Due to increased purchase conversions and a structural shift in online growth tactics, Indian consumer brands are quickly moving their digital advertising dollars from traditional e-commerce platforms like Amazon and Flipkart to quick-commerce apps.
Brands Shift Digital Advertising to Quick-Commerce Platforms
As sales velocity and return on ad expenditures increase significantly, companies in the food, health, and personal care sectors report that they are now devoting up to half of their digital ad spending to quick-commerce apps like Blinkit, Swiggy Instamart, and Zepto.
The company’s founder, Avnish Chhabria, told Mint that Wellbeing Nutrition, a manufacturer of protein powder and supplements supported by FMCG giant Hindustan Unilever Limited (HUL), currently spends 55% of its marketing budget on rapid commerce, up from 30% six months ago.
Rising Marketing Spend on Rapid Commerce
“As performance has much improved and the economics are more favorable, we are tactically boosting spends on rapid commerce,” Chhabria stated. Since July 2025, Wellbeing Nutrition’s monthly sales have increased fivefold to ₹5 crore as compared to the six months prior.
According to its founder, Shankar Prasad, Plum Goodness, a personal care brand supported by Unilever Ventures, regularly adjusts its spending patterns to channels that yield better purchase results. In recent months, rapid commerce has outperformed traditional e-commerce channels.
🛒 Quick-Commerce Ad Spend Surge
- Ad Budget Allocation: Up to 50–55% of digital spends
- Key Platforms: Blinkit, Swiggy Instamart, Zepto
- Main Advantage: Higher conversions & faster purchases
- Target Sectors: Food, wellness, personal care
- ROI Impact: Lower CPA and improved ROAS
Competition for Visibility on Quick-Commerce Apps
“Our marketing expenditures have naturally increased in recent months due to the quiet but fierce competition among wellness and personal care firms for visibility on quick-commerce platforms,” Prasad stated. Prasad stated that as revenues from these platforms have multiplied, quick-commerce ad spends as a percentage of sales have increased significantly, though he did not reveal exact spending estimates.
Bigger consumer goods companies are doing the same. In response to Mint’s questions, Marico, the parent company of Parachute and Saffola, stated that fast commerce has made a substantial contribution in recent quarters, driven by shifting consumer behavior and metro-led use cases. In fiscal year 2025 (FY25), the channel made about 3% of Marico’s business in India.
Fast Commerce Gains Importance for Large FMCG Firms
“The channel offers exposure to niche, premium, and occasion-led concepts as well as quicker feedback loops and shorter trend cycles.” A Marico representative continued, “This has motivated us to go toward more agile innovations, establish stronger pipelines matched to new trends, and design formats suitable exclusively for this channel.” Regarding revenue details, the business declined to respond.
During the September-quarter earnings call, Mohit Malhotra, the CEO of real juice manufacturer Dabur India, stated that the company plans to boost its advertising spending in the upcoming quarters across general and contemporary trade channels, including rapid commerce. He had stated at the time, “We will consistently make an endeavor to improve the entire advertising and promotion spend coming forward by investing in brand and distribution.”
Ad Market Growth Fuels Quick-Commerce Platforms
Sales via e-commerce platforms, particularly fast commerce, are anticipated to increase by double digits, according to the company’s December-quarter business report submitted to the exchanges.
At a time when analysts predict the segment’s ad market will increase significantly over the next two years, the trend emphasizes the growing role of advertising as a revenue driver for rapid commerce firms. Sponsored product listings, highlighted banners, and in-app prompts during peak hours are the most popular ad forms.
⚡ Why Quick-Commerce Ads Work
- User Intent: High purchase readiness
- Conversion Rates: 10–15% higher than marketplaces
- Ad Formats: Sponsored listings & in-app nudges
- Decision Time: Faster buying behavior
- Efficiency: Lower cost per acquisition
According to Siddharth Jhawar, country manager at ad-tech provider Moloco, quick-commerce ad spend has increased by over 40% to nearly $700 million today from roughly $500 million in the six months prior. In actuality, over the previous three years, spending has almost doubled.
“As quick commerce continues to take a larger share of e-commerce, we can expect the share of quick-commerce ad spends to double in the next two to three years,” Jhawar stated.
