Advertising costs on India’s quick-commerce platforms have increased sharply, forcing consumer brands to reconsider how much they spend on digital visibility. Platforms such as Blinkit and Swiggy Instamart have become important sales and customer-acquisition channels, but rising competition for sponsored placements is making it harder for brands to generate attractive returns on advertising investments.
According to market research firm Datum Intelligence, advertising rates on quick-commerce platforms and horizontal e-commerce marketplaces such as Amazon and Flipkart have increased by 30–40% over the past six to 12 months. At the same time, brands are expected to increase their quick-commerce advertising budgets by 25–35% during the 2026 festive season. The rising costs are pushing companies towards targeted campaigns, repeat purchases and alternative marketing channels rather than simply increasing advertising expenditure.
Quick Commerce Advertising Costs Rise 30–40%
The rapid expansion of quick commerce has created a new advertising market for consumer brands.
Companies increasingly pay platforms for sponsored product placements, search visibility and promotional campaigns to ensure their products appear prominently when customers browse shopping applications.
However, as more brands compete for limited advertising inventory, the cost of securing visibility has increased.
Datum Intelligence estimates that advertising rates across platforms such as Blinkit, Swiggy Instamart, Amazon and Flipkart have risen by as much as 30–40% over the past six to 12 months.
The increase is particularly significant for smaller consumer brands that operate with limited marketing budgets and relatively narrow profit margins.
Brands that previously relied on aggressive advertising to attract new customers are now evaluating whether additional spending can generate enough sales to justify the expense.
Key advertising market trends:
| Metric | 2026 estimate |
|---|---|
| Increase in advertising rates | 30–40% |
| Expected festive advertising budget growth | 25–35% |
| Quick-commerce advertising market growth | 50% |
| Estimated festive quick-commerce ad spending | ₹2,200 crore |
The figures are based on estimates from Datum Intelligence cited in the Mint report.
Quick-Commerce Advertising Spending Expected to Reach ₹2,200 Crore
Despite rising costs, quick-commerce advertising is becoming a larger part of India’s digital marketing ecosystem.
Datum Intelligence estimates that advertising expenditure on quick-commerce platforms will increase 50% to approximately ₹2,200 crore during the 2026 festive period.
Brands are attracted to these platforms because customers often visit shopping applications with an immediate purchasing requirement.
Unlike traditional digital advertising, which may generate awareness without producing an immediate transaction, quick-commerce advertisements can reach consumers while they are actively browsing products.
This makes the platforms particularly useful for categories such as packaged food, beverages, personal care, dairy products, snacks and household essentials.
However, the growing number of advertisers is creating competition for prominent placements.
Satish Meena, an analyst at Datum Intelligence, said brands could improve advertising returns through early inventory booking, introducing new festive categories and making product catalogues easier for AI assistants to understand.
The changing economics mean that brands increasingly need to evaluate advertising based on measurable business outcomes rather than visibility alone.
Epigamia Becomes More Selective With Advertising Budgets
Dairy and yoghurt brand Epigamia is among the companies adjusting its approach to quick-commerce advertising.
The channel contributes almost two-thirds of the company’s sales, while more than half of its marketing expenditure goes towards quick-commerce platforms.
Despite this dependence, the company is not automatically increasing its advertising budget as competition intensifies.
Ajinkya Poundrik, chief growth officer at Epigamia, told Mint that the company allocates marketing expenditure according to specific objectives.
These include:
- Acquiring new customers.
- Encouraging consumers to try new products.
- Increasing repeat purchases.
- Supporting product launches.
- Promoting products during specific consumption occasions.
Epigamia also uses quick-commerce platforms to reach consumers around breakfast, evening snacking and post-meal dessert occasions.
The company has worked with platforms on campaigns linked to festivals such as Janmashtami, Navratri and Ramzan, along with promotional programmes focused on protein products.
However, it continues to invest in general trade and modern retail through store visibility and product sampling.
