Flipkart is pouring serious money into Ads, growing it at 50% month-on-month
BI India BureauAug 11, 2016, 08.35 PM
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Flipkart has seen renewed focus on its ads platform since Binny Bansal took over, and it seems to work. A senior Flipkart official privy to the latest developments claims its advertising arm has been growing exponentially since the previously quoted figure of $1 million in revenue a month.
“A million was long back. Around 25% sellers are currently onboard, and we’re growing at around 50% month-on-month”, he said.
While the media discourse around advertisement platforms of Snapdeal and Flipkart has been around their desperation to raise additional revenues in tough times, the official claimed the foundational work was already in place from long back.
“The basic work for Flipkart ads in terms of product development was being done previously. We’re only taking our finished products to the market now”, he claims.
According to a report by US-based advertising firm GroupM, digital ad spending in India is expected to be worth Rs.6,525 crores in 2016, and ad campaigns would emerge as a lucrative platform for revenue generation and as product discovery platforms for Indian e-commerce companies.