SpiceJet India aims to increase its revenue through the ad space selling on its website. The company is focusing on Internet marketing, search engine marketing and database marketing to promote Spicejet.com as well as specific promotions and offers to their database of SpiceJet guests.
SpiceJet currently has two prominent positions on the homepage and a few positions across the site. Spaces are also available on the e-tickets and mailers in the form of signature lines or slugs. It also has a database of more than eight lakh registered users and promotional mailers to this database are also available to advertisers.
Samyukth Sridharan, Chief Commercial Officer, SpiceJet Ltd, said, “We are a transaction-based site, hence customers who visit our site are serious customers. The average visitor spends 4.8 minutes on our site, which is huge compared to any other online portal. We are targeting Rs 80-100 million in the first year through online ad sales. Our competitors are all online portals like Indiatimes.com, ebay.com, etc.”
The ad properties can also be bought on fixed rates for certain duration. The spaces can be bought directly through SpiceJet or through their online agency, Interactive Avenues. The SpiceJet model works on CPM, CPL and CPA deals, which are used to achieve brand building and direct response at the lowest cost.
“Our share of the domestic aviation traffic stood at 10.5 per cent in the January-March 2008 period. Online bookings through Spicejet.com and through our online distribution partners is nearly 50 per cent of all tickets booked. Currently, we have started with a few positions available on our site, and based on the response we receive, we will look at increasing the number of positions and come up with innovations,” Sridharan added.
According to industry experts, Internet penetration in India was estimated to have grown at an average of 60 per cent in the last five years, while online advertising was estimated to be worth Rs 750 crore by 2010.