Retail Media’s Rise: Zepto, Blinkit, and E-Commerce Ad Revenue Boom

Zepto, a leader in quick commerce, has crossed ₹1,000 crore in annualised advertising revenue, generating ₹83 crore per month, as per CEO Aadit Palicha's LinkedIn post. This milestone underscores the growing role of retail media advertising in India’s evolving digital landscape.

Retail Media’s Meteoric Growth

• Statista Report: India’s online retail advertising revenue exceeded $1 billion (~₹80,470 crore) in FY 2023—doubling since FY 2021.
• GroupM 2024 Forecast: Retail media remains the fastest-growing digital segment, with global growth projected at 17.5% in 2024 and 13.5% in 2025.

Zepto’s Advertising Journey

• Launched its ad business less than three years ago.
• Recently introduced Jarvis, an in-house ad platform enabling small and large brands to drive brand salienceand sales through optimized campaigns targeting Zepto users.

Quick Commerce Advertising Surge

Other players in the quick commerce space are also capitalizing on advertising:

1. Blinkit:

   • Achieved nearly ₹400 crore in ad revenue for FY 2023-24, a fourfold jump.
   • Expected to surpass ₹1,000 crore this fiscal year.

2. Swiggy:

   • Plans to scale ad revenue using enhanced advertising tools.
   • Offers customized campaigns supported by advanced analytics, as revealed in its IPO prospectus.

E-Commerce Giants Dominate Advertising

1. Amazon Seller Services:

   • Reported ₹6,649 crore in ad revenue for FY 2023-24, a 24% growth from the previous fiscal year.

2. Flipkart Internet:

   • Reached ₹4,972 crore, a 50% increase from FY 2022-23.

Changing Marketing Dynamics

Brands are investing heavily in retail media advertising:

• BN Group, an edible oil company, allocates 20% of its marketing budget to quick commerce platforms.
• HRX by Hrithik Roshan dedicates 60-70% to retail media, primarily with Myntra.

New Frontiers in Digital Advertising

Retail media’s success is mirrored by other platforms exploring ad revenue:

• Uber Ads:

  • Launched its ads division in 2022.
  • Achieved a $1 billion annual revenue run rate globally by August 2024.

• Interactive Avenues Insight:

  • Quick commerce, food delivery, and e-commerce platforms are not just sales channels but daily engagement touchpoints. Their uncluttered nature offers prime advertising real estate during mindful user moments.

Key Takeaway

As digital and quick commerce platforms continue to evolve into lucrative advertising ecosystems, brands and platforms alike are set to benefit from the unprecedented boom in retail media advertising, reshaping the future of digital marketing.