Flipkart plans to expand into third party solutions and digital products
Flipkart plans to expand into third party solutions and digital products

Flipkart Ads, a division of the online marketplace, aims to be a $100-million business by March 2018. It was formed two years after Flipkart acquired global mobile ad network, AdIQuity.The digital ad platform, which offers solutions for sellers on its online marketplace, now plans to push third-party solutions and digital products as well.

It is tying up with Google and YouTube to target customers across digital channels. Selling bundled digital products is expected to generate additional revenue.

Prakash Sikaria, Senior Director of monetisation and new initiatives, Flipkart and Head of Flipkart Ads, said, "In April 2016, we were focused on growing our business with brands and have now opened up for brands with which we have an indirect relationship. We are working with the BFSI industry and telcos to bundle products with purchases, monetising the intent to buy . At the end of the day we are the largest online transaction platform."

Flipkart, which will launch its financial products marketplace in a month or two, is also likely to enter the digital-product space selling subscriptions and credit cards.

Sikaria said, "We will also launch extended warranties and device insurance, among others. Also, we have data on consumer credit profile, buying profile and the card heshe uses. During say a sale event when we are running promotions with bank partners, we can capture the intent of a customer to sell a particular bank's card as well. Going ahead, you could buy a Netflix subscription on Flipkart."

As user searches move away from Google to ecommerce apps in consumer durables, phones and fashion, advertising on online marketplaces is an attractive proposition, industry experts said.

Satish Meena, Senior Forecast Analyst, Forrester Research India, said, "Online retailers are increasingly trying to increase revenues through online advertisements. The two biggest online retailers, Amazon and Alibaba, are getting a significant chunk of revenues from advertising."

Sikaria said, "FMCG companies pay for shelf space and on digital it will be a different play for visibility by the brands. We will also solve sampling at scale for new launches for our FMCG partners."

According to Sikaria, the advertising business grew four times between March 2016 and 2017 and is anticipated to have a similar surge in growth this year.

Sikaria added, "We plan to launch these initiatives ahead of the Big Billion Days sale, which will act as a booster."

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading