In FY23, Amazon Seller Services, the marketplace arm of Amazon, recorded 29% growth in ad revenue at Rs 5,380 crore, according to the RoC filings sourced from business intelligence platform Tofler. For Flipkart Internet, the marketplace arm of Flipkart, revenue from this segment rose 60% to Rs 3,325 crore.
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In FY22, the two companies together had generated Rs 6,256 crore in ad revenue: Rs 4,171 crore by Amazon Seller Services and Rs 2,085 crore by Flipkart Internet.
Also read | Amazon seller services net loss widens 33% in FY23
According to a Bain & Co report, India has an estimated 230–250 million annual transacting online shoppers, with the ecommerce market estimated to reach $57–60 billion in 2023. A Magna Global report said the digital ad revenue in India was expected to increase by 13.8% to Rs 56,703 crore in 2024.
Both Amazon and Flipkart own ad-tech platforms — Amazon Ads and Flipkart Ads — which help brands reach their target audiences cost-effectively, say experts.
Discover the stories of your interest
Kurate Digital Consulting senior partner Uday Sodhi said brands are increasing their ad spends on ecommerce platforms as they allow a lot more effective targeting based on category, brand and user behaviour.”Ecommerce is growing at a healthy pace, and a lot of digital-first and traditional advertisers are spending heavily on these platforms. Both Amazon and Flipkart have become great platforms to convert users into buyers. The return on investment for brands is comparatively better than other platforms,” he said.
An Amazon spokesperson said the digital landscape has become complex as customers are moving fluidly between browsing, streaming, researching and purchasing across channels and devices.
“With hundreds of millions of worldwide active customer accounts, Amazon has a deep understanding of how shoppers engage with products and brands as they discover, browse, and purchase online. Advertising with Amazon Ads is helping businesses of all sizes and from all industries, regardless of whether they sell directly on Amazon or not, reach customers at every stage of their journey,” the spokesperson added.
Flipkart didn’t respond to queries till press time Thursday.
Shashank Rathore, vice-president – ecommerce at Interactive Avenues, the digital arm of IPG Mediabrands India, said ecommerce as an ad platform now rivals performance marketing giants like Google and Facebook.
“Looking ahead to 2024, a significant disruption is expected with FMCG, dairy, grocery and F&B investments shifting from Amazon and Flipkart to quick-commerce platforms. This strategic realignment reflects the industry’s adaptability to evolving consumer trends,” he added.
Mirum India joint chief executive Hareesh Tibrewala said marketplaces like Flipkart and Amazon also offer pure media solutions from a brand-building perspective. “Finally, in consumers’ lifecycle, an ecommerce portal represents a point of conversion and, hence, a valuable touch point for a brand. All this is contributing to increased media spend on ecommerce platforms,” he added.
Tibrewala foresees a shift of ad dollars from social channels to other channels like OTT and ecommerce.
Madison Digital CEO Vishal Chinchankar said: “Ecommerce advertising significantly levels the playing field compared to giants (Google and Meta), and the growth of ecommerce is not only on the back of giants but there is a huge headroom as the overall digital pie is increasing. A sophisticated mix of creativity and data works extremely well for brands on ecommerce platforms. In my mind, performance marketing is like a drip to the brands and their businesses; it’ll only increase.”
In FY23, Amazon Seller Services, the marketplace arm of Amazon, recorded 29% growth in ad revenue at Rs 5,380 crore, according to the RoC filings sourced from business intelligence platform Tofler. For Flipkart Internet, the marketplace arm of Flipkart, revenue from this segment rose 60% to Rs 3,325 crore.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Kozhikode | IIMK Senior Management Programme | Visit |
| IIT Delhi | IITD Certificate Programme in Data Science & Machine Learning | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
In FY22, the two companies together had generated Rs 6,256 crore in ad revenue: Rs 4,171 crore by Amazon Seller Services and Rs 2,085 crore by Flipkart Internet.
Also read | Amazon seller services net loss widens 33% in FY23
According to a Bain & Co report, India has an estimated 230–250 million annual transacting online shoppers, with the ecommerce market estimated to reach $57–60 billion in 2023. A Magna Global report said the digital ad revenue in India was expected to increase by 13.8% to Rs 56,703 crore in 2024.
Both Amazon and Flipkart own ad-tech platforms — Amazon Ads and Flipkart Ads — which help brands reach their target audiences cost-effectively, say experts.
Discover the stories of your interest
Kurate Digital Consulting senior partner Uday Sodhi said brands are increasing their ad spends on ecommerce platforms as they allow a lot more effective targeting based on category, brand and user behaviour.”Ecommerce is growing at a healthy pace, and a lot of digital-first and traditional advertisers are spending heavily on these platforms. Both Amazon and Flipkart have become great platforms to convert users into buyers. The return on investment for brands is comparatively better than other platforms,” he said.
An Amazon spokesperson said the digital landscape has become complex as customers are moving fluidly between browsing, streaming, researching and purchasing across channels and devices.
“With hundreds of millions of worldwide active customer accounts, Amazon has a deep understanding of how shoppers engage with products and brands as they discover, browse, and purchase online. Advertising with Amazon Ads is helping businesses of all sizes and from all industries, regardless of whether they sell directly on Amazon or not, reach customers at every stage of their journey,” the spokesperson added.
Flipkart didn’t respond to queries till press time Thursday.
Shashank Rathore, vice-president – ecommerce at Interactive Avenues, the digital arm of IPG Mediabrands India, said ecommerce as an ad platform now rivals performance marketing giants like Google and Facebook.
“Looking ahead to 2024, a significant disruption is expected with FMCG, dairy, grocery and F&B investments shifting from Amazon and Flipkart to quick-commerce platforms. This strategic realignment reflects the industry’s adaptability to evolving consumer trends,” he added.
Mirum India joint chief executive Hareesh Tibrewala said marketplaces like Flipkart and Amazon also offer pure media solutions from a brand-building perspective. “Finally, in consumers’ lifecycle, an ecommerce portal represents a point of conversion and, hence, a valuable touch point for a brand. All this is contributing to increased media spend on ecommerce platforms,” he added.
Tibrewala foresees a shift of ad dollars from social channels to other channels like OTT and ecommerce.
Madison Digital CEO Vishal Chinchankar said: “Ecommerce advertising significantly levels the playing field compared to giants (Google and Meta), and the growth of ecommerce is not only on the back of giants but there is a huge headroom as the overall digital pie is increasing. A sophisticated mix of creativity and data works extremely well for brands on ecommerce platforms. In my mind, performance marketing is like a drip to the brands and their businesses; it’ll only increase.”