Groceries were just the beginning. Your 10-min delivery app is now selling your screen time
Apr 2, 2025
auto_awesome
Gaurav Bagur, a reporter at The Ken, dives into the booming advertising world within India's quick-commerce apps like Blinkit and Swiggy. He reveals how these platforms are not just selling groceries but also promoting financial services and gaming apps. With ad revenues skyrocketing to thousands of crores, they are rivaling giants like Amazon. Gaurav discusses the evolving strategies in advertising and the crucial balance between maintaining user experience while maximizing engagement. Tune in for a captivating discussion on this new frontier of digital marketing!
Quick commerce apps are transforming into lucrative advertising platforms, attracting a diverse range of brands due to high user engagement.
The challenge of ad effectiveness tracking poses difficulties for advertisers, highlighting the need for relevant advertising without compromising user experience.
Deep dives
The Dominance of Quick Commerce Apps in Advertising
Quick commerce apps have rapidly emerged as key players in the advertising landscape, capitalizing on their high user engagement and convenience. Apps like Blinkit, Swiggy, and Zepto are seeing significant advertising revenues, attracting not only traditional consumer goods brands but also financial services and real money gaming platforms. With users often checking these apps multiple times a week, advertisers find a wealth of opportunities to reach their target demographic. This environment allows brands to engage users who are already predisposed to spending money, leading to lucrative advertising potential.
The Unique User Engagement of Quick Commerce
The user experience on quick commerce apps is distinct, as the delivery waiting time results in prolonged engagement with the app’s interface, particularly during order tracking. Unlike traditional e-commerce platforms where users tend to leave after placing an order, quick commerce apps keep users engaged while they await delivery, creating a prime opportunity for advertisers. This additional attention creates a unique selling point for ads, allowing brands to capture the user's interest precisely when they are most engaged. As a result, advertisers are more likely to explore these platforms to maximize their reach.
Challenges in Attribution and User Experience
Despite the promising advertising revenue models, quick commerce platforms face challenges, particularly in tracking the effectiveness of ads. Advertisers often struggle with attribution, making it difficult to connect ad exposure to actual consumer behavior and sales, which can hinder their confidence in spending on these platforms. Moreover, as the number of ads increases, there is a fine balance that these apps must maintain to avoid deteriorating user experience. By focusing on delivering relevant ads rather than overwhelming users with numerous promotions, these platforms can enhance engagement and maintain customer satisfaction.
India's biggest quick-commerce apps, Blinkit, Zepto, and Swiggy, have become prime real estate not just for regular FMCG brands but also for financial services, stock-trading apps, and even real-money gaming platforms.
The top three players are already making Rs 3 to 3,500 crore rupees in annual ad revenue. And that, dear listeners, is about half of what Amazon India made from ads in FY24, despite having way more users.
In today’s episode, host Snigdha Sharma speaks to The Ken reporter Gaurav Bagur about how quick commerce apps have become the new battleground for India’s ad money and our attention span.
Tune in.
Question for listeners: Think of the times when you're on your phone everyday and tell us three instances where no one is trying to sell you anything.
You can send in your answers to our Whatsapp number 8971108379. Also, if you have any questions for Gaurav, you can send them on the same number as a voice note or a text message.
Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode