Google says irrelevant ads reduced by 40% via Gemini

Search giant Google said the integration of its multimodal AI models, Gemini, has led to a 40% reduction in irrelevant advertisements on its platforms, as improved query understanding helps match ads more closely with user intent.

Speaking at a roundtable on Thursday, Dan Taylor, Vice President, Global Ads at Google, said the company has been steadily deploying Gemini-driven improvements to better interpret complex search queries, resulting in more relevant advertising and stronger outcomes for brands.

“We have been making Gemini-based improvements to query understanding at a rate of almost one launch per month over the last two years. As the models improve and our ability to deploy them improves, ad quality continues to get better,” Taylor said.

According to Taylor, 2025 saw a threefold increase in Gemini-generated creative assets created by advertisers using Google’s AI-powered ad tools.

Google also highlighted the impact of its AI-led ad solutions on Indian brands. Features such as AI Max and Performance Max (PMax) have helped companies like OYO and Policybazaar scale campaigns and improve marketing efficiency.

Policybazaar, for instance, recorded a 28% rise in health insurance sales while reducing cost per sale by 23% after adopting AI Max, which interprets natural language search queries to improve ad targeting.

Similarly, OYO achieved 50% higher return on ad spend (ROAS) and 25% lower cost per acquisition by combining existing search campaigns with Google’s Performance Max campaigns.

Taylor also pointed to a shift in consumer behaviour, noting that 83% of shoppers in India using Google Search said they were open to trying new brands or products.

Beyond advertising, Google is also investing heavily in agentic AI for commerce, where AI agents can autonomously assist consumers in discovering and purchasing products.

“Our goal with agentic commerce is two-fold: first, to remove the grunt work of shopping so consumers can focus on the fun parts; and second, to work hand-in-hand with the industry to build the foundations needed to make agentic commerce seamless and secure across the web,” Taylor said.

The push comes as Google continues to strengthen its advertising business. The company reported $82.28 billion in advertising revenue, marking a 13.5% year-on-year increase.

First Published on March 12, 2026, 18:41:02 IST