Flipkart Ads is a division of Flipkart that was formed after the latter acquired the international mobile advertising platform Adiquity a few years ago. Flipkart Ads now seeks to be a $100 million business by the end of financial year 2018.
The digital platform currently offers solutions to sellers on Flipkart but intends to expand into third party solutions and digital products. It has decided 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.
Prakash Sikaria, senior director of monetisation and new initiatives at Flipkart and head of Flipkart Ads said,
In April 2016, we were focused 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
If you’re unaware, Flipkart is planning to start selling financial services and products in a few months is also looking to enter the digital product space by selling subscriptions and credit-cards. Sikaria 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 heshe 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
The digital marketing space in India is one that has grown substantially over the past few years. In 2016, it was valued to be Rs. 11, 645 crore according to Forrester Research. Facebook and Google then dominated the space.
Today, users have started using e-commerce apps for searching consumer durables, phones, and fashion instead of Google. Because of this, it is lucrative for advertisers to place their ads on online marketplaces. This is a great way for online retailers to increase their revenue. Amazon and Alibaba are examples of two online retailers who are currently earning a large portion of their revenue from advertising.
With plans to launch grocery and FMCG products, Flipkart Ads is on the lookout for a share in these advertisements. According to Sikaria, the advertising business grew four times between March 2016 and 2017 and is anticipated to have a similar surge in growth this year. He said,
FMCG companies pay for shelf space and on digital it will be a different play for visibility by the brands. We will also solve sampling at scale for new launches for our FMCG partners. We plan to launch these initiatives ahead of the Big Billion Days sale, which will act as a booster
