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Flipkart plans to promote brands during customer searches

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Flipkart is looking forward to tap big brands including Microsoft and Samsung to rev up its advertisement business, a unit, which is expected to drive the profitability of the online retailer.

Flipkart will offer to endorse these brands prominently while customers search on its mobile app and website. It will also help them target customers in a better way with the help of data analytics and by tracking consumer behavior.

The brands that sign up for the same will account to almost 70 percent of the advertisement unit’s business. The rest are expected from product listing that are used by the merchants available on the platform, claim a top executive.

The advertisement business of the online retailer hit Rs 80 crore or $12 million revenue run rate annually in the month of February. This business is targeting two to three folds growth per year, claims a person with knowledge of the development.

Flipkart is looking for acquisitions for this unit. This move of going after brands aggressively has helped Flipkart sign up with 100 bands getting in line with the strategy to open brand stores and also focus on the delivery experience.

Following the launch of Galaxy J5 and Galaxy J7 smartphones exclusively on Flipkart last week, the online retailer started monetizing its relationship with Samsung. This is done by selling ads and coming up with a brand store on the mobile app of the e-tailer.

Flipkart started with advertisement last year with product listings at first to help sellers market their products when customers search for the same in the online marketplace. Around 20,000 of the 85,000 merchants on Flipkart have used the same until now. There are 10,000 active campaigns running per month.

Flipkart came up with a brand story ad format late last year letting companies to target specific customers who are browsing for products that are related to their own on the marketplace. It also launched Flipkart Shopper Audience that will help advertisers target audiences out of the mobile app of Flipkart.

 

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