Google brings its AI-powered marketing tools to India after ‘Google tax’ repeal
Google has launched a series of its AI-driven advertising tools in India, which debuted In the US in May, because the withdrawal of the so-called “Google Tax” has made the South Asian market more attractive for global technology companies that sell online advertisements.
In March, the Indian government are 6% levy on digital advertisementsIn April, as a step to tackle part of the trade issues expressed by the Trump administration.
The trade representative of the United States had criticized the levy by calling the ‘discriminatory and unreasonable’ because domestic companies were exempt. The withdrawal would alleviate the costs for technical giants, including Google, Meta and Amazon.
On Thursday, Google organized the local version of its marketing live event to make its AI-driven tools for Indian marketers debut.
One of the tools is “generated for you”, available in product studio, which identifies relevant content options in store catalogs and pre-generating images and videos via AI that sellers can store or publish on Google platforms. Another tool is an opt-in-function called Smart Bidding Exploration in search campaigns, which is based on existing smart bids and uses AI to find newer, qualified leads that traders would not have typically recorded or offer.
In addition, Google introduced new Agentic options in Google advertisements and analyzes.
“These agent tools can learn from advertising input, including datasets, destination pages, assets and real-time campaign performance, to get the guesswork from achieving business goals,” said Taylor, vice-president for global advertisements at Google, on a virtual media round table.
Google brought AI Max for search campaigns, which aims to improve the performance of the search advertising campaign by identifying more relevant and well -performing searches by learning from the destination pages of brands, their existing advertisements and existing keyword lists.
Indian Online Marketplace for used electronics, Cashify, saw its conversions with 15% and the customer’s acquisition costs reduced by 12% after the deployment during early tests AI Max, Google said.
Google also announced that advertisements will appear on AI overviews in India later this year.
Moreover, the company has introduced its Shoppable Connected TV advertisements on YouTube in India. YouTube’s Masthead on mobile is now also starting to serve advertisements in the country.
YouTube on Connected TVS is the most viewed streaming service on television in India in the past year, said Roma Datta Chobey, director of Digital Native Industries at Google India.
Likewise, the country has been an important market for YouTube shorts, with short videos on the platform viewed trillions since the launch. No less than 87% of Indian consumers look at YouTube of Shorts as part of their store trip, Chobey said.
The presence of digital advertisement from India is growing, because the world’s second largest internet market continues to see that more users come online. The digital advertising market of the country is expected grows more than 20% on an annual basisAlmost $ 7 billion reached until the end of 2025, according to a recent digital advertising report from Dentsu.
“India is such a flourishing digital ecosystem. We have the largest number of users who actively try and test our products. So that is really the reason for us who get these innovations to India faster,” said Chobey, in response to WAN about the timing of the new AI Ad tools.
Google confirmed to WAN that the newly launched functions, including AI Max for search campaigns, Smart Bidding Exploration, YouTube’s Shoppable Masthead and CTV, and performance Max Retention-Modus Hindi to improve the compatibility of the local campaign. Moreover, the company introduced urban and national public public public people for Indian advertisers to make more detailed media planning, and make reporting possible.
India has long been an important market for Google, not only because it organizes the largest user base in the company, but also because of the consistent growth in AD revenues. In the tax year 2024, Google’s gross advertisement income in India Increased 11% Year-on-year to £ 312.21 billion ($ 3.6 billion), while the net advertising sales increased by 18% to £ 27.43 billion ($ 320 million).
