Amazon and Flipkart, two of India’s e-commerce behemoths, saw a remarkable 39% increase in their combined advertising revenue, reaching ₹8,705 crore. Advertisers leveraging the growing user base of these platforms have driven this surge, according to the data filed with the Registrar of Companies (RoC).

What Happened? Amazon Seller Services, Amazon’s marketplace arm, reported a 29% rise in ad revenue, amounting to ₹5,380 crore. Flipkart Internet, Flipkart’s marketplace division, experienced a 60% increase, earning ₹3,325 crore in ad revenue. The previous fiscal year saw these companies generate a total of ₹6,256 crore in ad revenue.

India’s booming e-commerce market, estimated to hit $57–60 billion in 2023, is attracting a diverse range of online shoppers, now estimated between 230–250 million. Digital ad revenue in the country is expected to grow further, reaching ₹56,703 crore in 2024.

See also: How To Check Aik Pipes And Polymers IPO Allotment Status

Ad-tech rejig: Both Amazon and Flipkart have developed their ad-tech platforms, Amazon Ads and Flipkart Ads, offering cost-effective targeting options for brands. Experts note that these platforms enable more effective targeting based on various factors, making them attractive for advertisers seeking better returns on investment.

Industry experts predict a shift in advertising strategies, with investments moving from Amazon and Flipkart to quick-commerce platforms in 2024, reflecting the industry’s responsiveness to changing consumer trends. This shift indicates a broader trend of advertising dollars moving from social channels to other platforms like OTT and e-commerce, offering a more diverse and effective mix for brand promotion and performance marketing.

Read Next: Most Anticipated IPOs Of 2024 In India: A Guide To Next Year's Public Market Debuts