Zepto auto-activates ad campaigns; Brand partners express concerns over transparency

In a bid to boost its reach and performance, quick commerce platform Zepto has reportedly activated advertising campaigns for its brand partners. According to a report by Moneycontrol, Zepto has shared a note with its brand partners that it is auto-activating the ad campaigns to improve visibility.

The platform in its note told its partners, "We observed that your brand currently has no active campaigns running on the Zepto Ads Platform. To ensure you continue to benefit from consistent visibility and strong performance, we’ve proactively activated auto campaigns for your account".

Zepto called the move 'low-effort and high-visibility and added that auto-activation of ad campaigns will, "keep your presence strong, your performance on the track, and your time focused where it matters the most".

Zepto faces worker protests in Telangana over low wages, unreasonable work pressure

However, sellers have expressed displeasure, saying that Zepto's move lacks transparency and raises concerns regarding the platform's overreach if the brands had intentionally paused or cut ad spending.

Sellers said that Zepto's note did not specify default budgets, bidding strategies, creative control, or targeting parameters that would be used in auto-ad campaigns.

The move will reportedly allow Zepto to automatically debit from pre-approved budgets or ad wallets of the brand partners.

A seller told Moneycontrol that ad budgets often escalate on the quikc commerce platform without warning, even for campaigns underperformed campaigns. Moreover, the process of exiting from future campaigns was not straightforward either, another seller added.

Zepto bets big on data with Zepto Atom, aims to redefine brand strategy

“Yes, there is a way to opt-out, but it isn’t easy – you have to work with the account manager and explain why you don’t want to invest. It just felt like another way of taking more money from the account without asking our permission,” a seller told Moneycontrol.

One person said that Zepto treats wallet balances or previous participation as consent to restart campaigns.

Last year Zepto co-founder Aadit Palicha said they have crossed Rs 1,000 crore in annualized advertising revenue since the launch of its ad business in 2021.

The quick commerce platform has also launched Jarvis, an in-house ad platform for brands and sellers to increase sales by running optimized and focused campaigns for the platform users.