Digital Advertising in India
Retail Media and Advertising on Shopping Platforms
Amazon, Flipkart and quick commerce apps earn large revenue by selling ad space next to products, since shoppers are close to buying.
Ads where people shop.
Sponsored listings
Brands pay to appear higher in product search.
Why it works
Ads reach shoppers with buying intent, and sales can be measured.
Margins
Ad revenue has become vital to the profitability of e-commerce platforms.
Effect
Sellers must pay to be visible, raising their costs.
A sponsored product
A biscuit brand pays to be the first result for 'tea biscuits'.
Ignoring ad costs when judging a seller's margins
Advertising takes a big share.
Key takeaways
- Shopping platforms sell ad space.
- Intent makes them effective.
- Ads support platform profits.
- Sellers' costs rise.
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