Advertisements get cash counters ringing at quick commerce and food delivery companies

economictimes.indiatimes.com:

Zepto, or the delivery partner’s icon on Swiggy’s order tracking page change into a pack of Oreo cookies.

Advertising is quickly becoming an important way for platforms like Swiggy, Zomato, Blinkit and Zepto to bump up their overall revenue, industry executives and advertisers told ET, while the diversity of brands advertising on these platforms is also expanding.

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About 10-12% of revenues for food-delivery companies come from advertising, people in the know said. Swiggy is currently at an annualised run rate of Rs 1,000 crore in advertising revenue, and is likely to bump that target up to Rs 2,000 crore next year, an executive added.

For food-delivery and quick-commerce firms alike, advertising revenue often offers the highest margins of between 90% and 95%, executives in the industry said.

Further, along with the introduction of flat, per order fees levied on users, expanding ad monetisation opportunities on their apps is increasingly becoming a lever for these platforms to improve their take rates, or the percentage of money they earn on every order.

This particularly assumes significance as platforms, particularly those engaged in food-delivery, are finding it increasingly difficult to increase commissions that they charge restaurants without attracting their ire.


Executives in the space look at advertising on apps as primarily two processes – sales driven or tech driven. Sales driven ads emanate from conventional placement properties such as branding on the homepage or the