Google’s integration of its multimodal AI model, Gemini, has achieved a 40% reduction in irrelevant ads across its platforms. Dan Taylor, VP of Global Ads, highlighted that ongoing improvements have enhanced query understanding, leading to more aligned advertising with user intent. Over the last two years, Google has launched Gemini-based enhancements nearly once a month, resulting in higher ad quality. In 2025, advertisers using Gemini-generated creatives increased threefold. The AI solutions have significantly impacted Indian brands, with Policybazaar recording a 28% increase in health insurance sales after adopting AI Max, and OYO achieving a 50% boost in return on ad spend using Performance Max campaigns. Consumer behavior is shifting, with 83% of Indian shoppers open to new brands. Google is also investing in agentic AI for commerce, aimed at facilitating seamless online shopping experiences while enhancing its robust advertising revenue, which reached $82.28 billion—a 13.5% year-on-year growth.
Source link
