MSME Sector Embrace Online Advertising – Cheap, Better RoI

Online Advertising in IndiaWe talked to businesses such as Restaurants, SMEs, job consultants, real estate builders and brokers using online advertising for feedback. Online classifieds are perceived to be cheap and most are likely to increase their online spend. It is not a case of “either-or” as many are using multiple sites.

The cost of advertising through Justdial, Google or Zomato is lower and better targeted than a newspaper or radio ad; for a real estate broker in Mumbai an annual subscription to 99acres or Magicbricks is paid back through commissions from a single rental deal. Online currently (more…)

JustDial Spending Heavily on Sales & Marketing to Expand Reach

JustDial Spending to Expand ReachJustDial, the Local Yellow / White Pages Search Engine which diversified into e-commerce is spending heavily in expanding its reach by adding more sales force augmented with online Ad campaigns.

Currently it has a good presence in about 25 cities, although is touching 100 cities through either its own sales team or freelancers. Further, it intends to spend Rs600-1000mn to increase awareness and promote JD Search+ in FY15. Management believes that despite these additional costs / expenditures, benefits of operating leverage should lead to ~100 bps margin expansion.

Justdial does depend on Google for traffic (more…)

JustDial Profit Growth SlowsDown

Justdial SEarch Growth and ProfitsJustDial’s revenues increased 38.4% YoY in FY13 to Rs3.6bn (inline with our expectations). Search-related revenues increased 37.9% YoY owing to a 20.8% YoY growth in advertisement campaigns and a 14.2% YoY growth in realizations. Profit increased 26.7% YoY in FY13, 7% below consensus estimates, owing to other income of Rs135mn and exceptional cost of share issue expenses of Rs15mn.

Ad campaigns increased 20.8% YoY to 206,500 (vs 171,000 in FY12 and our expectation of 207,500). Realisations improved 14.2% YoY (vs 15.5% YoY expected by us) to Rs17,320.

JustDial received 364mn search requests in FY13 (up 43% YoY). Internet (182.6mn, up 47% YoY) and mobile-based (41.9mn, up 208% YoY) searches were the largest contributors. Voice-based searches increased 20% YoY to 139mn whilst SMS searches increased 47% YoY to 0.9mn. (more…)

Advertising on Justdial vs Sulekha for SMEs – A Review

Restaurant Advertising Sulkha JustdialWe’d like to compare the experience of posing as an SME and Advertising on Justdial Vs Sulekha. Justdial offers Voice as well as Web based search and thus leads from both the mediums while Sulekha has presence only on the Web.

Justdial Advertiser
The very first thing they suggest is entry level package worth Rs30,000 annually which required the advertiser to pay up four months of monthly installments in advance. They also offer Platinum and Diamond listings wherein the advertiser’s name appears first and second respectively on search results within that segment. However, there is hectic competition for the same and slots booked in the category would not be available to others. Platinum listings cost Rs85,000 annually. (more…)