India’s top e-commerce companies are turning advertising into a core business. Amazon, Flipkart and Myntra together reported ₹15,573 crore in ad revenues in FY25, a 26% jump from a year earlier, underscoring the growing role of retail media as a key growth driver.
Amazon Seller Services led the pack with ₹8,342 crore, up 25% from FY24. Flipkart Internet followed with ₹6,317 crore, a 27% rise, while Myntra Designs posted ₹914 crore, up 28%.
Ads now account for a sizable share of total revenue: 28% for Amazon Seller Services, 31% for Flipkart Internet and about 15% for Myntra. For platforms that operate on thin margins, advertising has emerged as a high-margin buffer.
Retail media refers to ads served on shopping platforms that use customer data to target buyers at the point of purchase.
The model is global. WARC Media projects Amazon’s retail media revenues at $60.6 billion in 2025, rising to $69.7 billion by 2026. Amazon is already the world’s third-largest digital ad player, behind Alphabet and Meta. In 2024, Google's parent company reported $265 billion in ad sales, Meta $161 billion and Amazon $56 billion.
In India too, Google and Meta remain far ahead. Google India’s ad revenue rose 11% in FY24 to ₹31,221 crore. Meta India’s climbed to ₹22,730 crore from ₹18,308 crore, pushing their combined tally past ₹50,000 crore for the first time. The two companies are yet to file their FY25 financials.
“Retail media has become a significant part of the market. The opportunity continues to expand, with very limited signs of slowdown. Our growth pace remains consistent with the last one to two years,” said Gulshan Verma, Director, Amazon Ads India, in a recent interaction.
The surge in e-commerce advertising reflects the broader growth of online retail. Bain & Company estimates India’s e-retail market at $60 billion in 2024, with 270 million shoppers. The market could expand to $170–190 billion by 2030, growing more than 18% annually.
According to Dentsu, retail media has evolved from being purely performance-driven to a broader branding tool, powered by e-commerce platforms’ rich first-party data. Video-led formats are pushing what it calls “Retail Media 2.0,” enabling campaigns across the entire marketing funnel.
FMCG and consumer durables, especially electronics, are driving the bulk of spending. Analysts expect more categories to join in as brands increasingly integrate online and offline strategies to sharpen targeting.
With ads contributing as much as a third of their revenues, e-commerce platforms are no longer just marketplaces. They are positioning themselves as media channels, competing directly with search, social and video for advertising budgets.
Amazon Seller Services led the pack with ₹8,342 crore, up 25% from FY24. Flipkart Internet followed with ₹6,317 crore, a 27% rise, while Myntra Designs posted ₹914 crore, up 28%.
Ads now account for a sizable share of total revenue: 28% for Amazon Seller Services, 31% for Flipkart Internet and about 15% for Myntra. For platforms that operate on thin margins, advertising has emerged as a high-margin buffer.
Retail media refers to ads served on shopping platforms that use customer data to target buyers at the point of purchase.
The model is global. WARC Media projects Amazon’s retail media revenues at $60.6 billion in 2025, rising to $69.7 billion by 2026. Amazon is already the world’s third-largest digital ad player, behind Alphabet and Meta. In 2024, Google's parent company reported $265 billion in ad sales, Meta $161 billion and Amazon $56 billion.
In India too, Google and Meta remain far ahead. Google India’s ad revenue rose 11% in FY24 to ₹31,221 crore. Meta India’s climbed to ₹22,730 crore from ₹18,308 crore, pushing their combined tally past ₹50,000 crore for the first time. The two companies are yet to file their FY25 financials.
“Retail media has become a significant part of the market. The opportunity continues to expand, with very limited signs of slowdown. Our growth pace remains consistent with the last one to two years,” said Gulshan Verma, Director, Amazon Ads India, in a recent interaction.
The surge in e-commerce advertising reflects the broader growth of online retail. Bain & Company estimates India’s e-retail market at $60 billion in 2024, with 270 million shoppers. The market could expand to $170–190 billion by 2030, growing more than 18% annually.
According to Dentsu, retail media has evolved from being purely performance-driven to a broader branding tool, powered by e-commerce platforms’ rich first-party data. Video-led formats are pushing what it calls “Retail Media 2.0,” enabling campaigns across the entire marketing funnel.
FMCG and consumer durables, especially electronics, are driving the bulk of spending. Analysts expect more categories to join in as brands increasingly integrate online and offline strategies to sharpen targeting.
With ads contributing as much as a third of their revenues, e-commerce platforms are no longer just marketplaces. They are positioning themselves as media channels, competing directly with search, social and video for advertising budgets.
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