold the potential to further improve advertising precision for Indian marketers. These filters give advertisers instant access to drill down much further into their media planning, buying and reporting. To that end, they’re able to tailor their campaigns to different audience segments.
Dan Taylor, Vice President for Global Ads at Google, called the developments “huge.” He stated, “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 introduction of AI features is perfectly timed with the evolving behavior of today’s consumers in India. Fresh figures show that 87% of Indian shoppers interact with YouTube or Shorts during their shopping trip. This represents a sea change in the journey to discovery and purchase of products now mostly taking place on digital platforms.
Cashify, an Indian e-commerce marketplace for used consumer electronics, experienced huge wins after adopting Google’s AI Max. As a result they increased their conversions by 15% and reduced their customer acquisition costs by 12%! These outcomes are indicative of the real, bottom line benefits that local businesses can achieve by utilizing these creative, new tools.
Chobey, a spokesperson for Google, highlighted the company’s rapid innovation rollout in India, 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.”