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AI is rapidly transforming digital advertising, making campaigns more efficient, targeted, and data-driven. From machine learning optimising real-time bidding to generative AI crafting personalised creatives at scale, brands are leveraging AI to enhance audience engagement and maximise ROI. Predictive analytics help advertisers place the right ads in front of the right users, while AI-powered chatbots and recommendation engines refine the customer journey.
However, with increasing reliance on AI, concerns around data privacy, algorithmic transparency, and regulatory scrutiny are growing. And at the heart of this evolving ecosystem is Google, whose AI-driven adtech solutions continue to shape the industry even as the industry itself becomes more complex and multi-faceted.
Shekhar Khosla, Vice President - Marketing for Google India, believes that AI is no longer just a tool for efficiency but a driving force reshaping the way brands connect with consumers. In a conversation with exchange4media, Khosla shared insights into how Google is leveraging AI to create hyper-personalised marketing experiences, enhance advertising efficiency, and transform consumer journeys.
“There has never been a more exciting time to be in marketing," Khosla states. "Consumer journeys are becoming increasingly complex, but AI-powered tools are giving marketers the ability to deliver hyper-personalised experiences that were previously just concepts. AI is enabling not just better targeting but also real-time measurement, significantly improving marketing ROI.”
He explains that while traditional marketing followed a linear path—moving from awareness to consideration and finally to conversion—today's consumer seamlessly moves across different phases, sometimes engaging in multiple steps simultaneously. “Consumers are streaming, scrolling, searching, and shopping all at once. This means brands can no longer think of marketing in silos. AI enables a full-funnel approach where the entire journey is mapped out, ensuring the right message reaches the right consumer at the right time.”
One of the most striking shifts in consumer behavior is the increasing reliance on visual search. Google Lens, for instance, is witnessing over 20 billion visual searches a month, with one in four being commercial in nature. “People are now searching for what they see. With Circle to Search, users can circle, highlight, or tap on objects without switching apps. This presents a massive opportunity for advertisers to connect with consumers in new and innovative ways,” Khosla says.
Google's advertising ecosystem is also undergoing a transformation, powered by AI-driven campaigns that optimise ad placements and creatives. A case in point is Tidal Beauty, which leveraged AI-optimised product feeds and Performance Max to see a 27% boost in conversion value. Similarly, Zepto used AI-generated animated image ads to drive 11% more efficient app installs at twice the scale, achieving in hours what previously took weeks. “Speed and scale are the biggest advantages AI brings to advertising,” Khosla emphasises.
YouTube is another major player in Google’s AI-powered marketing ecosystem, with Shorts emerging as a key driver of engagement. “YouTube Shorts ads are watched for longer, are better liked, and are seen as more personally relevant than ads on other platforms. A recent survey in India found that 72% of respondents said YouTube Shorts ads helped them decide what to purchase—over twice as much as other short-form video platforms,” he reveals.
The democratisation of digital advertising is another area where AI is making a significant impact. “One of Google's core missions is to make advertising accessible to businesses of all sizes. A small business in Bareilly can run a highly targeted campaign with just a couple of rupees a day and see tangible results. Our AI-powered tools take care of keyword optimisation, audience targeting, and even creative generation, allowing small businesses to compete with larger players on a level playing field,” he explains.
“Language and voice are crucial for digital adoption in India. We see voice as one of the most popular ways people interact with technology, and we want to ensure AI is available to them in a way that feels intuitive,” adds Khosla.
Google’s marketing campaigns are also evolving to reflect the changing landscape. The “Prompt Karo, Aage Badho” campaign, for example, showcases how AI can be integrated seamlessly into daily life, helping users with everything from learning to business optimisation. “We wanted to show how AI is not just for tech-savvy individuals but for everyone. Whether it’s a student using Gemini for research or an entrepreneur optimising ads, AI can enhance productivity and creativity across the board,” Khosla says.
Speaking of mass reach, there is also the rise of Google’s presence in mainstream advertising, particularly the involvement of Google Search in the IPL this year. While Khosla does not elaborate, he acknowledges that the move aligns with Google's goal of making its products more widely accessible. “Our focus is always on ensuring our products reach as many users as possible in the most relevant way,” he states.
Looking ahead, Khosla believes AI will continue to redefine marketing strategies. “Marketers who deeply integrate AI tools see 60% greater revenue growth than their peers. AI is no longer an experiment; it’s an essential part of digital strategy. With Gemini 2.0, our most advanced model yet, AI is now embedded deeper into our ad products, enabling businesses of all sizes to drive better results.”
This leads to Khosla’s invitation to the marketing ecosystem to embrace AI wholeheartedly. “AI isn’t just an add-on; it’s the future of marketing. From creative ideation to campaign execution and measurement, AI is transforming every aspect of digital advertising. The brands that adapt now will lead the industry in the coming years,” he says.
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