Bottom-funnel, top priority: Why are brands carving out dedicated e-commerce mandates?

Industry experts say they have witnessed an increase of up to 25% in e-commerce investments for many brands

e4m by Tasmayee Laha Roy
Published: Apr 25, 2025 9:16 AM  | 5 min read
ecommerce
  • e4m Twitter

As e-commerce emerges as a high-stakes growth engine within digital media, brands are increasingly decoupling it from their traditional marketing mandates and turning to specialist agencies to lead the charge. Giants like Procter & Gamble, HUL, and Samsonite India and many others are now handing out dedicated e-commerce media mandates, signaling a clear shift in strategy.

This shift is driven not just by platform dynamics, but by the changing expectations of return on investment and media efficiency.

Several recent account movements reflect the rising demand for e-commerce-first expertise. 

Starcom, part of Publicis Groupe, is in the final stages of securing the e-commerce media mandate for Procter & Gamble, covering marquee brands like Gillette, Pampers, Olay, and Ariel.

HiveMinds, a Madison World agency, won Samsonite India’s e-commerce and retail media business, with a focus on performance marketing across Amazon and Flipkart. Meanwhile, Interactive Avenues, the digital arm of IPG Mediabrands, secured mandates from Twinings and TTK Healthcare to lead their end-to-end digital commerce strategies, from content to platform optimization.

These are just some of the many examples.

In fact, some premium lifestyle brands like Ray-Ban and Tommy Hilfiger become visibly active only on e-commerce platforms, particularly in the run-up to festive seasons. It’s rare to see their ads elsewhere, highlighting how critical digital retail media has become for targeted, time-sensitive campaigns.

“Retail media dominated by e-commerce is no longer a line item, it’s now a top priority. As brands chase sharper ROI and faster sellouts, they're increasingly decoupling e-commerce from traditional digital mandates. Unlike brand-led social media, this is all about bottom-of-funnel precision, content that converts, and platforms where purchase intent is already high. That’s why more advertisers are turning to performance savvy agencies or carving out new mandates entirely,” said Kumar Awanish, Chief Growth officer, Cheil India

Cheil India, for instance, handles several e-commerce accounts in a dedicated capacity—including brands like TVS Accessories.

“The demand for e-commerce media expertise has surged since the rise of D2C brands during and after the pandemic. It was also a moment in our history where en masse onboarding on marketplaces by first-time digital shoppers happened, which on the other side grew demand for all industries supporting e-commerce—including ours, which is digital marketing. Brands and businesses increasingly recognise that it requires a different skill set and are seeking agencies with proven e-commerce experience to manage it,” said Siddharth Devnani, Co-Founder & Chief Operating Officer, SoCheers.

Why does it make sense to treat e-commerce media as a separate mandate?

“E-commerce media demands a distinct sensibility compared to the rest. Retail media requires an understanding of the nuances of closed-loop proprietary reporting methods of certain marketplaces to take advantage of direct sales attribution without the ambiguity which is the norm in other cases, and it leverages marketplace or first-party data for precise targeting. This specialisation enables brands to optimise performance and maximise ROI at the point of purchase, justifying the need for dedicated mandates and teams,” Devnani added.

“On average, we have witnessed an increase of up to 25% in e-commerce investments for many of our clients,” said Janhavi Iyer, Vice President, Brand Communications, Gozoop Creative. 

“This is largely driven by the visible shift to online shopping, especially post-pandemic. Brands are investing more because they’re realizing the importance of reaching their audience directly where they’re shopping online.”

E-commerce is no longer just a checkbox in a brand’s marketing mix—it has become a strategic focal point. “Understanding its position can provide an edge to brands while planning targeted strategies, aligning with consumer behaviour, tactical ad spending, and eventually gaining improved ROI,” said Shradha Agarwal, Co-founder and Global CEO of Grapes Worldwide.

She added that today’s e-commerce strategies are about more than just performance—they’re increasingly about brand conversation. “We bring media, content, and analytics together because we know that commerce is not only about performance conversion; it’s about brand conversation as well.”

The momentum isn’t just anecdotal, industry data paints an even clearer picture.

According to the dentsu-e4m Digital Advertising Report 2025, advertising on e-retail platforms reached a market size of Rs 11,293 crore by the end of 2024, accounting for 22.93% of total digital media spends. This marks a growth rate of 23.43% over 2023, highlighting the rapid ascent and growing influence of retail media in India's advertising ecosystem.

This surge is being propelled by the aggressive growth and advertising innovation of leading e-commerce platforms. 

Digital retail media, led by the likes of Amazon, Flipkart and Reliance Retail’s growing digital arm, continued to dominate India’s advertising chatter. Amazon India’s advertising revenues reportedly touched the Rs 6,000-crore mark this year clocking a 25% increase over 2023 driven by sponsored products, display ads and brands scrambling for prime positioning during peak festive seasons. Flipkart Ads, which also saw a 30% year-on-year growth in ad revenues, nearly touching Rs 4972 crore.

As more brands recalibrate their digital strategies, e-commerce is fast becoming the new battleground not just for conversions, but for long-term brand relevance. With sharper attribution models, platform-driven innovation, and audiences ready to buy, retail media is no longer a peripheral play. It’s the new core. And agencies that can decode its nuances are making the most of it by helping brands secure maximum ROAS.

 

Published On: Apr 25, 2025 9:16 AM