AI and Machine Learning set to drive India's $8 billion digital advertising industry, say experts

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generative intelligence and machine learning, are expected to significantly impact the Indian digital advertising industry, which is currently valued at approximately USD 8 billion (about ₹66,142 crore), as stated by Siddharth Jhawar, the General Manager of Moloco in India. "Advertisers have long pondered the effectiveness of their ads, many relying on intuition alone. Operational machine learning, however, can revolutionise the USD 8-billion Indian digital advertising industry as it can run thousands of mini experiments to decide which ad creative appeals to which type of users," said Jhawar.

Given the diverse linguistic and cultural landscape of India, this holds particular significance, he noted. Notably, Google has introduced advertising campaign processes and the automatic creation of ads through the utilization of Learning Language Models (LLM) and generative AI within Google Ads. According to Dan Taylor, the Vice President of Global Ads at Google, leading companies such as Myntra, Samsung, HDFC, and Tata AIG have witnessed growth rates of up to 18 per cent through the use of Performance Max.

This advertising tool incorporates Google's AI technologies for bidding, budget optimization, audience targeting, creative development, and attribution. Jhawar also emphasized that companies have the opportunity to leverage deep neural networks, which fuel machine learning, to boost revenue using first-party data. Importantly, this can be achieved while upholding data privacy and delivering personalized experiences to customers.