Online advertising in India is on the rise, benefiting Flipkart, Snapdeal and other platforms

As online retail in India continues to grow, e-commerce platforms such as Amazon , Flipkart , Paytm and Snapdeal have become major advertising channels. According to Statista, the Indian e-commerce market was worth $64 billion in 2020 and is expected to reach $200 billion in 2027.

The growth of the e-commerce market indicates that consumer behavior is changing and online spending is increasing. The pandemic has boosted the development of e-commerce and also influenced major brands to adjust their retail strategies to reach end consumers .

Changes in consumer behavior have also had an impact on the Indian digital advertising market, with the Indian Digital Advertising 2021 Report showing that advertising spending on e-commerce platforms reached Rs 47 billion by the end of 2020. Based on the current trajectory , the report predicts that advertising spending on these platforms is expected to grow at a compound annual growth rate of 40%.

According to a 2021 FICCI-EY report, advertising revenue on e-commerce platforms exceeded Rs 3.5 billion in 2020, accounting for 12% of the total digital advertising, and more and more brands are using online platforms for promotion .

It is reported that advertising expenditures on e-commerce platforms cover various forms such as display, video, social media, and paid search .

Recently, Flipkart partnered with MediaMath to launch a self-service DSP focused on commerce. The partnership will support brands’ advertising goals through a self-service platform and manage it end-to-end in line with Flipkart’s larger growth strategy for its ad technology business.

A spokesperson for S napdeal said that the integration of online advertising and transaction processes is a major driving force for e-commerce advertising. In addition, the convenience and value provided to users by clicking on ads and learning more about products , easily accessing product videos and user reviews , and seamless access also make e-commerce advertising one of the choices for advertisers .

The spokesperson said: “ The rapid rise of value commerce is one of the reasons why e-commerce advertising is becoming more popular . As India’s leading value commerce platform, Snapdeal has millions of products, and its focus is on quality and reasonable prices rather than brand awareness. Advertising on the platform can attract more users to the products of each store and help increase the order rate . Compared with expensive brand building campaigns , such a promotion method is obviously more appropriate. ”

India

Snapdeal