Just Dial paid PVR nearly 50 mn in 2QFY17 and 60 mn in 3QFY17 for accessing their inventory on its own platform. In 4QFY17, while the company spent ~70 mn on TV advertising, this was offset by nil payments to PVR. This, coupled with some efficiency related
improvements led to lower-than-expected other expenses.
Pricing on renewals has not grown, and a major reason of this is a perceived reduction of leads by the SME clients. SMEs have been used to the quantum of leads generated in the era of voice calling; while the leads were more, conversion rates were also lower (1 in 7 leads on an average converted). Internet has been typically generating fewer leads, though the quality of leads is superior (1 in 2 leads converted on an average). JUST is educating customers in firming their internet presence, suggesting suitable packages, as well as informing them of the leads quality.
Barring WhatsApp, it does not see any other app (including UPI-based apps) providing chat-based advertising opportunity in India.
