Meta introduces AI-driven Ad tools to boost India’s e-commerce

Meta's new Omnichannel Ads direct consumers to nearby stores with in-stock products and discounts, showing a 15% decrease in cost per acquisition and a 12% increase in return on ad spend during initial tests

Meta has rolled out a suite of innovative advertising tools aimed at propelling the growth of India’s rapidly expanding e-commerce and retail sectors. These new offerings, which include AI-powered catalog ads, creator-led campaigns, and omnichannel features, are designed to connect online shoppers with offline stores, fostering a more seamless shopping experience.

The launch of these tools coincides with a significant transformation in India’s e-commerce landscape, spurred by the rise of quick commerce and the increasing digital penetration in tier-2 and tier-3 cities. Meta leveraged this momentum by hosting its Meta Marketing Summit – E-commerce Edition in Mumbai and Bengaluru, where marketing leaders gathered to explore the future of online shopping.

Meghna Apparao, Director of E-commerce and Retail at Meta India, commented on the shift, stating, “E-commerce and retail are undergoing a significant transformation in India, with more offline retail brands moving online, quick commerce growing rapidly, and online shopping accelerating in smaller markets.”

At the core of Meta’s new offerings is its Omnichannel Ads, which guide consumers to nearby stores that have in-stock products and active discounts. Initial tests have proven successful, with campaigns using this format reporting a 15% reduction in cost per acquisition and a 12% increase in return on ad spend.

Meta Ads boost e-commerce results

Tata Group’s apparel brand, Taneira, was one of the first brands to pilot the omnichannel ads. Aishwarya Omprakash, Head of Marketing at Taneira, shared their results, noting, “We saw a 3.5x increase in purchase conversions and a 4.3x higher return on ad spend (ROAS) compared to campaigns focused solely on purchases. This highlights the value of a multi-touchpoint strategy.”

Another key feature is Partnership Ads, which was used by Zepto, a quick commerce startup, to enhance its 10-minute delivery service. “By leveraging the authentic voice of creators, we saw an 18% lower customer acquisition cost (CAC) and a 33% higher click-through rate (CTR) when combining Partnership Ads with our existing strategies,” said Pawrush Elavia, Head of Growth at Zepto.

Additionally, Meta introduced Advantage+ Catalog Ads, an optimization tool that highlights specific products and suggests related items, enhancing product discovery. Early tests of the feature have resulted in an average 14% increase in ROAS.

Meta leverages GenAI for Ads

Meta is also venturing into Generative AI tools, such as virtual try-ons, background generation for product images, and AI-powered copywriting. Anand Bhaskaran, Head of Digital Marketing at Big Basket, expressed enthusiasm for the GenAI-powered catalog ads, saying, “The results were fantastic, and we are confident this technology will continue driving efficiency in our business.”

Meta plans to introduce more Generative AI tools throughout the year, helping businesses enhance their ad performance and cater to a broader audience, especially in non-urban areas. This move underscores Meta’s commitment to staying ahead in the ever-evolving digital marketing landscape.