Meta Launches AI-Driven Ad Tools and Omnichannel Features to Boost E-Commerce in India

Meta has rolled out a new suite of AI-powered advertising tools tailored to supercharge the growth of India’s dynamic e-commerce and retail landscape. These include enhanced catalog ads, creator-led campaigns, and omnichannel ad formats that bridge the gap between digital and physical retail.

The launch aligns with the booming growth of digital shopping, especially in tier-2 and tier-3 cities, fueled by rising internet access and the rise of quick commerce platforms.

Meta Marketing Summit Highlights India’s Digital Shopping Momentum

To showcase these innovations, Meta hosted its ‘Meta Marketing Summit – E-commerce Edition’ in Mumbai and Bengaluru. The event brought together marketing leaders to explore the future of Indian retail and the evolving digital shopper journey.

“E-commerce and retail are undergoing a transformation in India,” said Meghna Apparao, Director of E-commerce and Retail at Meta India. “Offline brands are increasingly reaching customers online, quick commerce is surging, and digital adoption in smaller cities is expanding rapidly.”

Omnichannel Ads: Driving In-Store and Online Sales

At the core of Meta’s new ad features is Omnichannel Ads, designed to drive foot traffic to physical stores. These ads highlight nearby stores with in-stock inventory and current discounts. According to Meta, early test campaigns using omnichannel ads achieved a 15% lower cost per acquisition and a 12% increase in return on ad spend (ROAS).

Success Stories: Taneira and Zepto Lead the Way

Tata Group’s ethnic wear brand, Taneira, was one of the early adopters of Meta’s omnichannel ad format. The brand reported 3.5x higher purchase conversions and 4.3x higher ROAS compared to standard purchase-optimized campaigns.

“This multi-touchpoint approach showed tangible performance gains, and we plan to scale it in the coming year,” said Aishwarya Omprakash, Head of Marketing at Taneira.

Quick commerce startup Zepto also leveraged Meta’s Partnership Ads to promote its 10-minute delivery model using creator-driven content. The result? An 18% drop in customer acquisition cost (CAC) and a 33% rise in click-through rate (CTR) when Partnership Ads were combined with business-as-usual (BAU) strategies.

Smarter Catalog Ads with AI Optimisation

Meta’s Advantage+ Catalog Ads now include a new optimization feature that allows brands to highlight specific product types, such as spring jackets, while allowing the AI system to automatically promote complementary items like dresses or shoes. This approach led to an average 14% boost in ROAS during early testing.

Generative AI Tools: Shaping the Future of Digital Advertising

Meta is also experimenting with Generative AI (GenAI) capabilities to enhance product visuals and streamline content creation. Some of the AI tools being tested include:

• Virtual Try-Ons: Let customers visualize products on themselves.

• AI-Generated Backgrounds: Customize product imagery for campaigns.

• Automated Copywriting: Draft compelling product descriptions and ad text.

Retailers like Big Basket have already seen promising results. “We saw strong performance from GenAI-powered catalog ads, and we believe this technology will continue to increase ad efficiency,” said Anand Bhaskaran, Head of Digital Marketing at Big Basket.

Empowering Businesses in Emerging Markets

Meta plans to continue the rollout of AI-based tools throughout 2025 to help businesses cater to India’s evolving retail landscape. These innovations are particularly beneficial for brands reaching out to customers in semi-urban and rural markets, where digital shopping is witnessing exponential growth.