Flipkart and Hotstar launch video ad platform: Can FK mirror Alibaba's strategy in digital advertising?

To strengthen its advertising revenue, Flipkart has jointly launched a video advertisement platform - Shopper Audience Network with Hotstar. The new platform would enable brands or marketers to place targeted advertisement through personalised video advertising on country's largest streaming site - Hotstar.

Flipkart would leverage its database and pass on intelligence to brand for placing highly targeted ads.

Since Hotstar streaming platform entices millennials, young and mid-aged audience, Shopper Audience Network is slated to attract many lifestyles, electronics (including smartphones) and fashion brands and services on the platform.

With 100 million registered consumer base and a billion impression every month, Flipkart has already been offering independent video advertising solution through Flipkart Shopper Audience Network. It offers ad placement on premium network inventory using Flipkart exclusive consumer data.

Flipkart eyes to emerge strong advertising platform akin to Alibaba and Amazon. While Alibaba had made over $15 billion from its mobile revenue in China in 2017, Jeff Bezos-led company did $2 billion worth advertising revenue during the same period.

Over the years, Alibaba ecosystem in China has built an unprecedented clout on overall digital advertising space. According to an eMarketer report, the Jack Ma-founded company had commanded over 40 per cent mobile advertising spent in China in 2017

Following the footstep of Alibaba and Amazon, Flipkart has been working towards ramping up its advertising solution. The Kalyan Krishnamurthy-led company has set a $200 million advertising revenue in current fiscal. In FY18, it was estimated that it had made $100 million from advertising solutions.

Flipkart aspires to emerge as the third largest digital advertising solutions for businesses after Google and Facebook. India’s digital video advertising market is likely to grow about 35 per cent from last year to touch Rs 2,200 crore this year, according to a report by Vidooly.

About Rs 500-600 crore were spent alone on YouTube in 2017.

Since Alibaba has pioneered digital advertising business in China, it would like to repeat the same playbook through Paytm and its network effect in India. As Flipkart and Amazon are also seeing hefty revenue via their advertising solution, it would be exciting to see who grab larger digital advertising pie.

The development was first reported by Mint.