OLX Advertising aims for 5X growth in 2020: Tarun Sinha
Tarun Sinha, Business Head of OLX Advertising, talks about how the brand is marketing its new ad offering
Putting to use their 4 million monthly listings which generate in excess of an astounding 65 million monthly replies, OLX has a new offering, OLX Advertising. The new offering allows other brands to run ad campaigns on OLX akin to any other digital media platform. This differs from ad campaign offerings run by e-commerce companies or social media platforms since on OLX users actually have intent to buy. Since buyers and sellers visit OLX to buy/sell a product and are not window shoppers, the propensity of these users converting to a customer is relatively very high.
We spoke to Tarun Sinha, Business Head for OLX Advertising on how the brand is marketing its new ad offering.
Speaking about the kind of reach OLX advertising wants to encash on to get customers on board, Sinha said, “If we look at reach, we serve almost a hundred million impressions a day. If we look at engagement, we have typically a person spending 16.5 minutes. We have 4 million listings in a month, 65 million replies. So if we look at the ecosystem, to engage transacting users, this will be the most critical system and that's what we pitch in the market. So, it's not only reaching but the fact that we have data on what car they (customers) sell, what mobile handset they buy, we have information on what real estate they are looking at, we can actually target them vertically, we can target them horizontally. Once you know the purchase priority of a person and the consumption he can do, imagine the kind of rich information we can give to marketers.”
From second-hand buying and selling products to now getting brands on boards, how is OLX Advertising helping brands to widen their target audience? Sinha said that it has not been an easy journey. Citing an example, Sinha added, “If you're selling a BMW, there is also a massive need to buy one. And if you're buying a BMW, and you're looking at a secondhand BMW, either look at badge value, or you look at the price point. So, on the buyer's side, 50% of the people end up buying a new product and seller anyway has to get a new one. That is the value proposition we give to our customers that we have a lot of information on what they're buying and selling. They're not in the evaluation stage. I have listed a product, I need to sell it and I have to get them to buy. Just before is at the end of the funnel of purchasing a commodity, this is where we come in. That is the strongest strength we have when it comes to the market.”
The brand has in no time got a diversity of brands coming in. Brands such as KFC, Samsung, BMW, Amazon, Sephora, Flipkart, Vivo to BFSI brands are joining the tribe. Telling us about one of the campaigns that the brand did with Amazon, Sinha shared, “We had an interesting tagline for one of the campaigns for Amazon, “OLX pe bech, Amazon pe khareed. There are a lot of synergies, now we have started having FMCG brands coming in not on a vertical play but on horizontal.”
Not just that, in terms of listings, OLX receives more than 9 lakhs premium listings per month. The platform witnesses as many as 3 lakh iPhones, 8-12 thousand luxury cars, 6 thousand luxury bikes being listed. Over 300 premium white goods and electronic devices are listed every day and 450+ luxury properties for sale get listed every month. As per a recent OLX data, 90% of OLX mobile sellers buy a new phone and hence, mobile advertisers have increased over the past one year on OLX. 64% OLX mobile buyers end up in the new purchase funnel and similarly 40% OLX bike buyers are also interested in buying a new bike.
At OLX Advertising, Sinha told us a lot of OLX browsing on the website or app, usually translates into a purchase. “A car can liquidate in between 20-30 days, for handsets it liquidates within 7-15 days. 60-70% of our goods get liquidated in a one to one and a half month cycle. That is the reason that customer is so sticky, they are 16 and a half minutes on our site, the lowest bounce rate in the industry when it comes to classified 65 million replies. So, the data actually showcases the fact that there is fulfilment happening on our site,” he said.
OLX Advertising has grown 6X between 2018-19 and we are planning to grow another 5X growth in the year 2020. “You might say that we are a small player in the market but in relevant market size, we have got a good buy and share of wallet from the customer.”
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