During the end of the March fiscal year, Amazon Seller Services and Flipkart Internet, two of India’s major e-commerce clocked in advertising revenue which grew significantly to a total of Rs 11,621 crore.

Both e-commerce titans indicate that it is a 33 percent gain over the Rs 8,705 crore from the previous fiscal year.

Amazon Seller Services, which is the Indian marketplace wing of Amazon, saw a significant 24 percent increase in revenue from "other marketplace-related services," or Rs 6,649 crore.

This shows a great rise from Rs 5,380 crore in the last fiscal year.

The majority of revenue from advertising, which is measured by clicks or impressions sent to users, is under the "other marketplace-related services" category.

In FY24, Flipkart Internet, the marketplace division of Walmart-owned Flipkart, had an even more remarkable 50 percent increase in advertising revenue, rising to Rs 4,972 crore from Rs 3,325 crore the year before.

Experts believe that rising internet penetration and the expanding trend of online shopping in India are to blame for the spike in ad revenue for Flipkart Internet and Amazon Seller Services.

These platforms are now able to provide creative ad formats and accurate targeting thanks to improved ad tech capabilities, such as advances in AI and machine learning.

"The significant growth can be credited to the robust advertising capabilities offered by retail media platforms. By leveraging consumer intent signals derived from purchase behaviors and content consumption patterns on the platform, these systems enable the strategic placement of advertiser content. This approach has led to higher engagement rates and improved ROI for advertisers," said digital marketing expert Sajal Gupta.

Due to this, Amazon and Flipkart have emerged as important digital marketing platforms, drawing a wide spectrum of advertisers looking to reach India's growing online customer base.