Retail and commerce media surge in India in 2024

If 2023 was the year when retail media began to crack its knuckles in India, 2024 saw it flexing some serious muscle—and commerce media wasn’t far behind. The twin powerhouses of digital advertising, fuelled by ecommerce giants, data sophistication and advertisers' growing appetite for ROI-driven campaigns, have carved out a formidable space in the Indian media mix.

But before we dive into the meat of the matter, let’s take a moment to mourn the fading relevance of simple banner ads and static impressions that no longer inspire marketers or audiences. As consumers increasingly shop (and scroll) across platforms, the real estate for ads isn’t limited to a retailer’s homepage. It’s everywhere. From the Flipkart cart screen to a mid-scroll video on YouTube powered by commerce data—if you’ve searched for shoes once, you’re going to see those shoes in places you didn’t even know could host an ad.

From Walled Gardens to Open Windows

Retail media led by the likes of Amazon, Flipkart and Reliance Retail’s growing digital arm, continued to dominate India’s advertising chatter. Amazon India’s advertising revenues reportedly breached the Rs 6,000-crore mark this year—a 25% increase over 2023—driven by sponsored products, display ads and brands scrambling for prime positioning during peak festive seasons. Flipkart Ads, while not far behind, announced a 30% year-on-year growth in ad revenues, nearly touching the Rs 5,000-crore milestone (at Rs 4972 crore), as ecommerce platforms tightened their grip on brands’ digital budgets.

But 2024 also marked the blurring lines between retail media and commerce media. Commerce media, a broader beast encompassing ad placements across non-retail platforms powered by transactional data, made serious strides this year. Companies like InMobi and Criteo have led the charge, introducing solutions that allow advertisers to target purchase-ready consumers beyond the confines of e-commerce apps. Commerce media spend in India surged by over 40% in 2024, as brands realized that consumers are no longer tethered to single
platforms when shopping—or deciding to shop.

It’s a simple logic, really: Why restrict yourself to Amazon ads when you can show that same ad on YouTube, Instagram, and news portals, powered by data from shoppers who almost bought your product but got distracted by a cat video? Efficiency, scalability, and the promise of higher conversions are why marketers are shifting parts of their budgets to commerce media, even as retail media remains the baseline for bottom-funnel performance.

The Festive Push and Rising Competition

India’s festive season has always been a litmus test for advertisers, and 2024 proved no different. According to Redseer Strategy Consultants’ November report, India's e-commerce sector recorded 12 per cent year-on-year growth during the 2024 festive season, spanning September 15 to October 31, with a gross merchandise value (GMV) of approximately $14 billion.
Amazon and Flipkart dominated the narrative with custom ad solutions, while Reliance Retail continued to grow its JioMart Ads offering, pulling in both small businesses and national brands. But the bigger story was the widening ecosystem of commerce media.

InMobi, for instance, launched new integrations that allowed advertisers to connect retail signals with video and social ad inventories, creating seamless paths to purchase. Meanwhile, Criteo expanded its partnerships with Indian retailers and publishers, making transactional data the lynchpin of programmatic campaigns.

As expected, digital-first sectors like electronics, fashion, and FMCG were the biggest spenders in both retail and commerce media, but there were some surprises this year. Auto brands, traditionally reliant on search and social, experimented heavily with commerce media, using shopping data to target buyers in research mode. Similarly, homegrown D2C brands, which grew by leaps and bounds in 2024, found commerce media to be a cost-effective channel for scaling beyond Instagram and Google Ads.

Adtech Evolves, Retail Wins

Of course, the growth of retail and commerce media hasn’t been in isolation. Larger trends in India’s digital advertising landscape have both influenced and been influenced by this shift. For starters, programmatic commerce media’s data-driven precision. As retail media platforms integrate with programmatic exchanges, the gap between intent and delivery continues to shrink.
Then there’s the AI revolution. Platforms are using AI to optimize product ads in real-time, predicting not just what consumers are likely to buy but when they’re likely to buy it. Amazon’s machine-learning-powered ad placements reportedly delivered a 30% higher ROAS (Return on Ad Spend) for brands this year. In parallel, smaller adtech players in India are leveraging AI to help brands analyze commerce data and allocate budgets dynamically across retail and open-web platforms.

What’s clear is that retail and commerce media are no longer fringe channels; they’re central to India’s digital advertising playbook. As the year wraps up, one truth stands out: The growth of retail and commerce media in India is a reflection of its shoppers. Fragmented yet hyperconnected, discerning yet impulsive, they demand ads that match their intent, wherever they are. Whether it’s a Flipkart banner, an Amazon carousel, or a commercedriven video ad while they doomscroll on a news app, India’s 2024 consumer has spoken—and brands are listening.