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As India's digital commerce ecosystem experiences unprecedented growth, retail media has emerged as a powerful force transforming the way brands engage with consumers. At the heart of this shift is Flipkart Ads, a rapidly evolving retail media network that has become a critical pillar in Flipkart’s monetisation and brand strategy.
In this exclusive conversation, Vijay Iyer, Vice President and GM of Flipkart Ads, sheds light on how Flipkart’s advertising arm has rapidly evolved into a strategic pillar for monetisation and brand engagement. As retail media gains prominence in India’s digital advertising landscape, Flipkart Ads is scaling up with cutting-edge ad formats, AI-powered targeting, and full-funnel solutions tailored for diverse advertisers - from emerging D2C brands to regional businesses. Iyer discusses the platform’s transformation into an adtech ecosystem that drives personalized commerce, empowers sellers, and delivers measurable outcomes across the shopper journey.
Edited excerpts
Flipkart Ads has become a crucial pillar in Flipkart’s monetisation and brand engagement strategy. How has Flipkart Ads evolved in the past year in terms of scale, advertiser mix, and ad formats?
Over the past year, Flipkart Ads has undergone remarkable growth and innovation. Flipkart Ads has now scaled into an adtech platform that democratises advertising and empowers sellers across the board. Advertiser participation has seen a notable upswing, with the number of sellers investing in advertising rising notably as compared to the same period last year. The average ad spend per seller has risen significantly, underscoring a deepening trust in our solutions and a strong alignment with sellers’ growth ambitions.
Our advertiser base has also diversified, with growing traction from emerging D2C brands, regional advertisers, and non-endemic categories. Through the Flipkart Shopper Audience Platform, brands can now access over 1,000 audience segments derived from 500+ million registered users, empowering them to calibrate and execute data-driven campaigns. On the product front, we’ve moved beyond static inventory.
Flipkart Ads is focused on delivering a curated, engaging, and personalized shopping experience while simultaneously boosting sales for partner brands. Through targeted advertising solutions, Flipkart enables brands to enhance engagement, improve the customer experience, build brand loyalty, and drive higher conversion rates across different customer cohorts. Flipkart Ads is innovating with interactive shoppable videos, carousel ads, gamified engagement formats, Brand Flip, and 3D product explainers, formats that allow customers to discover, engage, and even purchase within a single immersive journey.
Flipkart Ads is now a one-stop solution for brands of all scales to reach the ‘Many Indias’, making full-funnel engagement a reality, from awareness to transaction.
With 2025 set to be a pivotal year for digital commerce and advertising in India, what are your key priorities for Flipkart Ads going forward — across technology, product innovation, and advertiser experience?
2025 will mark a defining shift in India's digital commerce and advertising landscape, with sharper consumer expectations, deeper penetration into Bharat, and brands demanding measurable business outcomes from every media rupee. At Flipkart Ads, we see this not just as an evolution but as an opportunity to reimagine how brands connect, engage, and convert shoppers at scale. Our focus is on building smarter technology, driving richer ad experiences, and creating an advertiser ecosystem that is insight-led, performance-driven, and future-ready.
As digital ad spending accelerates, Flipkart Ads is leveraging AI-powered programmatic advertising solutions. Using real-time consumer insights and predictive analytics, we aim to offer hyper-targeted ad placements that deliver superior ROI for brands across the platform. In line with India's booming e-commerce market, we are reimagining our advertising formats to be more interactive and immersive.
Flipkart Ads is built not just to serve ads, but to build brands, unlock growth in Bharat, and enable personalized storytelling at scale. Our effort is constantly towards democratizing ads by making it simple, affordable and accessible to all.
D2C brands and regional advertisers are increasingly turning to e-commerce platforms to scale efficiently. What kind of traction are you seeing from these segments on Flipkart Ads, and how are you tailoring your offerings for them?
India’s e-commerce ecosystem is at a pivotal inflection point, driven by rapid digital adoption, increasing internet penetration across Bharat, and a growing appetite for personalized, value-driven shopping experiences. According to the report, How India Shops Online 2025, over 60% of new customers and 60% of new sellers are now coming from Tier 2 and beyond, with discovery-led shopping journeys becoming increasingly important. This shift is unlocking unprecedented opportunities for D2C brands and regional advertisers who are looking to scale efficiently and engage meaningfully with the next 200 million consumers.
D2C brands, many of which are digital-first and innovation-led, need platforms that can offer full-funnel solutions - from awareness to conversion, in a measurable and cost-effective manner. Regional advertisers, on the other hand, seek tools that allow them to hyperlocalize their reach, speak the language of their consumers, and drive consideration among niche audiences.
Winning across India requires localized product assortments, trend-led innovation, targeted e-retail ads, faster delivery, and stronger catalouge and ratings strategies to convert varied demand into growth. For brands, this means that simply being available is no longer enough; they need to create moments of discovery, trust, and engagement where the consumer already is.
Flipkart Ads has evolved to become a strategic growth enabler, not just an advertising platform. Flipkart is uniquely positioned to serve the needs of D2C and regional brands through audience-first targeting, dynamic storefronts and video commerce solutions, regional language support, and full-funnel measurement tools.
Moreover, through Flipkart IRIS, D2C players can track new-to-brand cohorts, brand recall, and even region-specific conversions. Regional advertisers benefit from our hyperlocal segmentation, which enables contextual and culturally relevant brand storytelling. The net impact is that Flipkart Ads is not just a media channel, it's becoming a strategic growth enabler for these fast-growing segments.
Retail media networks globally are innovating with new ad formats, immersive experiences, and native commerce integrations. Are there any innovations in ad formats or placements that Flipkart Ads is piloting or planning to launch in India?
Innovation is at the core of our roadmap. As the retail media ecosystem matures, innovation around formats, creative storytelling, and seamless integrations is becoming critical to capturing consumer attention and delivering measurable value for brands. In India, consumers, especially from Tier 2+ cities, are also increasingly seeking richer, more personalized digital experiences. To meet these evolving expectations, Flipkart Ads is deeply focused on innovating across both ad formats and ad placements to create high-impact brand experiences that align with shoppers' buying journeys.
At Flipkart, we are moving beyond static banner ads and exploring rich media ad formats, such as carousel ads, interactive shoppable videos, and gamified ad experiences. These formats allow consumers to engage with products, browse collections, watch brand stories, and even add to cart, without leaving the Flipkart app.
Flipkart Ads is committed to creating discovery-led, commerce-integrated ad experiences that elevate both the shopper journey and brand performance.
India’s e-commerce ad market is heating up, with more platforms building out media capabilities and brands shifting their strategies. How do you see the Indian e-commerce ad market evolving, especially with the rise of retail media networks and performance-driven advertising?
India’s e-commerce advertising ecosystem is entering a transformative phase. The retail industry contributes over 10% to the country’s GDP, and e-commerce is increasingly the growth engine of that momentum. With the online shopper base projected to reach 500 million by 2030 and e-commerce GMV expected to hit $350 billion, retail media is no longer a niche, it's becoming central to brand strategy.
The emergence of retail media networks (RMNs) has shifted brand focus from reach to relevance. Brands today are recognizing that retail media networks offer a unique advantage - the ability to connect advertising spend directly to measurable purchase outcomes. E-commerce platforms offer full-funnel visibility, from discovery to consideration to purchase, all within an integrated ecosystem. This performance-driven model is particularly valuable in a market like India, where brands are increasingly focused on maximizing ROI, driving agility, and targeting with precision
Flipkart Ads offers brands a unique advantage by linking ad spend directly to conversions within a trusted commerce environment. Brands are recognizing the value of end-to-end visibility — from impression to checkout — and this performance-driven mindset is shaping media decisions.
We foresee five key shifts driving the Indian retail media landscape: performance accountability, audience-first personalization, retail intelligence-driven planning, immersive formats like video commerce, and democratized access for smaller brands. Flipkart is well-positioned to lead this evolution, thanks to our deep consumer insights, first-party data, and scalable tech infrastructure.
How does Flipkart Ads ensure effective measurement, reporting, and brand safety — especially for full-funnel campaigns?
Measurement and brand safety are foundational to the Flipkart Ads ecosystem. We provide full-funnel reporting capabilities that allow brands to track KPIs from awareness to conversion and beyond. From impressions and clicks to add-to-cart rates and units sold, brands can see exactly how their campaigns are performing at each stage.
Flipkart IRIS plays a pivotal role here, offering granular insights across share of voice, brand recall, competitive benchmarking, and search performance. The Search Term Report, which classifies keywords into branded, competitive, and owned categories, enables precise optimization of ad strategies.
Our platform is designed with closed-loop brand safety in mind. Ads appear in native placements within relevant purchase journeys, not random, unverified content. We provide full transparency on placements and targeting, reinforced with content filters and real-time monitoring to uphold trust and suitability across categories.
Peak sale seasons like Big Billion Days see a surge in brand activity, but year-round ad planning is gaining traction. What kind of seasonal trends are you observing in terms of ad spends, creative strategies, and category-specific surges?
Today, people celebrate small occasions and special days. For brands to be visible and connected with their target audience/customers, it is important to have a year-long ad strategy rather than focusing on a big event only. A long-term strategy helps in top-of-the-mind recall and also cultivates a stronger relationship with their customers.
Seasonality plays a significant role in shaping ad strategies on Flipkart. Peak shopping events like Big Billion Days (BBD), Diwali, and regional festivals continue to drive substantial surges in campaign activity and spending. However, we’re seeing a notable shift toward always-on strategies, as brands look to sustain engagement year-round.
Flipkart Ads supports brands with cohort-based campaign planning and localized creatives to tap into ongoing demand cycles. As we see it, the future is a blend of high-intensity seasonal bursts and continuous visibility across the calendar.
With traditional ad channels becoming increasingly fragmented, retail media is seeing higher budget allocations. How have advertiser spends on Flipkart Ads evolved year-on-year? Are you witnessing a budget shift from other digital or offline channels to e-commerce-led advertising?
According to the latest Dentsu e4m Digital Report 2025, Digital advertising claims the largest share of advertising spend. The digital advertising sector witnessed a growth of 21.1%, closing 2024 and is expected to reach Rs 69,856 crore by 2026, with a CAGR of 19.09%. Over the past year, advertiser spend on Flipkart Ads has grown significantly, underscoring the increasing reliance on performance-led, commerce-integrated advertising. This growth is being driven by the platform's ability to deliver measurable ROI and precise targeting. Flipkart Ads is now considered a must-have in the media mix.
The diversification of our advertiser base is also notable. While large FMCG and electronics brands continue to dominate spend, we’re witnessing strong growth from newer sectors like fashion, D2C, regional businesses, and premium lifestyle brands. As outcome-driven advertising becomes the norm, we expect this momentum to only accelerate. Flipkart Ads caters to the entire ecosystem of advertisers and endeavors to deliver outcomes irrespective of the ad budgets.
One of Flipkart’s key strengths has been its deep reach in India. Can you talk about how Flipkart Ads is helping brands break out of metro-centric targeting and tap into Tier 2, Tier 3, and vernacular-first consumers effectively?
India’s e-commerce growth today is increasingly being driven by consumers from Tier 2, Tier 3, and smaller towns. These consumers are mobile-first, value-driven, and increasingly seeking personalized and vernacular experiences. Brands today cannot afford to limit themselves to metro audiences alone. They need to build deeper, more relevant connections across India’s emerging markets, and Flipkart Ads is playing a key role in enabling this transition. Flipkart has always had deep roots in Bharat, with a strong presence across thousands of towns and cities, a wide vernacular language offering, and a trusted ecosystem for online shopping. This reach, combined with rich consumer insights, allows us to help brands connect authentically with audiences beyond traditional metros.
Brands that customize their messaging for local languages, regional festivals, and cultural nuances consistently see stronger engagement and higher conversions among non-metro audiences. For example, Colgate Visible White wanted to grow its premium category in non-metro and Tier2+ cities. With Flipkart Ads, they saw a remarkable growth in unit sales across these regions.
Through contextual ads, vernacular content strategies, and personalised cohort-based campaigns— brands can take advantage of all the numerous micro events that occur - which have region/state specific appeal - to engage with customers throughout the year. Flipkart helps brands offer selections tailored to local festivals and cultural moments. Reaching India’s emerging digital consumers with relevance and authenticity is becoming a critical lever for long-term brand growth.
Retail media is evolving fast — with new players, formats, and expectations around data, personalization, and commerce. What trends do you see shaping the next wave of retail media in India, and how is Flipkart future-proofing its ad ecosystem to stay ahead?
India’s retail media space is evolving rapidly, and we see five key trends shaping its future: first-party data dominance, immersive commerce, AI-powered targeting, cross-channel convergence, and outcome-based planning.
Our first-party data strength is unmatched in scale and granularity. We're expanding immersive formats such as video commerce, AR-based try-ons, and influencer-led storefronts. Our AI-driven platforms are getting smarter, enabling dynamic creative optimization and real-time audience matching. Partnerships like YouTube’s Shopping Affiliate Program are helping us bridge social and commerce seamlessly. Meanwhile, IRIS continues to evolve with cohort analysis, brand health tracking, and competitive intelligence.
Flipkart Ads is evolving to support awareness-to-conversion journeys, integrating display, search, influencer collaborations, and offline-to-online activations to deliver holistic marketing solutions. At Flipkart Ads, we are building the infrastructure, intelligence, and innovation to lead this shift.
With retail media becoming a key revenue stream for global e-commerce giants, monetization through ads is no longer just a side play — it's central to the business model. What percentage of Flipkart’s total revenue now comes from advertising, and how do you see this growing over the next couple of years?
According to the Pitch Madison Advertising Report 2025, advertising on e-retail platforms accounts for nearly 23% of total digital media spend in India, and this share is poised to grow.
At Flipkart, advertising is a fast-growing and strategic part of our ecosystem. Flipkart Ads has scaled rapidly as a core enabler of the platform success. Our focus is on unlocking value across the board — for consumers, sellers, and brand partners. This holistic approach is why Flipkart Ads is becoming central to how we drive growth, engagement, and long-term loyalty.
We anticipate sustained growth driven by full-funnel ad solutions, advanced analytics, and expanded brand participation across categories and geographies. Advertising will continue to be a critical lever in Flipkart’s broader value creation strategy.
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