Google Expands AI Marketing Tools to India After Removal of Digital Ad Tax

Google has launched a suite of AI-powered marketing tools in India following the repeal of the so-called ‘Google tax’. The Indian government scrapped its 6% levy on digital advertisements earlier this year, which had previously been criticized by the U.S. government. The repeal is expected to benefit global tech firms like Google, Meta, and Amazon. During its Marketing Live event in India, Google unveiled several new features aimed at helping local marketers improve ad performance. These include ‘Generated for You’, an AI tool that automatically generates images and videos for merchants based on their shopping catalogs. Another feature, Smart Bidding Exploration, uses AI to find new, qualified leads. Additionally, the company introduced AI Max for Search Campaigns, which improves search ad performance by identifying more relevant search queries. YouTube, which remains the most popular streaming service in India, is also part of this expansion, with new ad formats, including shoppable TV ads and a new YouTube masthead. Google confirmed that its new tools will support Hindi and offer more targeted ad options, with the Indian digital advertising market expected to reach nearly $7 billion by the end of 2025. This move solidifies India’s role as a key market for Google, which has seen significant ad revenue growth in the country.