The quick-commerce advertising opportunity is turning out to be promising so far,” Blinkit chief executive Albinder Dhindsa said in Zomato’s shareholder letter for the December quarter.
Blinkit, Zomato’s quick-commerce arm, saw its gross order value (GOV) doubling to Rs 3,542 crore in Q3 FY24, registering a growth of 103 percent year-on-year (YoY) from Rs 1,749 crore clocked in Q3FY23.
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While the company’s total order value grew 103 percent, its revenue from ads outpaced that and registered an increase of 220 percent YoY during the December quarter. But the total revenue from ads was coming off of a low base and the company did not share how much it earned through ads on the platform.
Blinkit said it had 557 advertisers on its platform as of Q3 FY24, an increase of 130 percent YoY from 242 advertisers in Q3FY23. The top 20 advertisers accounted for 40 percent of the total revenue from ads for Blinkit, down from a share of 61 percent during the same period in the previous fiscal. As per reports, the drop in share meant that the Gurugram-based company was diversifying its base and relying less on a select set of advertisers.
Quick-commerce being one of the most transacted categories online, easy-to-use self-serve ad platform and measurable and high return on investments (ROI) on ad spends were the three factors that helped improve ad monetisation for Blinkit.
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