Advertising Revenue Growth and Market Estimates
According to a December estimate by advertising agency WPP, retail media, or advertisements sold by merchants on their own platforms, produced around ₹25,000 crore in ad revenue in 2025, making it the fastest-growing advertising channel.
According to the survey, as competition for user attention and order frequency increases, quick-commerce companies Blinkit, Zepto, and Instamart are expanding ad income at growth rates exceeding 100% year over year, albeit from smaller bases.
Mint’s questions went unanswered by Blinkit, Swiggy Instamart, Zepto, and BigBasket. The greater conversion rates, or real purchases, observed on quick-commerce platforms in comparison to traditional e-commerce and other digital channels, according to brands, are one of the main causes of this change in advertising budgets.
Higher Conversions Drive Budget Reallocation
According to Jhawar of Moloco, “advertisements are translating into speedier judgments and immediate sales because consumers often arrive on these applications with high purchase intent and limited time to browse.”
Conversions, or the rate at which ads result in actual transactions, are at least 10–15% greater than on other horizontal online commerce platforms, according to Chhabria of Wellbeing Nutrition. “Quick commerce appears to be a superior return on investment because it is now producing considerably greater conversions at a cheaper cost per acquisition (CPA) rate.”
Limits and Challenges of Quick Commerce
According to Plum’s Prasad, rapid commerce is therefore increasingly viewed as a high-efficiency marketing medium as well as a fulfillment channel, especially for repeat purchases and the introduction of new products.
The amount a company spends on advertising to bring in a single paying client or completed deal is known as the cost per acquisition.
According to Anil Kumar, CEO of market research company Redseer, quick commerce also provides more detailed and localized information that is frequently useful for ad targeting and positioning. “To make sure they do not lose the quick-commerce wave, companies are looking at investing a lot on analyzing data and positioning correctly.”
However, difficulties still exist. There is a spending ceiling for companies because quick commerce is still smaller than marketplaces like Amazon India and Flipkart, with a restricted range suitable for fast-moving goods.
Amazon and Flipkart Still Dominate Scale
There is now a cap on the amount of money that businesses can spend on fast commerce because its audience is smaller than that of larger platforms. Additionally, the audience is primarily needs-driven, so there is more room for new product discovery on sites like Amazon, according to Chhabria of Wellbeing.
According to their financial disclosures, Amazon India and Flipkart generated upwards of ₹14,000 crore in income in FY25, continuing to dominate the country’s retail media scene.
Additionally, in an effort to gain control over pricing and increase profits, businesses are actively pursuing the expansion of their own websites as a profitable sales channel. According to Prasad, the majority of Plum’s marketing spend goes toward its own website, which still generates the majority of its revenue.
Frequently asked questions
1. Why are companies moving their advertising budgets from Flipkart and Amazon to fast commerce?
Because quick-commerce platforms’ high user buy intent results in higher conversion rates, quicker purchases, and better return on ad spend (ROAS).
2. What are the most advantageous quick-commerce platforms?
Ad revenues are rising quickly on platforms including Blinkit, Swiggy Instamart, Zepto, and BigBasket, with some reporting increases of 100% or more year over year.
3. What is the cost of rapid commerce advertisements for brands?
Compared to just six months ago, some firms now devote up to 50–55% of their digital marketing budgets to rapid commerce.
4. What kinds of advertisements are most effective on quick-commerce apps?
Sponsored product listings, prominent banners, and in-app prompts that promote immediate purchases during peak buying hours are the most successful models.
5. Are Flipkart and Amazon still useful for advertising?
Indeed. Although their share of incremental ad spend is under pressure, they still control the majority of retail media income and provide greater product discovery and broader audiences.
Conclusion
In India, quick commerce is quickly changing from a delivery route to a platform for high-performance advertising. Brands are shifting their expenditures from traditional e-commerce behemoths to instant-delivery apps due to increased purchase intent, quicker feedback loops, and less acquisition costs.
The development indicates a structural shift in digital marketing strategy, particularly for FMCG, wellness, and personal care firms, even though Amazon and Flipkart continue to dominate at scale. India’s digital ad environment would see a significant increase in rapid commerce over the next two to three years.
Disclaimer:
This content is for informational purposes only and is based on publicly available data and statements. It does not constitute financial, investment, or business advice. Figures and trends mentioned are subject to change.
