Open the Amazon app to buy a mixer grinder. Before you scroll far, a few listings already carry a small “Sponsored” tag. You probably tapped one without a second thought. That tiny tag now sits at the centre of performance marketing in India. Brands used to push ads at people who were just scrolling. Today they show ads to people who are ready to pay. Amazon and Flipkart built this model, and it is growing fast. Marketers who once split budgets between Google and Meta now hand a big slice to marketplaces. So how does performance marketing actually work inside these platforms? This guide explains it in plain words, with real numbers and practical steps.

AtHobo.Video,we work with brands and creators every day, so we watch this shift closely. Many sellers now ask the same question. Should they spend more on marketplace ads or on social media? The honest answer is both, but the mix matters. Marketplace ads capture demand that already exists. Social and creator content creates that demand in the first place. In this article, we cover market size and the ad tools Amazon and Flipkart offer. We also look at costs and the role of creators. You can read it start to finish or jump to the part you need. Either way, you will leave with clear next steps.

1. Why Marketplace Ads Became Central to Performance Marketing

1.1 The Numbers Behind the Shift

Let us start with the money. According toExchange4media,Amazon India’s ad sales jumped 25% to ₹8,342 crore in FY25. Flipkart booked ₹6,310 crore in the same year. Together, that comes to ₹14,652 crore. The wider market is moving the same way. ATYNY reportprojects retail media in India to grow 25% in 2026 and reach ₹30,360 crore. That would give retail media about 15% of the country’s total ad revenue. Not long ago, this channel was a side experiment. Now it is a line item no performance marketing team can ignore. Also, Amazon and Flipkart lead this space by a wide margin. Any brand selling online needs to understand how their ad systems work.

1.2 Why Buyer Intent Changes Everything

Why do marketers love these ads so much? The answer is intent. On Instagram, someone may see your reel while chatting with friends. On Amazon, the shopper typed “running shoes under 2000” a minute ago. That person wants to buy. Moreover, the platform knows what the shopper searched, viewed and bought before. Brands can then link an ad to an actual sale. In performance marketing, that link is everything. You pay, you see the order, and you measure the return. Industry people call it closed-loop measurement, which simply means the ad and the sale sit on the same platform. Because of this, small and mid-size brands can test budgets with far less guesswork than before.

2. How Amazon Builds Its Ad Business

2.1 Sponsored Ads Inside Search

Amazon’s core ad product is the sponsored listing. A brand bids on a keyword, such as “protein powder,” and its product appears near the top of results. The brand pays only when a shopper clicks. That pay-per-click model feels familiar to anyone who has run Google Ads. However, the buying journey is shorter here. A shopper searches, clicks, and can buy within minutes. Amazon also offers video ads and display ads that reach shoppers at other stages. As a result, a brand can cover discovery to purchase from one dashboard. Smart sellers start with a few high-intent keywords. Then they widen the net once the numbers look healthy.

2.2 Data, Measurement and New Formats

Data is where Amazon pulls ahead. The platform sees searches, clicks, cart additions and repeat orders. Advertisers get reports on sales linked to each campaign. That helps them cut weak keywords and back the strong ones. Amazon is also adding fresh formats. TheExchange4media reportmentions new premium placements, video and Sponsored TV, which push average rates up. Still, rising rates do not mean ads stop working. They mean brands need sharper creative and cleaner product pages. A weak listing wastes every rupee of ad spend. Strong images, honest reviews and a clear price turn clicks into orders. So performance marketing on Amazon is as much about the listing as the ad itself.

3. How Flipkart Is Changing the Game

3.1 Flipkart Ads and the Revenue Jump

Flipkart has made a similar bet. Its ad revenue touched ₹6,310 crore in FY25, as noted earlier. Exchange4media describes ads as a clear topline engine for the company. That is a big shift for a platform once known mainly for discounts and sale days. Flipkart Ads lets sellers promote products in search results and on category pages. Brands can bid for visibility during big events like Big Billion Days. Because shoppers are already in a buying mood, ads there get a warm audience. Still, competition heats up fast in festive weeks. Many sellers raise bids at the same time, so costs climb. Planning budgets early helps you avoid last-minute panic.

Amplify Your Brand,
One Influence at a Time.

Connect with an Expert

3.2 Reaching the Next 600 Million Shoppers

Growth is not slowing down. A Grab On report, cited by Exchange4media, says India could have 600 million online shoppers by 2030. Many of them will likely come from smaller towns. Such shoppers often prefer regional languages and read reviews before they buy. For Flipkart and Amazon, this means more search traffic and more ad slots to sell. For brands, it means listings must speak the local language. Think of a mixer grinder buyer in Meerut or Kanpur. She reads reviews first and compares prices second. Clear photos, short videos and regional-language titles can win her trust before the ad even matters. That trust is hard to buy with bids alone.

