Google Introduces AI Advertising Tools to India After Tax Repeal

07/10/2025 Technology

Google's rolling out its AI-powered advertising arsenal in India, and I think it's a smart move. It seems like the repeal of the "Google tax" – that 6% levy on digital ads – really opened the door for them. No one likes taxes, right? Scrapping that tax was definitely a win for tech giants like Google, Meta, and Amazon. It makes India a much more attractive market to invest in.

What exactly are they unleashing? Well, "Generated for You" is one of the tools that caught my eye. It uses AI to generate images and videos, helping merchants create compelling content for Google platforms. That's pretty cool. Then there's "Smart Bidding Exploration," an opt-in feature that uses AI to find new, qualified leads. It's like having an AI assistant for your ad campaigns. Smarter bidding, smarter results, as simple as that.

These AI tools are designed to learn from your advertising data, landing pages, and real-time campaign performance. The goal? Take the guesswork out of advertising and help businesses hit their targets. I think the idea is to make advertising more efficient and effective, and who wouldn't want that?

Early Successes

Apparently, some companies are already seeing positive results. Cashify, an online marketplace for used electronics in India, saw a 15% increase in conversions and a 12% reduction in customer acquisition costs after testing AI Max. If these numbers are true, they are impressive and could be a game changer for companies which decides to invest on this technology.

Also, Google will soon start showing ads on AI Overviews in India, and they're introducing shoppable connected TV ads on YouTube. It's a smart way to reach consumers through multiple channels. And with YouTube being the most-watched streaming service on TV in India, it's a huge opportunity.

India's digital ad market is booming, with projections estimating it will reach nearly $7 billion by the end of 2025. It makes sense for Google to bring its latest AI tools to the country. It seems like a win-win situation: Google expands its reach, and Indian businesses get access to cutting-edge advertising technology.

Google says that its new features will support Hindi, and they're introducing state-level urban and rural audience filters for Indian advertisers. This kind of localization is crucial for success in a diverse market like India. It shows Google is serious about catering to the specific needs of Indian businesses.

India is a crucial market for Google, not just because of its huge user base but also because of its growing ad revenues. With the repeal of the "Google tax" and the introduction of these new AI-powered tools, I think Google is positioning itself for even greater success in the country. It's definitely a space to watch.