Google Rolls Out AI Marketing Tools in India Following 'Google Tax' Removal

Google has launched its suite of AI-powered advertising tools in India, following their initial U.S. debut in May. The repeal of the so-called "Google tax" has made the South Asian market more appealing to global tech companies selling online ads.

In March, the Indian government eliminated its 6% levy on digital advertisements, effective April, addressing trade concerns previously raised by the Trump administration.

The United States Trade Representative had criticized the tax as "discriminatory and unreasonable" because domestic companies were exempt. Removing this levy reduces costs for tech giants like Google, Meta, and Amazon.

On Thursday, Google hosted the Indian edition of its Marketing Live event to introduce these AI-powered tools to local marketers.

One of the tools, "Generated for You," available within Product Studio, identifies relevant content opportunities across shopping catalogs and pre-generates AI-driven images and videos that merchants can save or publish on Google platforms. Another tool is Smart Bidding Exploration, an opt-in feature for search campaigns that builds on existing Smart Bidding. It uses AI to discover new, qualified leads that merchants might have otherwise missed or not bid on.

Additionally, Google introduced new agentic capabilities in Google Ads and Analytics.

"These agentic tools can learn from advertising inputs—such as datasets, landing pages, assets, and live campaign performance—to eliminate guesswork in achieving business goals," said Dan Taylor, Google's Vice President for Global Ads, during a virtual media roundtable.

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Google also launched AI Max for Search Campaigns, designed to boost search ad performance by identifying more relevant and high-performing search queries. The tool learns from brands' landing pages, existing ads, and keyword lists.

Cashify, an Indian online marketplace for used electronics, reported a 15% increase in conversions and a 12% reduction in customer acquisition costs after deploying AI Max during early testing, according to Google.

Google also announced that ads will begin appearing on AI Overviews in India later this year.

Additionally, the company introduced shoppable connected TV ads on YouTube in India. YouTube’s masthead on mobile will also start displaying ads in the country.

YouTube on connected TVs has been the most-watched streaming service on television in India over the past year, said Roma Datta Chobey, Managing Director of Digital Native Industries at Google India.

India has also become a key market for YouTube Shorts, with short videos viewed trillions of times since launch. About 87% of Indian consumers use YouTube or Shorts as part of their shopping journey, Chobey added.

India's digital advertising sector is expanding rapidly, as the world's second-largest internet market continues to grow. The country's digital ad market is expected to increase by over 20% year-over-year, nearing $7 billion by the end of 2025, according to a recent Dentsu Digital Advertising report.

"India is a thriving digital ecosystem. We have the largest number of users actively trying and testing our products. That’s why we're bringing these innovations to India more quickly," Chobey said in response to TechCrunch's question about the timing of the new AI ad tools.

Google confirmed to TechCrunch that its newly launched features—including AI Max for Search Campaigns, Smart Bidding Exploration, YouTube’s shoppable masthead and CTV ads, and Performance Max Retention-Only Mode—support Hindi to enhance local campaign compatibility. The company also introduced state-level urban and rural audience filters for Indian advertisers to support more detailed media planning, buying, and reporting.

India remains a critical market for Google, not only because it hosts the company's largest user base but also due to steady growth in ad revenue. In fiscal year 2024, Google's gross ad revenue in India grew 11% year-over-year to ₹312.21 billion ($3.6 billion), while net ad revenue increased 18% to ₹27.43 billion ($320 million).