Amazon, Flipkart generate Rs 8,705 crore ad revenue in FY23

economictimes.indiatimes.com:

Ecommerce giants Amazon and Flipkart's cumulative ad revenue rose 39% to Rs 8,705 crore in the fiscal year through March 2023, as advertisers across categories used the platforms amid growth in their user base, as per data filed by the companies with the Registrar of Companies (RoC).

In FY23, Amazon Seller Services, the marketplace arm of Amazon, recorded 29% growth in ad revenue at Rs 5,380 crore, according to the RoC filings sourced from business intelligence platform Tofler. For Flipkart Internet, the marketplace arm of Flipkart, revenue from this segment rose 60% to Rs 3,325 crore.

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In FY22, the two companies together had generated Rs 6,256 crore in ad revenue: Rs 4,171 crore by Amazon Seller Services and Rs 2,085 crore by Flipkart Internet.

Also read | Amazon seller services net loss widens 33% in FY23

According to a Bain & Co report, India has an estimated 230–250 million annual transacting online shoppers, with the ecommerce market estimated to reach $57–60 billion in 2023. A Magna Global report said the digital ad revenue in India was expected to increase by 13.8% to Rs 56,703 crore in 2024.

Both Amazon and Flipkart own ad-tech platforms — Amazon Ads and Flipkart Ads — which help brands reach their target audiences cost-effectively, say experts.

Kurate Digital Consulting senior partner Uday Sodhi said brands are increasing their ad spends on ecommerce platforms as they allow a lot more effective targeting based on category,