‘Brands will continue to boost ad spend on ecomm platforms’
India such as Amazon and Flipkart to leverage their growing user base and sales-driving capabilities, said Samantha Bukowski, global head of ecommerce, GroupM Nexus.
The government’s Open Network for Digital Commerce (ONDC) will also give a fillip to ad spending on ecommerce platforms, which is forecast to have crossed $1 billion, she said. “I think that’s a fair estimate,” Bukowski said.
“Growth in the ecommerce user base and adoption of ONDC will drive ad spending on ecommerce platforms in India.”
As per industry estimates, ad spending on ecommerce platforms in India is expanding at a healthy double-digit rate.
Globally, GroupM has forecast that retail media will grow 10% to reach $126 billion this year.
The media agency defines retail media as including ad revenue from last-mile delivery services. “It's matured quite a bit, but I think the growth is still strong considering how high the base has gotten,” she added.
Bukowski also said that brand advertising on ecommerce platforms should not just be viewed as a cost but also as an investment considering the value that they deliver.
Advertising is generally considered a cost item by most companies.
“I think the ad spends on ecommerce is a bit of both (cost and investment). There’s the reality that it is a cost, but I think it all boils down to the measurement.
Everything about commerce is that it should be highly accountable,” she added. Bukowski, however, emphasised that ecommerce platforms need to share more data and insights with clients and agencies, which will unlock more value for these platforms.
“Insights, accountability, and measurement are a huge part of what we expect the ecommerce platforms to deliver.
