E-comm giants Flipkart & Amazon garner over Rs 10,000 cr ad revenue in FY2024

New Delhi: Flipkart and Amazon have both reported substantial earnings from advertisements in the fiscal year 2024. Collectively, both Flipkart & Amazon garnered over Rs 10,000 crore ad revenue in FY2024.

Flipkart Internet, the marketplace arm of the Walmart-owned company, generated approximately Rs 5,000 crore from advertising, marking a notable increase from Rs 3,324.7 crore in the previous year. 

Meanwhile, Amazon India’s advertising income reached Rs 6,649 crore, up from Rs 5,380 crore in FY23.

This surge in ad revenue reflects the growing importance of e-commerce platforms as advertising powerhouses in India. 

Both Flipkart and Amazon have developed tools for advertisers, allowing for better targeting, analytics, and return on investment, which has attracted more spending from brands.

The festive sales periods have become a significant contributor to annual sales and ad revenue for these platforms, with advertisers eager to capitalise on the increased consumer activity.

The rivalry between these e-commerce giants has led to innovations in ad formats and placements, pushing each to offer more value to advertisers.

Amazon Seller Services, the marketplace division of the e-commerce giant in India, reported a 14% increase in operating revenue, reaching Rs 25,406 crore for FY24, up from the previous year. The company also reduced its net loss by 29%, bringing it down to Rs 3,470 crore. Meanwhile, Flipkart achieved a revenue of Rs 17,855 crore but posted a loss of Rs 2,358 crore for FY24.

Although Amazon's revenue surpasses Flipkart’s, the latter holds a larger share of India’s $70-80 billion e-commerce market. Both Amazon and Flipkart are facing growing competition from SoftBank-backed Meesho, which generated Rs 7,615 crore in revenue in FY24.