Retail Media Surges: Zepto and Blinkit Lead Advertising Growth

Retail media has emerged as the fastest-growing segment in digital advertising, with quick commerce platforms and global giants reaping substantial rewards. Indian player Zepto recently surpassed ₹1,000 crore in annualised advertising revenue, while rival Blinkit saw a fourfold rise to ₹400 crore in FY 2023-24, with projections to hit ₹1,000 crore this fiscal year.

Globally, Amazon Seller Services and Flipkart Internet continue to dominate, reporting ad revenues of ₹6,649 croreand ₹4,972 crore, respectively, for FY 2023-24. Adding to the momentum, Uber revealed in August 2024 that its global advertising business achieved an annualised net revenue run rate (ARR) of $1 billion, further highlighting the global dominance of retail media.

Retail Media Growth: A Global Trend

According to GroupM’s 2024 Global Mid-Year Forecast, retail media is expected to grow by 17.5% globally in 2024, with an additional 13.5% growth rate forecasted for 2025. Locally, Statista reported that India's online retail market advertising revenue exceeded $1 billion (₹80,470 crore) in FY 2023, doubling since FY 2021.

The appeal of retail media lies in its ability to combine precise targeting with measurable impact, offering brands enhanced visibility, personalised communication, and invaluable insights into consumer preferences.

Quick Commerce and E-commerce Surge in Ad Revenue

Quick commerce platforms are increasingly leveraging retail media to generate additional revenue streams. While e-commerce giants like Amazon and Flipkart remain dominant, platforms like Zepto and Blinkit are carving a niche with speed and convenience.

• Zepto launched its Jarvis in-house ad platform in November 2024, enabling brands to enhance visibility and optimise campaigns tailored to Zepto’s user base.
• Blinkit introduced its Seller Hub programme in October 2024, offering brands sales insights and advertising tools akin to Amazon’s Fulfilled model.

These strategic innovations have helped platforms attract ad spend from brands eager to engage with highly mindful and daily active users.

The Rise of Retail Media Networks

For brands, retail media networks are an essential tool for standing out in crowded marketplaces. These platforms provide:

• Enhanced engagement with users during mindful moments.
• Uncluttered ad spaces, offering better placements compared to traditional digital advertising.
• Valuable consumer insights, aiding in targeted campaigns and driving sales growth.

Sahiba Sachdev, VP of media planning and buying at Interactive Avenues, likened user engagement on these platforms to gaming addiction, due to their high daily interaction levels.

Retail Media’s Future in Digital Advertising

The rapid adoption of retail media has shifted the balance of digital ad spending, with brands increasingly allocating budgets to e-commerce and quick commerce platforms. As Swiggy highlighted in its IPO prospectus, ad revenue is becoming a significant growth lever.

Moving forward, retail media will remain a game-changer for brands and advertising platforms alike, redefining digital advertising and driving unprecedented revenue growth in 2024 and beyond.