The shift towards AI-powered advertising is transforming how consumers make decisions and interact with brands. As search technology evolves to better anticipate consumer intent earlier in the journey, platforms like Google and YouTube are becoming essential touchpoints for both discovery and decision-making.
Dan Taylor, Vice President of Google Ads, Google, shared valuable insights at a recent roundtable about how AI is driving this shift and what it means for marketers. According to Taylor, “Search actively connects people to the entire web and introduces them to new brands, products, videos, and ideas.” Over 5 trillion searches are made annually on Google, reflecting how integral the platform has become to consumer purchasing behaviour.
The Role of YouTube in the Shopper’s Journey
Taylor emphasised the importance of YouTube in shaping modern shopping journeys, revealing that “Consumers say they use Google or YouTube in about two-thirds of their purchases for a new brand, product, or retailer they discovered.” YouTube’s vast community of creators is a key driver of this influence, with more than 35 billion hours of shopping-related content being watched on the platform between 2024 and January 2025. The trust that consumers place in creators on YouTube is driving brands to explore new advertising avenues on the platform.
For brands, this presents an opportunity to engage in a meaningful way with potential customers. “Tapping into the large community of creators on YouTube pays off for brands because they’re trusted,” Taylor noted. As consumers increasingly turn to Google for both discovery and decision-making, understanding and adapting to this shift is crucial.
Artificial Intelligence is Now Central to Advertising
Google has long used AI to support advertisers, but the report shows a clear pivot. Predictive AI, used for targeting and bidding, is now being paired with generative AI, which helps brands create ads faster and with greater personalisation.
According to a joint study by Google and BCG cited in the report, businesses that deeply integrated AI tools into their marketing operations experienced 60 percent greater revenue growth compared to others. A food delivery platform, for example, used Dynamic Search Ads combined with first-party audience signals and achieved an 8 percent increase in new user acquisition, while also reducing costs by 26 percent.
AI is no longer just a background tool. It is actively shaping content, targeting, and performance across campaigns.
YouTube is Taking Over the Living Room
Television in India is undergoing a quiet transformation. The report highlights that 82 percent of YouTube Connected TV (CTV) viewers in India now prefer it over traditional linear TV. Additionally, half of YouTube CTV watch time is spent on content longer than 21 minutes. This shows that viewers are engaging with longer, more immersive content through digital platforms, not traditional broadcasters.
One case study from the report shows how Kia India leveraged this trend. The company launched a campaign for its Seltos model using YouTube CTV along with QR codes. This resulted in a 3.6 times increase in conversions compared to standard formats.
YouTube Shorts, the short-form video platform, is also growing quickly. The number of Shorts views on TV screens has doubled over the past year. Seventy-two percent of Indian users said that YouTube Shorts ads helped them make purchase decisions, which is twice the impact of other short-form platforms.
In another example, beauty brand Tira ran a Shorts-only campaign that led to a 228 percent increase in search interest.
Search is Becoming Smarter and More Visual
The report also emphasizes the changing nature of Google Search. AI Overviews now allow users to get summaries and product suggestions tailored to their intent. These features do not just respond to what users are searching but also anticipate what they might want next.
Google Lens, the visual search tool, is handling 20 billion queries each month. About 25 percent of those queries have commercial intent. With features like Circle to Search, users can now highlight a product directly from their surroundings and find shopping options instantly. This is creating new opportunities for brands to engage users in real time, based on visual triggers rather than typed queries.
Search and YouTube Together Create a Unified Commercial Ecosystem
The combined power of Search and YouTube is allowing users to shift seamlessly from discovering products to making buying decisions. Google estimates that more than a billion shopping-related activities now take place across its platforms each day.
Puma India used this approach with Google’s Performance Max campaign. The brand targeted users across multiple Google surfaces and saw a 35 percent reduction in cost per sale and a 66 percent improvement in return on investment compared to other paid channels.
This points to a trend where advertisers need to think across platforms and touchpoints, rather than focus on individual formats or placements.
Gen Z is Driving a New Standard for Engagement
The youngest generation of Indian consumers is reshaping marketing strategies. The report states that 89 percent of Gen Z shoppers use Google tools throughout their shopping process, from initial discovery to final purchase. This group prefers visual content, relies heavily on YouTube, and expects personalized results.
For marketers, meeting Gen Z expectations requires adapting to fast-moving trends and delivering content that is relevant and platform-specific.
AI is Improving Efficiency Across the Board
AI is not only transforming creativity but also making advertising more efficient. Brands like Zepto have used AI tools to reduce the time needed to create video content from several weeks to just a few hours. In addition, real-time optimization has allowed marketers to respond to campaign performance immediately, improving outcomes without waiting for post-campaign analysis.
These tools, which include Smart Bidding and Dynamic Search Ads, are also making it easier to identify and reach high-intent audiences, maximizing budget efficiency.
The Bigger Picture: A New Kind of Internet
While the report clearly showcases how AI can benefit businesses and consumers, it also raises important questions about the future of the open internet. As Google integrates its platforms more tightly, there is growing concern about the power it holds in shaping user journeys and influencing brand visibility.
Search results and content recommendations increasingly depend on algorithmic interpretation. This means that small publishers and independent creators could find it harder to compete with well-optimized or advertiser-backed content. Furthermore, as AI-generated summaries and predictive tools become more common, users may rely less on exploring the wider web.
This consolidation of attention could eventually narrow the range of voices and viewpoints that users encounter online.
