Data filed with the Registrar of Companies shows, the cumulative ad revenue of e-commerce giants Amazon and Flipkart rose by 39 per cent to Rs 8,705 crore in the fiscal year through March 2023.
The ad revenue of Amazon Seller Services grew by 29 per cent to Rs 5,380 crore, according to the RoC filings sourced from business intelligence platform Tofler. Ad revenue of Flipkart Internet, the marketplace arm of Flipkart, rose by 60 per cent to Rs 3,325 crore.
India’s digital ad revenue is is expected to increase by 13.8 per cent to Rs 56,703 crore in 2024, according to a Magna Global
Uday Sodhi, Senior Partner, Kurate Digital Consulting notes, increasing ad spends on ecommerce platforms allows brands to target their audience more effectively on the basis of category, brand and user behavior.
According to an Amazon spokesperson, customers’ fluid movement between browsing, streaming and purchasing across channels and devices, makes the digital landscape more complex.
Shashank Rathore, Vice-President – E-commerce, Interactive Avenues, the digital arm of IPG Mediabrands India, adds ecommerce as an ad platform now rivals performance marketing giants like Google and Facebook.
Hareesh Tibrewala, CEO, Mirum India, avers, ecommerce portals are proving as a valuable touch point for brands, encouraging them to increase their investments in such platforms. In future, ad revenues are like to shift from social to other channels like e-commerce and OTT, he adds.
Vishal Chinchankar, CEO, Madison Digital adds, brands on e-commerce platforms benefit from a sophisticated mix of creativity and data
