Flipkart, Amazon Savour Ad Dollars; Google, Meta Under Threat?

The Indian digital advertising landscape is witnessing a pivotal shift as ecommerce giants Flipkart and Amazon make significant strides into a space long dominated by Google and Meta.

These tech and ecommerce leaders collectively reported over Rs 60,000 crore in ad revenue for the financial year 2023-24—a solid 9 per cent jump from the previous year, according to Registrar of Companies filings.

Notably, while Google and Meta continue to hold a formidable lead, the surge in advertising revenues from Amazon and Flipkart marks a shift in the competitive dynamics of India’s digital advertising ecosystem.

The rising ad revenues of Amazon and Flipkart indicate a burgeoning trend: ecommerce platforms aren’t merely shopping destinations; they are becoming critical players in the advertising ecosystem. Flipkart’s advertising arm, Flipkart Internet, recorded close to Rs 5,000 crore in ad revenue, while Amazon Seller Services reported Rs 5,380 crore in FY23 and is expected to maintain robust ad earnings in the current year. Together, these numbers underscore the growing appeal of ecommerce platforms as advertising hubs, providing brands with direct access to engaged, purchase-ready audiences.

With the digital advertising market growing rapidly, driven by increased smartphone penetration, wider internet access, and shifting consumer behaviours, the allure of ecommerce platforms for advertisers is unmistakable. The ability of Amazon and Flipkart to offer higher returns on investment (RoI) is a significant draw for brands.

Unlike Google and Meta, which primarily capture users in their search and social media moments, ecommerce platforms engage consumers at the point of purchase, making their ads especially potent for driving conversions. This retail media model allows advertisers to capitalise on high-intent audiences and helps ecommerce platforms diversify revenue streams in an increasingly competitive market.

Within this context, the rise of retail media and commerce media has become a defining theme in digital advertising. Retail media—ad placements on retail websites and apps—is gaining momentum globally, and India is no exception. With players like Amazon and Flipkart leading the charge, brands are recognising the value of reaching consumers directly at the digital storefront. Commerce media, a broader concept that spans across ecommerce sites, apps, and connected digital experiences, is also on the rise, transforming how brands interact with consumers online. By harnessing commerce media solutions, advertisers can build personalised, data-driven ad campaigns that resonate with shoppers’ immediate needs and preferences, enhancing engagement and sales.

As digital ad spending continues to expand in India, the quick commerce sector also holds promise, albeit from a smaller base. Quick commerce platforms are expected to attract between Rs 2,500 crore and Rs 3,000 crore in annual ad revenue, according to industry estimates. This emerging trend aligns with broader growth in digital advertising as online shopping and consumption trends deepen across the country.

In this evolving landscape, Google and Meta have remained resilient, with Google India reporting an 11 per cent increase in gross ad revenue to Rs 31,221 crore in FY24, while Meta India saw its advertising revenue grow to Rs 22,730 crore. However, the rapid rise of Amazon and Flipkart signals an intensifying competition that could reshape the digital advertising terrain. As these ecommerce platforms refine their ad offerings, their role in the market is likely to grow, challenging the conventional supremacy of search and social platforms and offering brands diverse, high-impact advertising alternatives tailored to the Indian consumer.