Flipkart, India’s largest homegrown startup is planning to compete with international giants like Google and Facebook in the online advertising space. Currently, Flipkart is the 3rd highest revenue generator from online ads in India and wants to double its sales.
To achieve this target, Flipkart is eyeing advertisers from banking and financial sectors, where the company does not have a presence. “Over the next few months, we will be forging some interesting partnerships with a number of brands from different sectors, as we start opening up our platform,” said Prakash Sikaria, senior director and head of monetization and growth at Flipkart.
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Flipkart’s advertising business reached $100 million in annual in March 2018 and video ads space will the next focus in digital ads business.
Flipkart launched its advertising business in May 2015 after acquiring AdIQuity. At that time, AdIQuity platform was used by over 15,000 app developers and publishers and had a reach across over 200 countries.
Flipkart seems to be inspired by the business model of Alibaba Group, In 2015 Flipkart’s then CEO Sachin Bansal had tried to transform the company into an online marketplace to generate billions of dollars in ad revenue from popular brands but the plan as not executed. Flipkart has become a famous name in the online ads business but Google and Facebook are still the favourites.
The introduction of Jio in the Indian telecom market has opened new gates for advertisers as mobile market has become very big in the country. Experts are tracking the advertising business in India and the next 3-5 years are very crucial.
E-commerce giants Flipkart and Amazon, have presented a significant business opportunity for brands, one that they have been quick to capitalize on. Ads is a great alternative source of revenue for these companies.
Along with ads, Flipkart also generates revenue through paid content from brands and by connecting advertisers with its shoppers.