· 7 min

Retail media is the third ad giant: how to use it in India

TL;DR. Retail media - the ad networks run by Amazon, Flipkart and quick-commerce apps like Blinkit, Zepto and Swiggy Instamart - is the fastest-growing slice of Indian digital advertising after search and social. GroupM's 2024 estimate put Indian retail media at roughly INR 5,000 crore and growing above 30 percent a year. It converts because the shopper is already at the shelf. Treat it as a performance channel with its own funnel, not a bolt-on to your Meta plan.

Why retail media became the third pillar

For a decade the Indian digital duopoly was Google and Meta. That is over. Retail media - advertising you buy inside a shopping platform, next to the product a person is already searching for - is now the third pillar. Amazon Ads, Flipkart Ads and the quick-commerce networks sell placements at the exact moment of purchase intent, which is why margins on this inventory are so high for the platforms and conversion is so strong for the brand.

The numbers back it. GroupM's This Year Next Year India report flags retail media as one of the fastest-growing ad formats in the country, expanding at a double-digit clip while older display formats flatten. Globally, WARC and eMarketer both project retail media to cross a fifth of all digital ad spend by 2027, and India is on the same curve, pulled by the quick-commerce boom.

What actually counts as retail media in India?

Four buckets. One, marketplace search ads on Amazon and Flipkart - sponsored products and sponsored brands. Two, quick-commerce ads inside Blinkit, Zepto and Swiggy Instamart, where a ten-minute delivery promise compresses the whole funnel. Three, on-platform display and banner inventory. Four, the retailer's first-party audience data extended off-site. For a D2C brand in Delhi NCR, the first two buckets work hardest.

How to actually spend on it

Start with the category, not the creative. On Amazon and Flipkart, sponsored-product ads on your own branded search terms are the cheapest defensive buy you will ever make - you are stopping a competitor from renting your brand name. Layer generic category terms on top only once your branded terms are locked. On quick-commerce, the win is share-of-shelf during peak windows: evenings, weekends and festive spikes around Diwali and end-of-season sales when Blinkit and Zepto baskets swell.

Budget the way you would any performance channel. Set a target ACOS - advertising cost of sale - per platform, not one blended number. A typical starting band for Indian marketplaces sits around 15 to 25 percent ACOS for established products, looser for launches where you are buying visibility. Watch TACOS, total advertising cost of sale, to see whether paid is lifting organic rank or just cannibalising it.

The measurement trap most brands fall into

Retail media reporting is walled-garden reporting. Each platform grades its own homework and each uses a different attribution window. Do not compare Amazon's ACOS to Blinkit's ROAS as if they are the same metric. Pull the raw sales and spend into one sheet, normalise the window to a common 7-day or 14-day view, and judge every platform against your own blended contribution margin. If a channel cannot clear that margin after fees, it is a branding buy, so call it that and budget it separately.

FAQ

01

What is retail media and why does it matter in India?

Retail media is advertising bought inside a shopping platform - Amazon, Flipkart, Blinkit, Zepto, Swiggy Instamart - shown to a person who is already shopping. It matters because it captures purchase intent at the shelf, which is why GroupM ranks it among India's fastest-growing ad formats, worth several thousand crore and climbing above 30 percent a year.

02

How is quick-commerce retail media different from Amazon or Flipkart ads?

Amazon and Flipkart are considered-purchase marketplaces where a shopper may browse for minutes or days. Quick-commerce apps promise ten-minute delivery, so the entire funnel collapses into a single session. That means share-of-shelf during peak evening and weekend windows matters far more than long consideration-stage tactics.

03

What ACOS should a brand target on Indian marketplaces?

Established products usually target a 15 to 25 percent ACOS, tighter on high-margin SKUs and looser during a launch when you are buying rank and reviews. There is no universal number - set it against your own contribution margin after platform fees, and track TACOS to confirm paid spend is lifting organic sales rather than replacing them.

04

Is retail media only for large brands?

No. A small D2C brand in Delhi NCR selling on Blinkit or Amazon can start with a modest daily budget defending its own branded search terms, the highest-return buy available. It scales down cleanly because you cap spend per keyword and per platform.

05

How does Buzzard Pro approach a retail media plan?

We start with a category and margin diagnostic, map which retail-media buckets fit the product, then run each platform as its own performance line with an ACOS target and a normalised measurement sheet. See our companion guide on quick-commerce marketing in India.

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