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The three-letter word that spells BIG Growth – OLX

With the digital classifieds industry booming in India, deeper internet penetration, an experimental and ever-expanding customer base, and free mobile data, all add to an expanding industry

e4m by exchange4media Staff
Published: Nov 4, 2019 1:33 PM  | 4 min read

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OLX

It is an exciting time for the global digital classifieds industry. The space is in the midst of a boom in India as well. Deeper Internet penetration, an experimental and ever-expanding customer base and of course, free mobile data – make for the perfect recipe for an expanding industry. Hence, earlier this year, when Sushil Kumar, General Manager for operations at OLX India, expressed his aim of growing the company three-folds, it was very much in sync with the company’s and the industry’s potential.

To be able to achieve this ambition, OLX intended to invest in technologies that enable users to experience a safe, easy and convenient time on the app. After all, on an application which enjoys more than 100 million downloads, the interface remains key. But OLX’s investments in Artificial Intelligence and Machine Learning have paid heavy dividends. Not only the application boasts of being one of the top three app downloads on Play Store, but it also accounts for more than 100 million daily impressions.

The numbers paint a picture of magnanimous proportions for OLX. The application proudly brags of more than 4.5 million daily active users. The application has been successful in catching the imagination of the millennials, aged 18-35, who make up for a staggering 70% of the application’s user base. The demographic split too sits at a healthy 70:30 ratio with 70% of the user base coming from tier 1 and remaining 30% of the user base coming from tier 2 cities – a decent indicator of both the internet penetration and the ease of use of the application.

What is also intriguing is the kind of listings and sales the platform has witnessed. From Amitabh Bachchan’s old Mercedes S-Class to a Ferrari 599 to Ducati Diavel, to brand new M G Hector, to the still-waitlisted Jio mobile phones, the platform has witnessed some extremely novel propositions getting listed – and sold! The brand witnesses more than 4 million monthly listings which generate in excess of an astounding 65 million monthly replies. While these numbers may catch you awestruck, they are simply the by-product of an interesting and engaging interface which commands as much as 16.5 minutes per user on the application.

In terms of listings, OLX receives in excess of 9 lakhs premium listings per month. The platform witnesses as many as 3 lakh iPhones, 8-12 thousand luxury cars, 6 thousand luxury bikes getting listed. Over 300 premium white goods & electronic devices get listed every day and 450+ luxury properties for sale get listed every month.

However, while a robust user base and time spent on the application are good indicators of how well the application is received in the audience, the litmus test lies in the business, in such cases advertisers, these applications receive.

OLX’s advertiser base has gone through the roof! The company’s advertising started with advertisers in single digit in 2018 which has now catapulted into three digits by 2019. The company believes that the reason for this growth is that increasingly brands are seeing the impact of in-market audiences who are logged in and are cash ready. OLX is of the opinion that for their advertisers, it is easier to identify, segment and target on OLX to reach the most relevant audience. Brands advertising on OLX include market leaders from categories including mobiles, cars, laptop companies, e-commerce giants, consumer durables, etc. Much of this growth explains that since buyers and sellers come to OLX for the real deal and are not window shoppers, the propensity of they turning to convert to a customer is relatively very high. Unlike other e-commerce platforms, an ad will be seen by users who have the intention to spend. 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. These behaviours have helped OLX to provide meaningful and hassle-free services for its customers.

Circling back to the larger picture, the numbers look promising for OLX. The company looks completely on course to solidify its reign as the numero uno C2C marketplace application globally.

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