Ad Revenues on Q-Commerce Platforms

Millions of consumers use q-commerce platforms to order essentials, fashion, cosmetics, kitchen appliances. They can now monetize their large user base through targeted advertising.

These platforms are now generating an estimated Rs.3000-3500 crore annual recurring revenue (ARR) from advertisements.

Blinkit leads with a lion’s share of 45 per cent, followed by Zepto 35 per cent and Swiggy Instagaram at 20 per cent. Amazon India’s ad revenue for 2024 stands at Rs 6700 crore (only twice as much), though q-commerce accounts for only 8 per cent of online shoppers.

The surge shows a fundamental shift in consumer behavior. Q-commerce started as a top-up channel. It is evolving into weekly and monthly purchases channel. This change gives a boost to advertising.

Q-commerce is affordable and high-impact way to build visibility and test products in the market. The biggest drives are impulse-buying products, e.g. ice cream packs, beverages.

The cost-per-click rates are on par with or even higher than Amazon’s.

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