4. The Challenges Brands Face

4.1 Digital Shelf Rent and Rising Costs

There is a catch, and every seller feels it. Exchange4media’s piece on digital shelf rent calls the first screen of a marketplace the new retail shelf. It says sponsored placements now work like rent for that shelf. Products that rely only on organic discovery risk sliding down the page. In plain words, you now pay to be seen. Smaller brands feel this most because their margins are thin. Imagine a click costs ₹40 and your profit per order is ₹60. If only one in five clicks converts, you lose money. Every performance marketing budget needs a profit check like this. So track return on ad spend by product, not by campaign. Pause items that never convert. Put money behind your best sellers and watch returns closely.

4.2 Too Many Retail Media Networks

Amazon and Flipkart are no longer alone. An Exchange4media report from March 2026 names Blinkit, Zepto, Swiggy Instamart, Nykaa, Myntra and BigBasket among the rivals. Each one pitches its own audience data and measurement. This is exciting, but it can split budgets too thin. A brand with ₹5 lakh a month cannot be everywhere. So pick the two or three platforms where your buyers actually shop. A skincare brand may lean on Nykaa and Amazon. A snack brand may need Blinkit and Zepto. Test small, compare results every week, and move money toward what works. Spreading thin is the quickest way to learn nothing. That habit matters more than any single platform choice.

5. Where Creators and UGC Fit In

5.1 Content That Lifts Every Ad

Ads earn a click, but content earns the order. This is where creators come in. A shopper who lands on your listing wants proof. Real photos, honest videos and genuine reviews give that proof. Creator videos also work outside the marketplace. A reel can send people to search your brand name on Amazon or Flipkart. Branded searches often cost less than generic ones, so this can lower your cost per order over time. In short, creator content makes performance marketing work harder. At Hobo.Video, we match brands with creators who can make this kind of content. We also help with product feedback and reputation work on marketplaces.

5.2 A Simple Plan to Get Started

Here is a simple way to begin. First, fix your listing. Add clear images, a short video and plain-language bullet points. Second, start small on Amazon and Flipkart with a handful of proven keywords. Third, brief creators to make unboxing and how-to videos in the languages your buyers speak. Fourth, send social traffic to your listing and compare orders week by week. Finally, keep what works and cut what does not. Think of it as a loop, not a one-time setup. None of this needs a huge budget. It needs patience and honest tracking. Brands that follow this routine for a quarter will know which product, keyword and creator pays back.

6. Conclusion

6.1 Key Takeaways

• Retail media is India’s fastest-growing ad channel, projected at ₹30,360 crore in 2026.
• Amazon and Flipkart together booked ₹14,652 crore in ad revenue in FY25.
• Buyer intent is the biggest edge, since shoppers search with a purchase in mind.
• Costs keep rising, so track profit per product and not just clicks.
• Pick two or three platforms instead of spreading your budget across all of them.
• Creator content and honest reviews make every ad rupee work harder.

6.2 Final Thoughts

Marketplace ads have changed performance marketing for good. Amazon and Flipkart booked ₹14,652 crore in ad revenue in FY25, and retail media keeps growing. Brands that treat these platforms as media channels, not just sales counters, will win more shelf space. Still, success depends on more than bids. Strong listings, trusted reviews and creator content decide who gets the order. If you want performance marketing that blends marketplace ads with creator voices, start small. Measure often and learn fast. Keep your numbers honest and your listings fresh. The shelf is getting crowded, yet there is still room for brands that show up with proof.

7. Ready to Grow With Hobo.Video?

The shelf is crowded, but the right creators can make your brand stand out. Brands, register with Hobo.Video today and launch campaigns that turn marketplace clicks into loyal customers. Influencers and creators, join our network of over 2.25 million creators and start working with brands that value real voices. Your next big campaign can begin with one simple sign-up.

About Hobo.Video

Hobo.Video is India’s leading AI-powered influencer marketing and UGC company. With over 2.25 million creators, it runs end-to-end campaigns built for brand growth. The platform blends AI and human strategy to deliver maximum ROI.

Services include:

• Influencer marketing
• UGC content creation
• Celebrity endorsements
• Product feedback and testing
• Marketplace and seller reputation management
• Regional and niche influencer campaigns

Trusted by top brands like Himalaya, Wipro, Symphony, Baidyanath and the Good Glamm Group.

Want your brand growth to actually feel real this time?Talk to us.

Influencer life gets better with the right platform.Start growing now.