The approach reflects a broader shift among consumer brands: quick commerce remains important, but advertising budgets must be linked to specific commercial objectives.
Milky Mist Adjusts Spending Based on Platform Performance
Listed dairy company Milky Mist is also taking a selective approach to advertising expenditure.
Quick commerce contributes approximately 17–18% of the company’s revenue, making it an important distribution and sales channel.
However, the company does not follow a fixed advertising allocation across different platforms.
Chief executive K. Rathnam said Milky Mist adjusts spending based on the performance of individual platforms and priority products, including new launches.
This allows the company to increase advertising expenditure where it sees stronger results rather than distributing budgets equally across all platforms.
The strategy is also linked to the expansion of quick-commerce services into additional cities.
As platforms enter new markets, brands may gain access to additional customers without relying entirely on traditional retail expansion.
Milky Mist expects to benefit from this geographical growth while keeping its marketing expenditure under control.
Brands Explore Alternatives Beyond Quick-Commerce Platforms
For some consumer businesses, rising advertising costs are making alternative distribution and marketing channels more attractive.
Nimida Group, the parent company of snacking brand WellBe, is among those reconsidering its dependence on quick-commerce advertising.
Founder and chief executive Gaurav Manchanda said the company has not significantly increased its e-commerce advertising budgets because returns have been declining.
One challenge is competition from private-label products launched by the platforms themselves.
Brands are therefore competing not only against other consumer companies but also against products promoted by the shopping platforms.
WellBe has responded by shifting its advertising focus from customer discovery towards repeat purchases.
Instead of spending heavily to attract entirely new customers, the company is concentrating on existing consumers and markets where it already has an offline presence.
The company is also exploring vending machines at airports and offices as an alternative distribution channel.
Manchanda believes this approach could provide better returns than spending the same amount on quick-commerce advertising.
The development highlights a growing concern among consumer brands: advertising costs may rise faster than the additional revenue generated by promotional campaigns.
Private Labels Increase Competition for Brands
The expansion of quick commerce has created new opportunities for established consumer companies and direct-to-consumer businesses.
However, platform-owned private labels are adding another layer of competition.
Private-label products allow platforms to sell goods under their own brands, giving them greater control over pricing, product positioning and promotional strategies.
For independent brands, this can create additional pressure when competing for visibility inside the same application.
The challenge becomes particularly significant when platforms control both the advertising inventory and the products competing for customer attention.
As a result, consumer companies are becoming more cautious about spending heavily on sponsored placements without clear evidence of incremental sales.
Brands may increasingly prioritise product differentiation, customer loyalty and repeat purchases rather than relying exclusively on paid visibility.
The Bigger Picture
The rise in quick-commerce advertising rates reflects the changing economics of India’s digital retail industry.
Platforms have become important consumer discovery channels, allowing brands to reach shoppers close to the point of purchase. However, as more companies compete for advertising space, the cost of acquiring customers through these platforms is increasing.
The shift also raises questions about how much value brands can generate from quick-commerce advertising over the long term.
For large consumer companies, higher advertising expenditure may be manageable because of their stronger distribution networks and marketing budgets. Smaller brands, particularly direct-to-consumer businesses, may find it harder to maintain profitability when advertising costs, platform commissions and operating expenses increase simultaneously.
Looking Ahead
Quick-commerce platforms are likely to remain important advertising channels as India’s instant-delivery market expands. However, brands are expected to become more selective about where they spend, focusing on campaigns that generate measurable customer acquisition, product trials and repeat purchases. Alternative channels such as vending machines, offline retail and direct-to-consumer websites could receive greater attention as companies look to diversify their marketing strategies.
For the quick-commerce industry, the next challenge will be maintaining advertiser confidence while increasing monetisation. Higher advertising rates can generate additional revenue for platforms, but if brands cannot achieve sustainable returns, they may reduce spending or move their budgets elsewhere. The balance between platform monetisation and advertiser profitability will become increasingly important as competition for digital retail advertising intensifies.
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