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Rise of Commerce Advertising in India

24 June 2016

India has emerged as the fastest growing ad market among all major markets of the world. Group M, a media-planning and buying agency estimates that digital advertising will account for 12.7% of all ad spending in 2016 and will grow at 15.5% to Rs.57,486 crore with digital advertising expanding at the fastest pace of 47.5%, making digital the fastest growing platform.


It is expected that E-commerce in India will grow from today’s’ $16 billion to a $50-$70 billion market by 2020. As per one of the leading E-commerce sites in India, e-commerce players have more daily visitors than daily readership of leading newspapers.


India’s ecosystem is dominated by a young population making a mobile-first communication approach a great way forward. Household decision-makers are also going online, along with local kiranas, thereby making a strong case for the potential of digital commerce advertising. Hence, brands need to understand the consumer’s behaviour qualitatively and be present in the important moments of the buyer’s journey. This makes a collaborative, new-age and agile marketing approach key. Flipkart, a pioneer in commerce advertising has access to multiple data points that allow brands to connect with users qualitatively using multiple ad formats.


Commerce advertising has a host of benefits, for instance, full funnel measurement which employs technology that provides details of the entire consumer journey – from awareness to purchase. Advance reporting helps brands understand how its positioning gets indexed in the consumer’s mind through data such as the share of audiences that have just clicked, visited, bought items, etc.  It also helps brands optimize their performance as audiences can now get exact options basis their input in the category, thereby seeding in the intent to make purchases. This induces users to make impulsive purchase decisions. Flipkart leverages cutting edge technology to help brands grow by leaps and bounds, attain their business objectives and meet their targets by helping brands reach their relevant audience.


This quote by Anusha Shetty, chief executive at Autumn Worldwide, a Bengaluru-based social media marketing agency, makes a pertinent point when she says, “In a young country like India media habits are shifting towards digital and social. 2016 promises to be fabulous. Brands will question the role of tactical usage of digital media and it’ll become more strategic. It’ll continue to be an integrated world with social first campaigns getting more dominant”. Garikipati said in an interview, “Advertisers care most about three aspects: reach, shaping the business outcome, and measuring the efficacy of the ads platform. If you address all these three in an unambiguous way, you will be a clear winner. In particular, the measurability of the efficacy of our platform gives us an edge over competing solutions. Many solutions create awareness and (purchase) consideration but after that you don’t know if and where the actual purchase happens. That’s not the case with us as commerce actually happens on Flipkart and Myntra”.

Flipkart is one of the few brands with a futuristic view to advertising. Flipkart has cutting edge technology and advertising together to help brands engage with audiences more meaningfully by employing multiple innovative ad formats. Flipkart also has over 75 million registered users that are high intent transacting consumers providing a wide reach to the right audiences. The user base is dominated by senior to mid-level professionals thereby giving brands access to the crème de la crème.


It’s time for brands to plan ahead and exploit the full potential of commerce advertising to increase ROIs on ad spends. The future seems promising.