Flipkart ads intend to become a $100 million business till the end of fiscal year 2018, after the exact two years when it acquired AdIQuity, global mobile ad network. The company, that offers solutions for vendors on its own commercial center, is planning to stretch its leg towards third party solutions and digital products.
Flipkart’s tie-up with Google and YouTube
It is connecting with YouTube and Google to target customers over digital channels. It offers bundled digital products to gain additional revenue.
Company is focused on overall growth
Prakash Sikaria who is the senior director of new initiatives and monetization at Flipkart along with head of the Flipkart ads, said that,
“In April 2016, we were focused on growing our business with brands and have now opened up for brands with which we have an indirect relationship. We are working with the BFSI industry and telcos to bundle products with purchases, monetising the intent to buy. At the end of the day we are the largest online transaction platform”.
Flipkart will launch financial products
Flipkart is intended to join the selling subscriptions of digital products space and credit cards though it will launch the financial products marketplace in couple of months.
Additional offers you can avail at Flipkart’s platform
Sikaria additionally said that,
“We will also launch extended warranties and device insurance, among others. Also, we have data on consumer credit profile, buying profile and the card he uses. During say a sale event when we are running promotions with bank partners, we can capture the intent of a customer to sell a particular bank’s card as well. Going ahead, you could buy a Netflix subscription on Flipkart”.
Estimated value of Indian digital marketplace
According to Forrester Research, the Indian digital marketing space was estimated at Rs 11645 crore in year 2016 when Facebook and Google were dominating the space.
Searches shifted to apps from Google search engine for products
People are moving away from general search engines to e-commerce apps using hand held devices. Hence advertising on online space is an attractive option as depicted by experts in industry.
Hoping to gain high revenue through online ads
Senior forecast analyst of Forrester Research India, Satish Meena said that, “Online retailers are increasingly trying to increase revenues through online advertisements. The two biggest online retailers, Amazon and Alibaba, are getting a significant chunk of revenues from advertising”.
Desire to have share of FMCG ads
Flipkart is hoping to have a share of FMCG advertisements after the launch of FMCG and grocery products on the cards.
Sikaria said that, “FMCG companies pay for shelf space and on digital it will be a different play for visibility by the brands. We will also solve sampling at scale for new launches for our FMCG partners”.
Statistical data for Indian Digital business
Durable customer products cover more than 50% of digital advertisement in India.
He said that the advertisement business grew four times in the fiscal year of 2017 from the previous years. The vertical has submitted the same growth in this financial year.
Sikaria additionally said that, “We plan to launch these initiatives ahead of the Big Billion Days sale, which will act as a booster”.