Flipkart, Amazon reduce ad spends on Google

Google's upcoming e-commerce platform is likely to be a threat.

MUMBAI: With Google launching an e-commerce platform in the near future, the country’s largest online retail stores, Flipkart and Amazon India, have slashed advertising spends on the web-search company. Both the players see this as a serious threat, as a Mint report quoted two people, familiar with the matter.

According to a person quoted above, Flipkart and Amazon have reduced spending on Google by more than 30 per cent in the previous three months compared to months before and shifted some of that ad spending to other platforms. Until last year, the two online retailers used to spend hundreds of crores of rupees buying ads on Google.

Google’s interest in e-commerce stems from its worry that some shoppers are going straight to Amazon to search for products rather than using Google. If this trend continues, it could threaten Google’s core business of digital advertising. Amazon is already generating billions of dollars in ad revenues in the US.

The people added that, Google was keen on investing in Flipkart because it wanted a strategic partner to help it with its e-commerce push. However, Google wanted a much closer collaboration than Flipkart and its new owner, Walmart, were willing to offer.

Google’s e-commerce push and the rising importance of Flipkart and Amazon in digital ads are the latest examples of how intertwined the tech business has become and how internet firms are increasingly encroaching on each other’s turf.

Google’s retail entry may result in higher losses for existing e-commerce firms. The e-commerce market grew 23 per cent to $18 billion in 2017, according to RedSeer Consulting. India’s e-commerce market is a fraction of the size of China’s or the US. Yet, Flipkart, Amazon India and Paytm Mall bear huge losses while specialty e-commerce firms are struggling to grow sales quickly.

A new serious entrant with deep pockets like Google will strengthen the view that India’s e-commerce market is overcrowded.

Latest Reads
1700 Mumbaikars cycle to raise awareness for mental health

Mpower, a pioneer in Indian mental healthcare from The Aditya Birla Education Trust, today returned with its fourth edition of Aditya Birla Health Insurance Ride to Mpower, a cycle ride to create awareness and stamp out the stigma associated with mental health illnesses.

MAM Marketing MAM
Asian Paints, Post Office Studios present the colourful trends of our time

Post Office Studios conceptualised and produced five animated films to launch Asian Paints’ Colour Next series this year, which were released at the country's India Design ID.

MAM Marketing Brands
ZEEL launches an exclusive campaign for its english cluster #WhereIsMyChannel

With TRAI initiating the implementation of the MRP regime, consumers now have a choice to select the packs and channels that best meet their content needs. While the broadcasters are busy building their bouquets and communicating the prices to the viewers, Zee English Cluster has taken a rather...

MAM Marketing MAM
Van Heusen presents 'Carry Your World' campaign with Jacqueline Fernandez

Van Heusen India’s leading power dressing brand from Aditya Birla Fashion and Retail Ltd has launched a comprehensive `Carry your World’ campaign featuring India’s leading Bollywood star Jacqueline Fernandez across 60 cities for two months.

MAM Marketing MAM
Gits Food's launches new 'Sawal hi nahi banta, yaha banta hai Gits!' campaign

Gits Food Products Pvt Ltd has unveiled its latest ‘Sawal hi nahi banta, yaha banta hai Gits!’ campaign. Conceptualised by Lowe Lintas, the fresh new TVCs contain two delectable stories centered on its breakfast and snack mixes.

MAM Marketing MAM
MyTeam11 Launches Campaign on 25 Television Channels Targeting Upcoming T20 and World Cup Cricket Season

India’s leading fantasy sports website MyTeam11, today announced a collaboration with 25 Television channels across the music, news, sports and knowledge sharing genres among others, in a massive campaign targeting the upcoming T20 and World Cup cricket season.

MAM Marketing MAM
Festival Tourism is driving Travel Demand Thomas Cook India observes 20% growth in bookings

Thomas Cook (India) Ltd., India’s leading integrated travel and related financial services company, has reported a strong growth in ‘Festival Tourism’ as the Indian traveller seeks to combine spiritual elements with unique cultural experiences. This year, the Kumbh Mela and Holi have proved to be...

MAM Marketing MAM
Consumer confidence plummets in March 2019

The India Primary Consumer Sentiment Index (Consumer Confidence), as measured by Thomson Reuters in partnership with Ipsos, has nosedived by 6.8 percentage points in March 2019.

MAM Marketing MAM
Colgate remains India’s #1 Most Trusted Oral Care brand, for the 8th consecutive year, in Nielsen’s consumer survey

Colgate-Palmolive (India) Limited, the market leader in Oral Care, has been ranked as the Most Trusted Brand in the Oral Care category for the 8th year in a row, as per the India’s Most Trusted Brands Survey 2018, conducted by Nielsen and commissioned by Economic Times - Brand Equity.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories