Introduction

Quick Commerce (Q-commerce) has reshaped how consumers access daily essentials—promising delivery within minutes. Apps like Blinkit, Zepto, and Swiggy Instamart have capitalized on this trend, building hyper-local supply chains to deliver everything from groceries to medicines, instantly.

In this race against time, traditional advertising methods fall short. Consumers decide in seconds, and marketers need tools that match this urgency. Enter Demand Side Platforms (DSPs)—automated advertising tools that buy ad space in real time across websites and apps. For Q-commerce, DSPs are not just useful—they’re essential for survival.

 

What is Quick Commerce?

Quick commerce delivers goods in under 30 minutes, catering to time-starved urban consumers. Using micro-fulfillment centers and gig delivery fleets, Q-commerce thrives in high-density areas.

Several factors fuel its growth:

  • Mobile-first behavior: Smartphones and payment apps make ordering seamless.

  • Urbanization: Dense cities allow for efficient last-mile delivery.

  • Youth demographics: Gen Z and millennials, who value speed, are its core users.

The global Q-commerce market, valued at $46 billion in 2023, is projected to hit $79 billion by 2030. In India, GMV is expected to touch $6 billion by FY2025.

But rapid growth brings high stakes—ads need to hit the right user, at the right place, at the right moment. That’s where DSPs shine.

What is a Demand Side Platform (DSP)?

A DSP is a programmatic advertising platform that automates the buying of digital ads across websites, mobile apps, and connected TV. It enables brands to:

  • Bid for ad space in real-time (RTB)

  • Target specific users based on behavior, location, or device

  • Optimize ad spend automatically

Think of a DSP as a real-time “ad broker” working 24/7—choosing where to show your ad, how much to pay, and to whom, all within milliseconds.

 

Why DSPs Matter in Q-Commerce

Demand-Side Platforms (DSPs) play a crucial role in the fast-paced world of Q-commerce by enabling precise targeting, personalized creatives, and real-time analytics. Here’s how DSPs can elevate Q-commerce strategies:

Hyperlocal Targeting

Q-commerce delivery areas are typically within a few kilometers. DSPs enable hyperlocal ad targeting, ensuring ads reach only users within a specific radius of your hubs.

  • For example, a 10-minute grocery delivery app can target users within a 3 km radius, reducing ad spend and increasing conversions.

Dynamic Creatives and Personalization

Q-commerce thrives on agility, with promotions that shift by the hour. DSPs use Dynamic Creative Optimization (DCO) to tailor ads in real-time:

  • Show weather-specific ads, like “Hot soup delivered in 10 min!” during monsoons.

  • Promote breakfast items in the morning and snacks in the evening.

  • Customize offers based on past user behavior or purchase history.

This real-time relevance enhances user engagement and drives higher conversion rates.

Multi-Channel, Multi-Format Reach

Q-commerce audiences are active across various platforms, and DSPs ensure synchronized campaigns across:

  • Display banners

  • In-app ads

  • Video (YouTube/CTV)

  • Audio (Spotify/Gaana)

  • Digital out-of-home (DOOH)

By delivering consistent brand messaging across multiple channels, DSPs help maintain brand recall.

Real-Time Analytics and Attribution

Q-commerce relies on rapid feedback loops. DSPs provide dashboards for tracking:

  • Impressions, clicks, and app installs

  • Orders and Return on Ad Spend (ROAS)

With real-time data, you can adjust budgets, creatives, or targeting instantly. For instance, if evening ads perform better, DSPs can reallocate budgets automatically for higher ROI.

DSPs are indispensable in scaling Q-commerce with precision, efficiency, and adaptability.

 

Strategic Benefits for Quick Commerce Brands

Faster Customer Acquisition
 DSPs are effective at capturing impulse-buying moments. For example, if a customer runs out of eggs at 7 PM, a well-placed ad offering delivery in 10 minutes can result in an instant conversion.

Improved ROI
 AI-driven bidding and granular targeting help DSPs minimize ad spend waste, directing budgets to high-conversion opportunities and improving efficiency.

Full-Funnel Marketing
 DSPs enable seamless management of the entire customer journey:

  • Brand awareness: Use video ads to introduce your brand to new audiences.

  • Retargeting: Display banners re-engage cart abandoners and encourage purchases.

Customer Retention
 Retarget lapsed users with personalized offers. Regular customers can be reminded to restock frequently purchased items or join loyalty programs. All of this can be automated within the DSP platform.

 

Top DSPs for Q-Commerce Brands

Key DSPs used by Q-commerce companies worldwide and in India include:

  1. Google DV360
  • Offers access to Google Ads, YouTube, and an extensive network of websites.

  • Best for: Wide reach, cross-channel integration, and advanced analytics.

  1. The Trade Desk (TTD)
  • Independent DSP providing access to the open internet and transparent operations.

  • Best for: Custom audience segments, predictive bidding, and global scalability.

  1. Amazon DSP
  • Leverages Amazon’s shopping data for highly intent-driven targeting.

  • Best for: Commerce-focused campaigns, particularly for groceries and CPGs.

