In the year 2015, ecommerce giant Flipkart pulled out all the stops to make advertising its biggest source of additional revenue. It appears that all the efforts paid off as the etailer’s monthly ad sales revenue has touched $1 million in less than a year.
Flipkart is now one of largest digital ads platforms in India
The online marketplace aspired to be the largest digital advertising platform in India in the next 3 to 5 years. Amazingly, the impressive $1 Million sales figure has put Flipkart in the most preferred platform for digital advertisement list sooner than anticipated.
Ravi Garikipati, Head of Advertising Platform at Flipkart explained how the company managed to reach this position. He shared, “Advertisers care most about three aspects: reach, shaping the business outcome, and measuring the efficacy of the ads platform. If you address all these three in an unambiguous way, you will be a clear winner. In particular, the measurability of the efficacy of our platform gives us an edge over competing solutions. Many solutions create awareness and (purchase) consideration but after that you don’t know if and where the actual purchase happens. That’s not the case with us as commerce actually happens on Flipkart and Myntra.”
Garikipati also revealed that nearly 24,500 sellers out of 100,000 sellers have used Flipkart’s ads service.
Advertising is one of the pillars of Flipkart’s business
IOS kept a close watch on Flipkart’s every move directed towards strengthening its advertising business over the past one year. The company’s CEO Binny Bansal stated that it is one of the key focus areas.
The ecommerce biggie acquired mobile advertising firm Adiquity in March 2015. In May, it introduced Product Listing Ads on its app. In August, it disclosed its plans to discontinue seller commission and push paid ads.
What’s in store for the future?
Very soon the etailer is going to release brand story ads of L’Oréal, Micromax, Gillette, Sony and many others on its app, which is far more effective than conventional banner ads.
“Story ads give a very immersive and interactive experience. It’s more of an educational, story-telling format where you’re constantly communicating with consumers using imagery and video. We’ve done it in a way that is native and not clunky like banner ads. It’s also very targeted so brands can show ads based on the relevant users,” asserted Garikipati.
Flipkart is also working towards expanding its network of third-party apps and on-board news, shopping and gaming apps so as to reach 100 million users through its ad business.
Garikipati said, “Reach is important for brands. This is our way to enhance our reach. The time spent by Internet users on commerce apps is not that much. The idea behind the shoppers’ network is to track users wherever they are spending the rest of their time on the digital medium and show relevant ads at the right time.”