Flipkart Ads is a digital marketing division of the online marketplace. It was set up a few year ago post acquiring the international mobile advertising platform Adiquity in 2016. The digital ad platform, which offers solutions for sellers on its online marketplace, now aims to generate $100-million revenue by end of the financial year 2018. The company has also reported fourfold business growth in the year ended March 2017.
The company further plans to tie up with Google and YouTube to expand its target audience across digital channels and hopes to generate more revenue by selling bundled digital products.
“In April 2016, we were focussed on growing our business with brands and have now opened up for brands with which we have an indirect relationship. We are working with the BFSI industry and telcos to bundle products with purchases, monetising the intent to buy. At the end of the day we are the largest online transaction platform,” said Prakash Sikaria, Senior Director of Monetisation and New Initiatives at Flipkart and Head of Flipkart Ads.
According to the company’s plans to start selling financial services and products in a few months are also looking to enter the digital product space by selling subscriptions and credit-cards. Sikaria further added, “We will also launch extended warranties and device insurance, among others. Also, we have data on consumer credit profile, buying profile and the card he/she uses. During say a sale event when we are running promotions with bank partners, we can capture the intent of a customer to sell a particular bank’s card as well. Going ahead, you could buy a Netflix subscription on Flipkart”
Currently, the ad market is largely dominated by Facebook and Google. The size of the digital marketing space in India was estimated to be Rs 11,645 crore in 2016 by the research firm Forrester Research.
Today, consumer’s search for consumer durables, phones and fashion, advertising is moving away from Google to the e-commerce apps. By taking such lead, online retailers can increase their revenue by placing the relevant ads to their marketplace. Amazon and Alibaba are examples of two online retailers who are currently earning a large portion of their revenue from advertising.
Consumer durables account for 60% of the digital advertising space in India and with the launch of grocery and FMCG products on the cards, Flipkart Ads is looking to corner a share of FMCG advertisements.