Later this year, Google brings ads to AI Overviews in India, fundamentally changing how users interact with search results on the platform. This comes with a new set of marketing AI tools designed specifically for India’s growing economy. The news was shared at the Google Marketing Live India event on July 10, where officials discussed the ongoing impact of AI on advertising, especially for marketers in the country. India will be the first country to receive the integration of ads within AI Overviews outside the US, highlighting India’s increasing significance for Google’s plans.
Ads Coming to AI Overviews in India
AI Overviews are summaries created by artificial intelligence that appear at the top of Google Search results. They summarize relevant content from various sources to provide answers to user queries. These summaries are expected to incorporate “Sponsored” ads soon. These will be drawn from existing campaign types—Search, Shopping, Performance Max, and AI Max for Search. Advertisers with broad-match campaigns will automatically qualify for ad placement in these AI-generated snippets.
The ads are set to appear on both mobile and desktop versions of Google Search, and will be clearly labeled as “Sponsored” to differentiate them from organic content. This is similar to changes Google made in the US, where AI Overviews began serving ads earlier this year. The company says advertisers now have enhanced opportunities to reach users at the beginning of their search journeys, before clicking on a link.
With the increasing number of users engaging with mobile-first AI-generated search results, especially in countries like India, the addition of ads here marks the onset of a new phase in the search monetization model.
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India Becomes the Testing Ground
India is now one of the leading countries in terms of internet access, with over 870 million internet users which means that is the country with the largest population of Google users. With this new approach, Google seems to be using India to test their new innovations in AI advertising.
The timing is also worth mentioning. Earlier this year, the Indian government repealed the 6% digital advertising tax (popularly known as the “Google tax”), making the country a more favorable market for foreign technology firms. This policy shift has lowered advertising costs for Google, Meta, Amazon and others, and incentivized them to aggressively expand their activities in India.
New AI-Driven Marketing Tools for Businesses
Along with the changes in search advertising, Google has also launched a set of new marketing tools powered by AI designed for Indian advertisers.
A highlight from this set is “Generated for You”, part of Product Studio google offers. It’s an AI based system that studies the catalog of a business and creates marketing material, including videos and images that can be used on Google platforms like Shopping, Business Profiles and Ads. It suggests, as an example, content ideas on the basis of consumer habits and seasons
Another of its features, Smart Bidding Exploration, helps in finding unutilized blind spots for advertisers. It is built on Google’s Smart Bidding Technology and explores new segments and qualified sales easier to capture using more advanced techniques than traditional bidding strategies.
AI Max for Search Campaigns is another of Google’s Innovations which augments search ads by analyzing website content, existing ads, and keywords to surface queries with more relevance.
During Cashify’s testing, a resale platform for Indian electronics, they reported a conservative 15% increase in conversions alongside a 12% decrease in customer acquisition costs with the use of AI Max. These tools appear to be effective, especially for startups and medium-sized businesses trying to optimize their spending.
Shoppable YouTube Ads and Regional Filters
Along with the updates in search and campaign tools, Google is also looking to ramp up its offerings for video ads in the country. The company announced the availability of shoppable CTV ads on YouTube as well as interactive masthead ads on mobile.
Considering YouTube is the most used streaming service on TV in India, this could serve as a game changer for retailers focusing on video advertising. Today, 87% of Indian shoppers use YouTube and Shorts to make their shopping decisions. Whether it’s viewing product reviews or understanding comparisons, video content has become an essential part of their buying journey. Google has clearly spotted this trend, and now it’s come up with new tools for advertisers.
Google has now given advertisers a powerful update: state-level targeting with urban and rural filters. Meaning, now brands can plan, buy, and report their campaigns in a more precise way, whether the target is a metro city or a village audience.
How Google AI Advertising is Being Localized
Google’s new AI tools, including AI Max, Smart Bidding Exploration, and Product Studio, now support Hindi input and output. This is especially helpful for small and medium businesses that operate in non-English speaking regions.
This localization is not just a feature, but also shows Google’s commitment to making its tools relevant to every cultural and language context.It also shows that the company sees Google AI advertising as a critical component of its long-term strategy in India.
Ad integration in AI Overviews
Google has started showing ads through AI Overviews in India, at a time when people are preferring AI-generated quick answers. With this move, it is clear that India has become an experimental zone for AI advertising, where both digital growth and a supportive policy environment are present.
It remains to be seen how users respond after seeing ads in AI-generated results. But one thing is for sure: Google is rolling out its AI-driven marketing tools in India at full speed.
What This Means for Advertisers in India
This is an exciting phase for marketers. With new tools, new ad formats, and Hindi support, brands can now explore new ways to reach their consumers, especially those who make their purchase decisions in just a few taps.
Conclusion
As Google brings AI Overviews to ads, the search experience has just got smarter. Now not just information, but the connection between users and businesses is also getting stronger through AI. With tools like AI Max for Search, Smart Bidding Exploration, and Product Studio, Indian marketers now have new and effective options to reach their audiences.
This is not just a tech update; it is an opportunity to get your brand to people who are at the beginning of their buying journey.
If you are running your own digital campaign, start using these new AI tools now and get ready for a new era in search advertising. Make your campaigns smarter and stay one step ahead in the market.
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