Why 2025 could be the year of Q-Comm advertising?

India’s digital advertising landscape is on the verge of a mega transformation, driven by the significant rise of quick commerce (Q-comm) platforms. In just 3-4 years of existence, these platforms have not only disrupted the advertising business of e-commerce giants like Amazon and Flipkart but have also commanded a significant share of the digital advertising pie.

“Blinkit and Zepto would have made over Rs 1,000 crore each from advertising alone in FY24. Swiggy Instamart, BigBasket and others would have pocketed nearly Rs 1,000 crore together taking the cumulative figure to roughly Rs 3,000 crore,” an industry observer shared.

Notably, Q-Comm's advertising revenue has rapidly scaled to one-tenth of what tech giant Google earns from ads in India. Their share also accounts for a significant one-fourth of the Rs 11,600 crore generated by two leading e-commerce giants. These emerging start-ups now hold a 6% stake in India’s digital advertising market, which exceeded Rs 50,000 crore in the last fiscal year.

From cosmetics to clothes and iPhones to toasters, India’s quick commerce market is booming. Brands in almost all categories are taking note of this rise and are planning to allocate more budgets for these platforms for quick conversion.

“The phenomenon is going to become extremely big in the coming days. Q-comm ad revenue might cross Rs 5,000 crore by the end of 2025,” advertisers predict.

Riding on the Q-Comm wave, Amazon is entering India’s quick commerce space, aiming for 15-minute deliveries in Bengaluru this month, with plans to expand to major cities. Flipkart has also launched quick deliveries in select areas. Even e-tailers like Nykaa and Myntra have introduced similar services to cater to young shoppers seeking instant fashion and faster delivery. Tata-owned BigBasket tried quick commerce in 2022 but halted it due to viability issues, only to join the race again this year.

Sahil Shah, President of Dentsu Creative Isobar, notes, “Quick commerce (Q-Comm) services generate massive volumes compared to platforms like YouTube, Instagram, and traditional e-commerce. In the past two years, growth has been exponential—multiples, not just percentages. Advertising on these platforms proves highly effective, particularly for driving on-platform sales. When done in the right context and with the right creatives, the likelihood of conversions increases significantly. Thus, Q-Comm not only enhances branding but also delivers measurable ROI.”

Meanwhile, fintech and payment platforms such as Paytm, Walmart-owned PhonePe, and Google Pay are becoming increasingly popular among direct-to-consumer (D2C) brands as preferred advertising channels and powerful customer acquisition tools. Their cumulative ad revenue is believed to have reached Rs 400 crore annually, industry leaders say.

Impulse-driven categories loving it

With Q-Comm offering 10-minute deliveries, brands are keen to capitalise on the impulse-driven buying behaviour of consumers. This approach aligns perfectly with bottom-funnel marketing strategies, which focus on driving immediate conversions.

“In challenging market conditions where every advertising dollar matters, Q-Comm provides a unique opportunity for brands to connect directly with shoppers at the moment of purchase intent,” explains the chief marketing officer of a leading FMCG brand, underlining its growing importance in the marketing mix.

This FMCG major already allocates 5% of its digital advertising budget to Q-Comm and plans to take it to 10 per cent in the next fiscal. “As Q-Comm scales, more advertisers are expected to shift their budgets to leverage its real-time impact. This channel’s ability to deliver both speed and measurable results makes it a critical touchpoint for brands seeking high ROI in competitive markets,” a media planner told e4m.

While traditionally linked to FMCG, beauty, and OTC pharma, the scope is expanding. Categories like electronics and fashion are set to grow as quick commerce addresses last-minute needs.

“Over the next 2-3 years, 10-15-minute deliveries will become the norm, driven by players like Amazon, with their vast assortments, making faster delivery a key advantage,” Shah noted, adding, “As quick commerce gains prominence, advertising models will shift towards these platforms, focusing on quick results. While not purely performance-driven, retail products across various categories will increasingly be sold through Q-Comm, shaping future marketing strategies.”

Faster growth than eCommerce

India is one of the few markets globally where quick commerce companies have found some success, primarily on the account of labour cost arbitrage. The cost of carrying out quick deliveries comes out to be considerably cheaper in India than in other countries and regions such as the United States and the European Union, where wages for delivery workers are much higher.

"By 2025, Q-Comm could significantly challenge traditional retail outlets (kirana stores), offering broader reach and deeper market penetration," says Jaison Thomas, Co-Founder, Blusteak Advertising.

Quick commerce has become one of the most crowded markets in India, thanks to urban consumers with high spending power and a preference for instant gratification. Financial services firm Chryseum reported that India’s Q-comm sector achieved a staggering 73% annual growth rate in FY24, outpacing the e-commerce sector’s 14% growth.

Quick commerce’s Gross Merchandise Value (GMV) surged from $0.5 billion in FY22 to $3.3 billion in FY24, reflecting a seismic shift in consumer behaviour.