E-commerce platforms to offer $8 billion market for digital ads

E-commerce platforms are now the fastest growing medium for digital ads in India, with a $6-8 billion opportunity by 2030, according to a new report.

The growth in product e-commerce user base is expected to be faster than search and social media platforms, with 300-350 million new online shoppers from tier 2 markets expected by 2030.

India’s digital ads market is expected to touch $35 billion in the same time-period and e-commerce platforms will be one of the biggest contributors enabling this upward spiral, according to homegrown strategy consulting firm Redseer.

The total advertising market in India stood at $11 billion in 2021, out of which 37 per cent comprised the digital ads market.

“The fact that millennials and Gen Z spend so much time on digital platforms are helping in the growth of the adtech market. This is likely to continue as more people use websites, apps, and social media to engage with each other,” said Sanjay Kothari, Associate Partner, A Redseer Strategy Consultants.

The contribution of e-commerce platforms to the adtech industry has rapidly increased from 15 per cent to 20 per cent in the last two years, and will contribute between 20-25 per cent of the market share.

Product e-commerce driven ads market is dominated by online marketplaces Flipkart and Amazon with 75 per cent share.

The overall advertising market, which includes traditional and digital ads, is poised to touch $45-50 billion by 2030, out of which a staggering 70-75 per cent will comprise digital ads.

A drastic increase in digital consumption as well as digital penetration in Tier-2 cities are the primary growth drivers responsible for the spike in India’s digital advertising ecosystem.

“Additionally, an increase in GDP per capita and the rise of D2C (direct to consumer) challenger brands are the other key enablers of this growth,” the report noted.

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E-commerce platforms are now the fastest growing medium for digital ads in India, with a $6-8 billion opportunity by 2030, according to a new report.

The growth in product e-commerce user base is expected to be faster than search and social media platforms, with 300-350 million new online shoppers from tier 2 markets expected by 2030.

India’s digital ads market is expected to touch $35 billion in the same time-period and e-commerce platforms will be one of the biggest contributors enabling this upward spiral, according to homegrown strategy consulting firm Redseer.

The total advertising market in India stood at $11 billion in 2021, out of which 37 per cent comprised the digital ads market.

“The fact that millennials and Gen Z spend so much time on digital platforms are helping in the growth of the adtech market. This is likely to continue as more people use websites, apps, and social media to engage with each other,” said Sanjay Kothari, Associate Partner, A Redseer Strategy Consultants.

The contribution of e-commerce platforms to the adtech industry has rapidly increased from 15 per cent to 20 per cent in the last two years, and will contribute between 20-25 per cent of the market share.

Product e-commerce driven ads market is dominated by online marketplaces Flipkart and Amazon with 75 per cent share.

The overall advertising market, which includes traditional and digital ads, is poised to touch $45-50 billion by 2030, out of which a staggering 70-75 per cent will comprise digital ads.

A drastic increase in digital consumption as well as digital penetration in Tier-2 cities are the primary growth drivers responsible for the spike in India’s digital advertising ecosystem.

“Additionally, an increase in GDP per capita and the rise of D2C (direct to consumer) challenger brands are the other key enablers of this growth,” the report noted.

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