Google is aggressively expanding its AI-driven marketing suite in India, following the repeal of the “Google tax,” introducing advanced tools to optimize ad performance and monetization across its platforms.
AI-Powered Results for Indian Advertisers
The tech giant is rolling out its AI Max tool for Search Campaigns, which has already demonstrated significant efficacy in the region. Cashify, an online marketplace for used electronics, reported a 15% increase in conversions and a 12% reduction in customer acquisition costs during early testing of the AI-powered suite.
New YouTube Advertising Frontiers
Beyond search, Google is transforming the YouTube experience in India by introducing shoppable connected TV (CTV) ads. Additionally, YouTube’s mobile masthead will now serve as a prime advertising slot. This shift targets the massive consumption patterns in the region, where YouTube on connected TVs has become the most-watched streaming service over the past year.
Roma Datta Chobey, managing director of Digital Native Industries at Google India, highlighted that 87% of Indian consumers incorporate YouTube or Shorts into their shopping journeys. Furthermore, Google confirmed that ads will begin appearing within AI Overviews in India later this year.
Capitalizing on a Growing Digital Ad Market
India represents a vital digital ecosystem for Google, characterized by a massive user base and consistent revenue growth. According to a recent Dentsu Digital Advertising report, the country’s digital ad market is projected to grow over 20% year-over-year, reaching nearly $7 billion by the end of 2025.
To support this scale, Google is localizing its features. New tools—including Performance Max Retention-Only Mode and Smart Bidding Exploration—now support Hindi. Additionally, the company has introduced urban and rural audience filters at the state level, allowing advertisers to execute more granular media planning.
The financial stakes are significant. In fiscal year 2024, Google’s gross ad revenue in India increased 11% to ₹312.21 billion ($3.6 billion), while net advertising revenue climbed 18% to ₹27.43 billion ($320 million).
