July 10, 2025 | Techxnow News Desk
Google has launched a suite of AI-powered marketing tools in India, following the government’s decision to scrap the 6% digital advertising tax. This move not only reduces costs for global tech firms but also makes India an even more attractive market for digital ad innovations.
India Becomes Priority Market After “Google Tax” Repeal
In March, India repealed its 6% equalization levy—commonly dubbed the “Google tax”—which had applied to foreign digital ad services. The tax, criticized by the U.S. Trade Representative as “discriminatory,” was seen as a barrier for global tech companies operating in the country. Its removal in April 2025 has paved the way for tech giants like Google, Meta, and Amazon to expand ad operations more aggressively in India.
AI-Powered Tools Debut at Marketing Live India
At its Marketing Live India event, Google unveiled several AI-based advertising tools tailored for Indian marketers:
1. “Generated for You” in Product Studio
This generative AI tool scans a merchant’s product catalog to identify promotional opportunities and auto-creates visuals—like images and short videos—that can be used instantly across Google platforms.
2. Smart Bidding Exploration
An enhancement to the existing Smart Bidding tool, this opt-in feature uses AI to identify new, qualified leads and search queries that advertisers typically don’t bid on.
3. Agentic AI in Google Ads & Analytics
These intelligent systems analyze inputs such as datasets, landing pages, campaign assets, and performance metrics in real time to optimize ad campaigns and eliminate guesswork.
AI Max for Search Campaigns Shows Promising Results
Google also launched AI Max for Search Campaigns, an advanced AI-driven tool that enhances ad reach and relevance by learning from brands’ landing pages, keyword lists, and past campaign data.
Early Success with Cashify
Indian marketplace Cashify, which sells used electronics, reported a 15% boost in conversions and a 12% drop in customer acquisition costs during its early tests of AI Max, according to Google.
YouTube Ads Evolve: Shoppable & Connected TV Formats Arrive
Google is expanding its ad offerings on YouTube in India, where the platform dominates connected TV viewership:
- Shoppable Connected TV Ads: Brands can now run interactive, product-linked ads on YouTube viewed via smart TVs.
- YouTube Masthead Ads on Mobile: These high-impact ad placements are now live in India, helping brands drive awareness at scale.
YouTube’s presence remains strong across devices. Roma Datta Chobey, Managing Director of Digital Native Industries at Google India, noted that YouTube is the most-watched streaming service on Indian TVs.
YouTube Shorts: A Key Part of India’s Shopping Journey
Short-form video content continues to shape consumer behavior in India. Google shared that:
- YouTube Shorts has been viewed trillions of times since its launch.
- 87% of Indian consumers use YouTube or Shorts during their shopping journey.
These trends underscore why Google is doubling down on AI-backed tools to support commerce through video platforms.
Localized Features and Language Support
To improve campaign relevance and reach, Google announced several India-specific updates:
- Hindi language support for new features like AI Max, Smart Bidding Exploration, and Performance Max Retention-Only Mode.
- State-level audience filters, including urban and rural segmentation, to help advertisers fine-tune their media planning and reporting.
India’s Digital Ad Market on the Rise
India remains a crucial market for Google, both in terms of users and revenue. According to the company:
- Gross ad revenue in FY 2024 grew 11% year-over-year to ₹312.21 billion (~$3.6 billion).
- Net ad revenue rose 18% to ₹27.43 billion (~$320 million).
The country’s digital advertising market is projected to grow over 20% year-over-year, hitting nearly $7 billion by end of 2025 (per Dentsu Digital Advertising).
Final Word
With rising internet adoption, a thriving e-commerce landscape, and a large base of digital-first users, India is fast becoming the testing ground for global tech innovations. By launching its latest AI-powered tools in the region, Google is reinforcing India’s role as a key player in the future of digital marketing.
sources ( Techcrunch )
