Google has rolled out Gemini-powered AI agents inside Search ads in India, along with YouTube BrandStack and a wave of new agentic advertising tools for marketers.
Google has introduced a new generation of agentic advertising tools in India, including an AI agent that lives directly inside Search ads. Announced on Thursday, July 9, the launch includes Gemini-powered products such as Business Agent for Leads, Ask Advisor, and YouTube BrandStack, a solution conceptualised and built locally in India. The move signals a clear shift in Google’s advertising strategy, from automating ad tasks to deploying autonomous AI agents that can plan, manage, and optimise campaigns on behalf of marketers.
An AI Agent Inside Search Ads
The headline launch is Business Agent for Leads, a new Google Search ad format that embeds a Gemini-powered AI agent within the ad itself. Users can chat with the agent and ask questions without ever leaving the search results page.
The agent is trained on the advertiser’s website, which allows it to answer product and service queries accurately and turn those conversations into qualified leads. The feature is currently available in beta in India, and edtech platform Upgrad received early access to use it for engaging prospective students.
Alongside it, Google unveiled Ask Advisor, a Gemini-powered assistant for marketers. It gathers insights across Google Ads, Google Analytics, Google Marketing Platform, and soon Merchant Center, and then delivers personalised recommendations on how a business can reach its goals.
Why Google Is Betting Big on Agentic Advertising
The announcement lands at a moment when AI is rapidly reshaping the digital ad industry. Google and Meta have relied on AI to power advertising for years, but the focus is now moving beyond chatbots to autonomous agents that act on behalf of both users and brands.
The financial stakes are enormous. In April 2026, Google reported advertising revenue of 77.25 billion dollars for the first quarter of 2026, a rise of 15.5 per cent year-over-year. YouTube contributed 9.88 billion dollars in ad revenue for the same quarter. Advertising accounts for roughly three-quarters of Google’s overall revenue, which in turn funds the company’s spending of close to 200 billion dollars on AI infrastructure.
Roma Datta Chobey, Managing Director, Connected Consumer Commerce at Google India, said Gemini has become the engine driving growth for customers across Google’s ads products, describing a transition from marketing automation to marketing intelligence, and ultimately to an agentic era where AI acts as a strategic growth partner for brands.
User behaviour is shifting in parallel. According to Google, queries on AI Mode are three times longer than traditional search queries. In India, 84 per cent of users say they make faster decisions with AI Mode, while 87 per cent report making more confident decisions. Google also says Gemini reduces irrelevant ads by 40 per cent, and Chobey noted that longer, deeper queries give brands far more opportunity to match user intent using AI.
Google is also working with Indian e-commerce companies, including Walmart-backed Flipkart, to bring its Universal Commerce Protocol to India. Launched in January this year, the open standard creates a common language between AI agents and online shopping systems.
YouTube BrandStack and New Creative Tools
YouTube BrandStack stands out as an all-in-one automated solution developed in India that unifies campaign planning, buying, and measurement. Axis Max Life Insurance was the first brand to deploy it alongside YouTube Connected TV during the cricket season, recording an 18.4 per cent surge in brand searches and capturing 23 per cent more quality leads, outperforming traditional TV markets. Google added that YouTube delivers 1.9 times more return on investment of total media compared with traditional OTT platforms and linear TV.
Google has also upgraded Asset Studio, its platform for creating AI-generated ad assets. Merchants and advertisers can now produce brand-accurate text, image, or video ads using natural language descriptions, and can import marketing briefs, reference images, and brand guidelines for deeper customisation.
Other notable launches include:
- AI Max for Shopping: Uses Merchant Center feed context to deeply understand products and improve campaign impact. Google says AI Max for Search Campaigns is its fastest-growing AI-powered Search Ads product.
- AI Brief: A Gemini-powered feature that interprets nuance in marketing briefs, respects brand guardrails, and shows real-time ad previews that can be refined until they match the brand’s vision.
- Dynamic Remarketing: Built on Retention Only Mode in Performance Max, it automatically re-engages high-value lapsed or loyal customers with tailored creative.
- Demand Gen on Google Maps: Advertisers can now reach potential customers based on location during key discovery moments, such as when they are near or entering a store, and can integrate Merchant Center product videos directly into campaigns.
- YouTube Affiliate Partnerships Boost: A new ad format that helps brands incorporate authentic creator content about their products into marketing campaigns.
Measurement and Merchant Center Updates
On the measurement side, Google’s open-source Marketing Mix Model, Meridian, has been integrated directly into Google Analytics 360, allowing businesses worldwide to analyse cross-channel and first-party data in one place. A new metric called Attributed Branded Searches will help advertisers see how exposure to YouTube video ads drives downstream branded searches.
Merchants are getting two significant updates as well. A new AI performance insights tool in Merchant Center will show brands exactly how their products perform across Google’s AI surfaces, including AI Mode, AI Overviews, and the Gemini app. It is rolling out over the coming months. Google is also introducing global conversational attributes, which let advertisers add richer details to their product listings.
What This Means for Creators and Marketers
The rise of AI-generated ad assets has raised concerns about the creator economy, which depends heavily on brand collaborations. Addressing this, Google said creators and AI both have equal and important roles, because success ultimately comes down to consumer resonance, and authentic storytelling that connects with audiences remains irreplaceable for building brand trust.
For marketers in India, the message is clear. Advertising is entering a phase where AI agents will increasingly handle conversations, campaign management, and optimisation, while brands focus on strategy and authenticity. With India serving as both a testing ground and a development hub for products like YouTube BrandStack and Business Agent for Leads, the country sits at the centre of Google’s agentic advertising push.
Frequently Asked Questions
Business Agent for Leads is a Search ad format that embeds a Gemini-powered AI agent inside the ad, letting users chat and ask questions without leaving the search page. Trained on the advertiser's website, it converts conversations into qualified leads and is currently in beta in India.
YouTube BrandStack is an all-in-one automated solution built in India that unifies campaign planning, buying, and measurement. Axis Max Life Insurance deployed it first alongside YouTube Connected TV during the cricket season, gaining an 18.4 per cent surge in brand searches and 23 per cent more quality leads.
Google reported advertising revenue of 77.25 billion dollars for the first quarter of 2026, up 15.5 per cent year-over-year, while YouTube generated 9.88 billion dollars in ad revenue during the same quarter.
