This momentum is consistent with broader market trends. Advertising spending in India, currently around 0.4% of GDP, is expected to rise to nearly 0.5% by 2029, according to Bain & Company’s report ‘Advertising in the Digital Age in India and the World’.
India’s advertising sector is expected to be valued at $16 billion to $18 billion in 2024, growing at an average annual rate of 10% to 15%, outpacing the global average. The report added that digital advertising already accounts for 50-60% of total spending and is expected to nearly double to $17 billion to $19 billion by 2029.
SMBs and D2C brands will play an increasingly central role, with their share of digital ad spend rising from 37% in 2024 to 40%-42% by 2029.
With this in mind, Amazon believes that its AI-powered creative tools can help bring millions of small sellers to video-driven marketing. Video remains one of the most effective formats for influencing shopper behavior, but many small businesses still find it expensive and complex to produce. New tools allow advertisers to generate videos in minutes by simply uploading a product image, existing clip, or selecting a product detail page. The system generates six high-motion videos with music, text, and transitions based on Amazon’s retail and audience insights. “We want to expand the base of advertisers who can serve video ads, and that’s exactly what we’re here for,” said Kabir Bedi, Product Lead, Creative Experiences, Generative AI, Amazon Ads. “For advertisers who have never tried video advertising before, this is a zero-to-one moment. This tool allows them to run video ads across their entire catalog.”
Bedi said the goal is to remove long-standing barriers. “Creating videos is expensive, time-consuming, and requires expertise. Our goal is to democratize video advertising and make it easy for advertisers of all sizes to bring their products to life.”
Cultural relevance is built into the system. “Produce naturally has a local flavor that feels relevant to Indian shoppers,” Bedi said. Early examples featured Indian models and familiar settings, which advertisers welcomed. “They appreciate the highly localized content this tool produces.”
The pilot showed strong traction among small sellers. “With one click, you can choose from six videos in three to five minutes,” Bedi said.
Advertisers can upload their own videos, edit headlines, add logos, and change scenes. “We don’t put a limit on the number of videos we can generate; we want advertisers to be as flexible as possible.”
The tool is becoming central to Amazon’s global AI strategy. Over 60% of the products promoted with Video Generator have never been promoted with video on Amazon before. “This lowers the barrier to entry for them,” Bedi said.
This feature is free and currently supports English. Indian languages may be added later. “This is the first day of using AI for video creation for advertisers in India,” Bedi said.
With video now key to product discovery, Amazon expects broader adoption to drive growth for both sellers and the platform. “We expect advertisers to drive sales, target new shoppers and expand into new geographies,” Bedi said.
