After Search and Social, it's time for Commerce Advertising

As Flipkart gets ready to launch another innovative ad solution called the 'Brand Story Ad Format', to help brands tell their stories on Flipkart, it is clear that Commerce advertising is set to be the new source of revenue in e-commerce

Rashi Bisaria | Delhi | December 7, 2015

E-commerce bigwigs in India have one goal at present- to turn profitable. Snapdeal, Amazon and Flipkart, the three contenders for the top spot are looking at different strategies that might lead to profitability. In their quest to reach that final goal, each is looking at different models, and ways to drive up the revenue.  The advertising-driven revenue model is most appealing to them. This has resulted in a mini-revolution and it's called Commerce advertising.

As Flipkart gets ready to launch another innovative ad solution called the 'Brand Story Ad Format', to help brands tell their stories on Flipkart, it is clear that Commerce advertising will be the new source of revenue in ecommerce. Flipkart feels confident about its own capabilities and knows it can provide what advertisers are looking for. “We have the capability to go to the advertisers who are looking for reach, right impact and full funnel attribution,” says RaviGarikipati, Flipkart's Entrepreneur- in- Residence.

The brand story ad format provides a carousel- like, strip ad experience. It is engaging story- telling which,Garikipati says, is not intrusive. So how Flipkart is uniquely equipped to provide this advertising solution to brands? “We are big in m-commerce and embarked on a mobile first approach and have become a leader in that space. We have close to 300 internet users on smartphones and that is going to get bigger as well. The reach is immense. We have been in the business and built commerce profiles. That's the data advantage. We can tie campaign efficacy to eventual sales impact. That is what we call the full funnel access view,” responds Garikipati.

Flipkart has been working on its online advertising business for some time now. Earlier this year, it introduced the Product Listing Ads on its app to enable brands to reach out to more customers. This solution has been around for two quarters and is doing well. Flipkart is also extending its compelling offerings to third party brands that don't retail on the platform yet but can make use of the audience by engaging with them. The destination for them could be lead generation. That is the extension of the brand story to the third party. The e-commerce giant has other plans too. In the near future, it wants to go beyond its own app and into the network to build its own private publishers, retargeting these audiences elsewhere for a stronger brand recall.

Garikipati feels the world is moving towards 'accountable' advertising. “CMOs will increasingly be held accountable for driving the numbers on the sales and it's no longer just about awareness. We attribute the value of any given campaign and demystify many things. Measurability is what CMOs are looking for as they need to explain the efficacy of any campaign in a quantifiable fashion,” he says.

Flipkart's capability for targeting and attribution could be its biggest strengths. “We have a rich share of consumer intent data and commerce profiles that help us find user segments for targeted advertising. This leads to a much personalised experience,” adds Garikipati.

Six months ago Flipkart had acquired AdiQuity Technologies to establish itself as an ad platform. Just a week back, Snapdeal unveiled its ad platform strategy for their seller community which it will unfold in phases. The close rivals are following in the footsteps of Chinese e-commerce platform Alibaba Group Holding which depends heavily on ads.

When asked about Snapdeal's initiatives in the advertising format domain, Garikipati was quick to respond, “A lot of people have many resources at their disposal and to bring all that together to a meaningful, impactful outcome calls for a lot of vision and focus. If it's a trend then we are definitely starting the trend.”

The three problems that brands are looking to solve today are: the problem of reach, impact and transparency. Flipkart's capabilities in m-commerce, the rich data it possesses about its audience and the latest offering, the Brand Story Ad format seem to strengthen its position as an ad platform for brands.

Garikipati says, “Commerce advertising is the holy grail and the new frontier.” If that is the case, then the next few months will be critical for Flipkart and its rivals as they usher in this revolution.

The Brand Story Ad Format will have a soft launch in January and will be generally available in February.

Info@BestMediaInfo.com

Info@BestMediaInfo.com