Meta Launches New AI-Powered Ad Tools to Boost Growth for India's E-commerce and Retail Sector Meta is also integrating Partnership Ads with Advantage+ catalog ads, offering advertisers the ability to combine influencer-led content with AI-driven personalisation. Companies like Zepto have leveraged this approach, reporting an 18 per cent deduction in customer acquisition cost and a 33 per cent increase in click-through rate
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Meta has rolled out a suite of new ad tools aimed at helping e-commerce and retail businesses improve performance, boost reach, and unlock efficiency through AI. As India's digital retail landscape expands—fueled by quick commerce and increased online shopping in tier-2 and tier-3 towns—these innovations are positioned to support brands looking to engage consumers across multiple channels.
Among the updates is the expansion of omnichannel ads, which allow advertisers to guide customers to nearby stores with real-time inventory and promotions. Early tests suggest significant improvements in efficiency, with a 15 per cent drop in cost per acquisition and a 12 per cent increase in return on ad spend. Brands like apparel label Taneira have already reported strong results—seeing over 3.5x higher conversions and a 4.3x boost in Return on Ad Spend (ROAS) compared to standard purchase-optimised campaigns.
Meta is also integrating Partnership Ads with Advantage+ catalog ads, offering advertisers the ability to combine influencer-led content with AI-driven personalisation. Companies like Zepto have leveraged this approach, reporting an 18 per cent deduction in customer acquisition cost and a 33 per cent increase in click-through rate.
"We used the authentic voice of creators to highlight our 10-minute delivery USP for which we leveraged Partnership Ads. The experiment resulted in an 18 per cent lower CAC and a 33 per cent higher CTR when combining Partnership Ads with BAU strategies compared to BAU alone," Said Pawrush Elavia, Head of Growth at Zepto.
To further improve merchandising, Meta is introducing AI enhancements to its Advantage+ catalog ads, enabling the system to display complementary products. Early trials show an average 14 per cent increase in ROAS. In parallel, Meta is exploring generative AI features, including tools that generate product backgrounds and, in future iterations, virtual try-on capabilities using AI-modeled clothing.
Big Basket, an early adopter of these generative tools, reported a 2.7 per cent improvement in CTR and a 3.4 per cent reduction in cost per install through AI-enhanced catalog ads. These results underscore the growing role of AI in shaping how retail brands connect with consumers, enhance shopping experiences, and optimise ad performance.
With India emerging as a key innovation hub—home to the largest Instagram creator base globally—Meta's latest tools are expected to play a pivotal role in driving the next phase of growth for digital-first and omnichannel brands.
