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Google expands AI-driven ads in India, betting on generative search to power growth
Google is set to roll out ads within its AI search experiences in India, expanding its monetization strategy for generative search while unveiling new AI-powered ad tools and YouTube shopping formats in its largest user market.
Touted as a groundbreaking tool to warn Google Android users of imminent seismic activity—particularly in regions lacking traditional early warning infrastructure—the AEA system significantly underestimated the earthquake’s magnitude, thereby failing to issue timely, life-saving alerts to millions.
Google will expand ads within its AI-powered search experiences to India later this year, aiming to monetize its generative AI tools in its largest user market.
The company said ads will appear within AI Overviews, its AI-generated search summaries, on desktop and mobile, labeled as “Sponsored,” when relevant to user queries. The move follows tests in the US and comes alongside the rollout of AI Mode, Google’s answer-engine search experience, in India.
“At a time when people discover and make decisions in new ways, this expansion gives businesses more opportunities to reach audiences,” said Dan Taylor, Google’s Vice President of Global Ads, at Google Marketing Live India.
Advertisers using Performance Max, Shopping, Search, and AI Max campaigns will be eligible to place ads in AI Overviews and AI Mode. Google is also launching “Generated For You” in Product Studio, which uses AI to create images and videos for campaigns across Google platforms.
The company previewed “agentic” AI tools for Google Ads and Analytics that will suggest keywords, audiences, and insights to optimize campaigns automatically.
On YouTube, Google is rolling out shoppable connected TV ads and mobile mastheads in India, tapping into what it says is the most-watched streaming platform on televisions in the country.
Early tests of Google’s new AI ad tools have shown promise, with Cashify reporting a 15 percent increase in conversions, and Swiggy cutting re-engagement costs by nearly two-thirds using Retention Mode.
India remains critical for Google’s future growth, with gross ad revenues rising 11.3 percent year-on-year to ₹31,221 crore in FY24.
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