Meta is significantly investing in the Indian e-commerce sector by introducing new AI-powered advertising technologies and omnichannel capabilities. These tools aim to empower businesses, especially those with physical stores, to enhance their online presence and cater to the evolving needs of Indian consumers. This move comes as India's e-commerce landscape experiences rapid growth, particularly in tier-2 and tier-3 cities, fueled by quick commerce and increasing digital access.
The core of Meta's new offerings lies in its Omnichannel Ads, designed to bridge the gap between online discovery and offline purchasing. These ads direct consumers to nearby stores with in-stock products and highlight available discounts, incentivizing store visits. Early testing of Omnichannel Ads has yielded promising results, with advertisers experiencing a 15% reduction in cost per acquisition (CPA) and a 12% increase in return on ad spend (ROAS) compared to traditional campaigns. Taneira, an apparel brand under the Tata Group, reported a 3.5x higher purchase conversion rate and a 4.3x higher ROAS using Meta's omnichannel ads.
Meta is also enhancing its Advantage+ Catalog Ads with a new optimization feature. This allows advertisers to showcase specific products while the system intelligently suggests other relevant items based on consumer interests. Early tests have demonstrated a 14% increase in ROAS using this feature. Furthermore, Meta plans to integrate Partnership Ads with AI-powered Advantage+ catalog ads, allowing businesses to collaborate with creators and other brands to reach wider audiences. With India boasting the world's largest community of Instagram creators, Partnership Ads have already gained significant traction, with over 4,000 Indian advertisers currently utilizing them. Zepto, a quick commerce startup, leveraged Partnership Ads to amplify its 10-minute delivery proposition, resulting in an 18% lower customer acquisition cost and a 33% higher click-through rate compared to standard strategies.
Recognizing the potential of Generative AI, Meta is incorporating it into its advertising tools. These tools include virtual try-ons, background generation for product images, and AI-powered copywriting. For example, advertisers can now use background generation in Catalog Ads and experiment with more personalized text generation. 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.
These initiatives were unveiled at the Meta Marketing Summit – E-commerce Edition in Mumbai and Bengaluru, bringing together marketing leaders to discuss emerging trends in India's e-commerce sector. Meghna Apparao, Director of E-commerce and Retail at Meta India, emphasized the material shift in India's e-commerce landscape, driven by offline retail brands expanding online, the rapid growth of quick commerce, and the acceleration of online shopping in tier-2 and tier-3 markets. She stated that Meta's continued focus on innovative ad tools will be pivotal for the sector's growth, enabling brands to create impactful shopping experiences and deliver on business outcomes.
By leveraging AI and omnichannel strategies, Meta aims to empower Indian businesses to thrive in the evolving e-commerce landscape, connect with a wider customer base, and drive significant growth.
