Brands latch on to quick commerce advertising as business grows

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expects advertising revenue to touch ₹1,000 crore in the next 12 months. The company's advertising revenue has already hit ₹400 crore. “The advertising business is scaling rapidly and is growing at the rate of 150% year-on-year, driving up margins steadily," Zepto co-founder and chief executive officer Aadit Palicha said in an earlier interview with Mint.

Also Read: Flipkart's q-commerce entry weeks away, will take on Zepto, Blinkit, Instamart Typically, FMCG companies promote new products or push offers at large retailers as well as online platforms. They advertise on e-commerce platforms in the form of banner ads and run promos or offer discounts across Amazon, Flipkart, Big Basket, Nykaa or Zepto. Quick commerce platforms are gaining scale—at least in India’s top cities.

India’s quick-commerce market grew 77% in 2023 to $2.8 billion in gross merchandise value, accounting for 5% of India’s overall e-commerce market, according to consulting firm Redseer. GMV, a key metric in e-commerce, tracks the total value of all goods sold on a platform, excluding discounts and other expenses. Beauty products company Plum said its marketing expenses across e-commerce platforms, including quick commerce, are proportional to the size of the channels.

The company gets 20% of its e-commerce sales via quick commerce. “The overall economics with regard to how much we invest on any platform is pretty much the same. Since the primary motivation for shopping on quick commerce is not price, discounts are lower, so whatever money is saved on discounting tends to be ploughed back into marketing on the platform," said Shankar Prasad, founder & CEO of Plum.