E-commerce platforms are the fastest growing medium for digital ads in India, with a $6-8 billion opportunity by 2030, according to strategy consulting firm Redseer.
The growth in product e-commerce user base is expected to be faster than search and social media platforms, with 300-350 million new online shoppers from tier 2 markets expected by 2030.
India’s digital ads market is expected to touch $35 billion in the same time-period and e-commerce platforms will be one of the biggest contributors.
The total advertising market in India stood at $11 billion in 2021, out of which 37 percent comprised the digital ads market.
The contribution of e-commerce platforms to the adtech industry has increased from 15 percent to 20 percent in the last two years, and will contribute between 20-25 percent of the market share.
Product e-commerce driven ads market is dominated by online marketplaces Flipkart and Amazon with 75 percent share.
The advertising market, which includes traditional and digital ads, is poised to touch $45-50 billion by 2030, out of which a staggering 70-75 percent will comprise digital ads.