E-commerce platforms see advertising revenues cross Rs. 15,000 crore (US$ 1.7 billion) in FY25

India’s leading e-commerce platforms are increasingly treating advertising as a strategic revenue engine. Amazon, Flipkart, and Myntra together earned Rs. 15,573 crore (US$ 1.77 billion) in advertising revenues in FY25, up 26% YoY, highlighting the growing importance of retail media. Amazon Seller Services led with Rs. 8,342 crore (US$ 945 million), up 25%, Flipkart Internet generated Rs. 6,317 crore (US$ 716 million), up 27%, and Myntra Designs reported Rs. 914 crore (US$ 103 million), up 28%. Advertising now contributes significantly to overall revenues, 28% for Amazon, 31% for Flipkart, and 15% for Myntra, providing high-margin support for platforms operating on thin e-commerce margins. Retail media uses first-party customer data to target buyers at the point of purchase, transforming platforms into media channels in addition to marketplaces.
Globally, retail media is a major growth driver. Amazon’s retail media revenues are projected to reach Rs. 5,34,553 crore (US$ 60.6 billion) in 2025 and Rs. 6,14,824 crore (US$ 69.7 billion) by 2026, positioning it as the third-largest digital ad player worldwide after Alphabet and Meta. In India, Google and Meta remain dominant, with combined FY24 ad revenues surpassing Rs. 50,000 crore (US$ 5.67 billion). The surge in e-commerce advertising parallels India’s booming online retail market, estimated at Rs. 5,29,260 crore (US$ 60 billion) in 2024 with 270 million shoppers and expected to reach Rs. 14,99,570-16,75,990 crore (US$ 170-190 billion) by 2030. Fast-moving consumer goods (FMCG) and consumer durables, particularly electronics, lead ad spending, while video-led formats and integrated online-offline strategies are driving the evolution of ‘Retail Media 2.0,’ enabling comprehensive marketing campaigns across the consumer journey.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.