  1. Criteo Commerce Max
  • Specializes in retargeting and dynamic product advertising.

  • Best for: Driving repeat purchases and increasing cart values.

  1. Regional Players (India/APAC)
  • RevX: Focused on mobile-first retargeting for apps.

  • Xandr: Microsoft-owned DSP with integrations across MSN, Outlook, and Xbox.

  • Geniee: A localized DSP catering to Asia-Pacific markets.

Many Q-commerce brands combine platforms, using Google DV360 for awareness, The Trade Desk for open web reach, and Criteo for retargeting strategies.

 

Implementation Challenges with DSPs

While Demand-Side Platforms (DSPs) offer immense potential, they come with their share of challenges. Proper planning and understanding are crucial for maximizing returns while addressing these obstacles:

Data Integration

Tracking attribution across web and mobile platforms is a complex task. DSPs must integrate seamlessly with app analytics tools and Customer Relationship Management (CRM) systems to ensure accurate tracking of user actions. Without this integration, it’s challenging to link ad spend to conversions or customer journeys effectively.

Creative Load

Q-commerce thrives on rapid, dynamic campaigns, often requiring multiple ad sizes, formats, and versions. Managing these creative assets can be overwhelming, particularly when inventory changes frequently. For example, promoting seasonal products or flash sales might require dozens of tailored creatives in real time. Brands must invest in creative teams or tools capable of scaling this demand.

Ad Fraud and Brand Safety

The digital advertising ecosystem is susceptible to fraud, such as fake impressions or bot-driven clicks. Ensuring brand safety is another concern, as ads placed on inappropriate websites can harm a company’s reputation. To counter these issues, DSPs should offer robust fraud detection mechanisms, access to brand-safe inventory, and partnerships with trusted third-party verification providers.

Skill Gaps

Using a DSP effectively requires specialized knowledge, including audience segmentation, bidding strategies, and performance optimization. Many businesses face challenges due to limited internal expertise. Initial investments in training or partnerships with experienced agencies can bridge this gap, enabling brands to unlock the full potential of DSPs.

Despite these hurdles, the ROI from well-executed DSP campaigns can justify the upfront effort, offering significant benefits in terms of targeting efficiency, customer acquisition, and revenue growth.

 

Future Trends in DSPs

As technology continues to evolve, DSPs are poised to become even more impactful, with advancements reshaping how brands approach advertising in the Q-commerce space:

AI-Powered Ads

Artificial intelligence is already playing a significant role in ad optimization, but its capabilities are set to expand. Future DSPs will leverage AI to create ad copy, design creatives, and optimize campaigns in real-time without human intervention. For example:

  • AI could craft personalized ads tailored to individual users based on their browsing history, preferences, and purchase behavior.

  • A grocery delivery app might dynamically generate ads suggesting specific products that align with the user’s past orders or current local weather conditions.

This level of personalization will enhance engagement and conversion rates, enabling brands to connect with users on a more granular level.

Retail Media Integration

Q-commerce apps may soon transform into ad platforms themselves, allowing brands to advertise directly within these environments. Similar to how Amazon integrates advertising into its ecosystem, platforms like Zepto or Blinkit might follow suit. For instance:

  • A coffee brand could advertise its instant coffee products on a Q-commerce app’s homepage, targeting users searching for morning essentials.

  • DSPs would play a pivotal role by integrating with these retail media networks, enabling cross-platform ad management for brands.

This trend underscores the potential for Q-commerce platforms to become central hubs for both shopping and advertising.

Voice and In-Car Ads

The rise of voice assistants and connected cars is creating new opportunities for DSPs. Brands will soon be able to deliver ads via these emerging channels, reaching users during pivotal moments:

  • A user asking Alexa, “Where can I get groceries delivered now?” might hear a sponsored recommendation from a Q-commerce brand.

  • In-car screens during a drive could display ads for nearby Q-commerce hubs or restaurants, encouraging impulse purchases.

These channels offer highly contextual advertising opportunities, ensuring brands reach users when they are most likely to take action.

Sustainability Metrics

As sustainability becomes a key consideration for consumers and businesses alike, DSPs are likely to incorporate carbon impact metrics into their platforms. This will enable brands to:

  • Track and report the environmental impact of their ad campaigns.

  • Optimize campaigns to reduce energy consumption, such as serving lighter ad formats or targeting eco-conscious audiences.

Incorporating sustainability into marketing strategies not only aligns with consumer expectations but also positions brands as responsible and forward-thinking.

 

Balancing Challenges and Opportunities

While the challenges of implementing DSPs are real, they are far from insurmountable. With proper planning, the right tools, and strategic investments in training or partnerships, Q-commerce brands can address these issues effectively.

The future of DSPs in Q-commerce is equally promising. AI, retail media integration, and innovative ad channels like voice and in-car ads will open new doors for engagement and growth. Sustainability metrics further highlight the importance of aligning business goals with global environmental priorities.

By embracing these trends and proactively addressing challenges, Q-commerce brands can leverage DSPs to build stronger customer relationships, enhance ROI, and stay ahead in a competitive landscape.