Google's suite of AI-driven advertising tools has made its debut in India following the initial launch in the U.S. Back in May. This significant stride into the South Asian market benefits from the recent repeal of the so-called "Google tax," making it an attractive prospect for global tech giants looking to expand their online ad sales.

In order to tackle some trade issues raised during the Trump administration, India made the decision to eliminate its 6% tax on digital ads back in March, which came into effect the following month. The U.S trade representative had formerly criticized this tax claiming that it was unjust and favored local businesses.

The recent local version of Google's Marketing Live event was the perfect platform for Google to introduce its new tools to Indian marketers. These tools include the "Generated for You" feature, an opt-in service known as Smart Bidding Exploration, as well as the announcement of new capabilities in Google Ads and Analytics.

During a virtual media roundtable, Dan Taylor, Global Ads Vice President at Google, explained that the new tools have the ability to learn from advertising inputs. This includes, but is not limited to datasets, landing pages, and real-time campaign performance. As a result, achieving business goals is made simpler, reducing reliance on guesswork.

Take a look at the latest innovative features from Google:

New capabilities in Google Analytics.Image Credits: Google

Want to dive deeper? You might want to know more about AI Max for Search Campaigns, introduced by Google. This service is designed to elevate search ad campaigns by identifying potent search queries. The AI system learns from a brand's landing page, existing ads, and keyword lists to provide this feature.

The Indian online marketplace for used electronics goods, Cashify, is already reaping the benefits. Having incorporated AI Max during its trial phase, the company has seen its conversions increase by 15% while reducing customer acquisition costs by 12%.

You can look forward to ads appearing on AI Overviews in India later this year, as announced by Google. Moreover, they've also extended their shoppable connected TV ads on YouTube to India, which is a considerable development.

YouTube's shoppable masthead has now reached India.Image Credits: Google

Roma Datta Chobey, managing director of Digital Native Industries at Google India, emphasized the popularity of YouTube on connected TVs in the country, referencing it as the most-viewed streaming service on television. Short videos on YouTube Shorts platform are also immensely popular, forming part of the shopping journey for as many as 87% of Indian consumers.

India's digital ad market is growing fast, with predictions showing a 20% year-on-year growth, contributing to its position as the world's second-largest internet market. Responding to a question from TechCrunch regarding the swift rollout of AI tools in India, Chobey underlined India's bustling digital ecosystem and the active engagement of its users which motivates their fast-paced innovations.

The newly launched features support Hindi to improve local campaign compatibility, while rural and urban audience filters enable more targeted media planning, buying, and reporting. It's worth mentioning that this growth isn't a complete surprise for Google, as India is home to their biggest user base and has shown a consistent increase in ad revenues. The Indian market is crucial for Google, which saw its gross advertising revenue jump by 11% in the fiscal year 2024, amounting to ₹312.21 billion ($3.6 billion), with net advertising revenue growing by 18% to reach ₹27.43 billion ($320 million).