Goole is expanding its AI advertising tools to India, thanks in part to a recent policy shift that’s made the market more welcoming.
Why Now?
India just dropped its 6% digital ad tax, also known as the “Google tax.” That’s a big deal.
The tax had made it more expensive for companies like Google to run ad services in India. After pressure from the U.S., including claims the tax was unfair, India decided to scrap it in April. With that roadblock gone, Google wasted no time moving forward.
Now, it’s bringing its latest AI marketing features to one of its largest and fastest-growing markets.
Google’s AI Ad Tools Are Now Live in India
Google held a special Marketing Live India event to announce the rollout of its U.S.-launched AI advertising tools to Indian brands and marketers.
Here’s what’s now available:
- “Generated for You” in Product Studio
This tool looks at your product catalog and automatically creates ad-ready images and videos you can post on Google platforms. It takes the guesswork out of content creation. - Smart Bidding Exploration
An opt-in feature for search campaigns that finds new leads—ones you may not have even thought to target. It builds on Google’s existing smart bidding but goes a step further using AI. - AI Max for Search Campaigns
This tool studies your landing pages, keyword lists, and current ads to suggest better-performing search terms and improve campaign results. - Agentic AI in Ads and Analytics
These new features act like smart assistants. They look at your ad data, website, and performance in real time to help you hit your marketing goals faster—with less trial and error.
Proof It’s Working: Cashify’s Case
Google shared a success story from Cashify, a company that sells used electronics online.
After trying AI Max during early tests, they saw:
- 15% more conversions
- 12% lower customer acquisition costs
That’s not just nice-to-have — that’s a serious edge in a competitive market.
YouTube Ads Just Got Smarter Too
Google isn’t stopping with search. It’s making big changes to how ads work on YouTube in India.
Here’s what’s new:
- Shoppable Connected TV (CTV) ads:
Now, if you’re watching YouTube on your smart TV, you’ll start seeing ads you can shop from directly. - Mobile YouTube Masthead Ads:
These premium banner-style ads are rolling out across Indian mobile devices.
According to Google, YouTube is now the most-watched streaming platform on TVs in India. And Shorts — those short-form videos — are booming too. In fact, 87% of Indian consumers say they use YouTube or Shorts as part of their shopping decisions.
Even More Changes Coming
Later this year, ads will begin showing up inside Google’s AI Overviews, those AI-generated search summaries that have started appearing in results.
Plus, Google confirmed that:
- All the new tools support Hindi
- Indian advertisers can now target users by state, and even distinguish between urban and rural audiences
This gives brands in India more control, better reach, and more meaningful ways to connect with customers.
Why India Matters So Much
India isn’t just another market—it’s one of Google’s most important regions globally.
The numbers speak for themselves:
- India’s digital ad market is expected to hit $7 billion by the end of 2025, growing over 20% year after year.
- Google’s gross ad revenue in India was ₹312.21 billion ($3.6B) in 2024.
- Its net ad revenue jumped 18% to ₹27.43 billion ($320M).
“India is a thriving digital ecosystem,” said Roma Datta Chobey, MD of Digital Native Industries at Google India.
“We have the largest number of users testing and adopting our products. That’s why we’re moving faster here.”
Final Thoughts
Google sees India not just as a big audience—but as a global leader in digital innovation.
With the tax barrier removed and demand for online advertising rising fast, now’s the perfect time for Indian businesses to harness AI in their marketing. Whether you’re a small brand or a national retailer, tools like AI Max, Smart Bidding, and YouTube’s new formats offer smarter, faster ways to grow.
The future of advertising in India just got a major upgrade — and it’s powered by AI.