Saturday, October 10, 2015
hello readers,
Very interestingly today i got a interesting question "How does olx earns money"??
There are many myths around market that they earns money from the users to whom they provide services, but it is false.
First of all lets have a look at what google says:
when you search on google you"ll find that:
Site: Olx.com, Olx.in – it varies according to each of the 40+ countries it operates in. Makes Money Through: Google AdSense banner ads, Sponsored links, and Featured Listing.
And on further research i found that it is true that olx earns money from google adwords.
Quikr earns through advertising on site (via adsense), premium listings and leads generation program for small and medium businesses. In a recent interview Pranay Chulet, CEO Quikr said that they are on a run rate to achieve USD50m in revenues this year: Quikr raises Rs 550 crore from group of investors led by Swedish investment company Kinnevik
OLX relies only on adsense as of now.
While quikr has been quick to monetize OLX wants to consolidate and then start. Both are absolutely correct from their standpoint.
But what is astonishing is that despite more than half a decade and huge investments of TV ads, a classifieds platform still is not confident about opening up revenue channels. This is because the audience stickiness is still ephemeral and not more than 5-10% of internet audience in India is using these classifieds platforms.
India is not a place where the traditional Winner Take All model is going to work for classifieds and definitely not in a hurry ,
If the players play it correctly, there is a huge upside in revenues in India and I am sure both OLX and Quikr will be able to achieve huge returns in future. Infact I can foresee a 3rd big player coming in India + launch of vertical classifieds as well by horizontal players.
Very interestingly today i got a interesting question "How does olx earns money"??
There are many myths around market that they earns money from the users to whom they provide services, but it is false.
First of all lets have a look at what google says:
when you search on google you"ll find that:
Site: Olx.com, Olx.in – it varies according to each of the 40+ countries it operates in. Makes Money Through: Google AdSense banner ads, Sponsored links, and Featured Listing.
And on further research i found that it is true that olx earns money from google adwords.
Quikr earns through advertising on site (via adsense), premium listings and leads generation program for small and medium businesses. In a recent interview Pranay Chulet, CEO Quikr said that they are on a run rate to achieve USD50m in revenues this year: Quikr raises Rs 550 crore from group of investors led by Swedish investment company Kinnevik
OLX relies only on adsense as of now.
While quikr has been quick to monetize OLX wants to consolidate and then start. Both are absolutely correct from their standpoint.
But what is astonishing is that despite more than half a decade and huge investments of TV ads, a classifieds platform still is not confident about opening up revenue channels. This is because the audience stickiness is still ephemeral and not more than 5-10% of internet audience in India is using these classifieds platforms.
India is not a place where the traditional Winner Take All model is going to work for classifieds and definitely not in a hurry ,
If the players play it correctly, there is a huge upside in revenues in India and I am sure both OLX and Quikr will be able to achieve huge returns in future. Infact I can foresee a 3rd big player coming in India + launch of vertical classifieds as well by horizontal players.
