Ecommerce
Quick-commerce ad rates climb 30-40% and squeeze D2C festive budgets
Brands cut discounts and shift spend to own channels as Blinkit and Instamart visibility costs jump ahead of peak.
Ananya Rao, Editor··4 min read
Ecommerce
Brands cut discounts and shift spend to own channels as Blinkit and Instamart visibility costs jump ahead of peak.
Ananya Rao, Editor··4 min read
Ad rates on quick-commerce platforms have risen 30-40 per cent this year, according to Datum Intelligence, forcing D2C brands to trim festive discounts and ad spends. Platform ad spends by brands are estimated to rise 50 per cent to around ₹2,200 crore. Several founders reported cutting back to protect 5-10 per cent margins.
Typical pre-festive ad inflation was 15-20 per cent; this year’s jump hits harder. Oral-care and snacking founders cited inventory replenishment issues at Blinkit and team churn at Instamart as extra reasons to pull back. Some are moving money to their own D2C sites.
The dark-store shelf slot now costs more than the kirana end-cap ever did. A toy or snack brand that once ran deep discounts to clear festive stock now sells fewer units at better margin rather than fund the higher CPC.
Ad rates have climbed 30-40 per cent, forcing brands to rein in discounts to hold margins.
Large FMCG and national brands can still afford the rates, squeezing pure D2C players on discovery. Quick-commerce platforms gain short-term revenue but risk thinner assortment if smaller brands exit.
Watch brand-level festive GMV on Blinkit, Zepto and Instamart through the next two weeks and any public rate-card revisions. Diwali week will show whether the higher rates stick or reverse.
Filed under Ecommerce·Ananya Rao
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