The online and offline classifieds market in India was valued at INR x billion in 20--. The online classifieds segment accounted for INR y billion while the offline/print classifieds segment accounted for INR z billion. The overall classifieds market in India is expected to grow driven by growth in the services sector, favorable demographics, and growth in the advertising industry. The online classifieds segment is growing faster than the traditional print segment due to increasing internet penetration and lower costs of online advertisements. However, the offline classifieds segment continues to have a large share due to the reach of print media and vernacular languages.
2. Executive Summary
•Classifieds market in India was valued at INR x bn in 20‐‐ and comprises of two segments:
Online Classifieds which accounts for INR y bn
Market Offline/Print Classifieds accounts for INR z bn
Overall classifieds market in India will be driven by the growth in services sector, favourable
demographics and growth in advertising industry
Drivers:
–
–
Increasing internet penetration
Cost effective advertisements
LE Challenges:
– Language barrier
P
– Online payment mechanisms
– Growth in online advertising
Drivers & – Favourable demographics
– Low scope for advertisements
M
Challenges – Low visibility and coverage
– Growth in the services sector
–
–
–
S A
Growth in print media
Vernacular presence
Growing circulation and customer base
•Emergence of mobile classifieds
•Value added services
Trends •New ventures in online space
•Emergence of local classifieds
Online Players Offline Players
Competition Player 1 Player 2 Player3 Player 1 Player 2 Player 3
Player 4 Player 5 Player 6 Player 4 Player 5 Player 6
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 2
4. Classifieds are increasingly becoming a popular mode of
advertisements for both online and offline space
Classifieds Market – Introduction
SAMPLE
Classifieds is a distinct type of advertising medium with both online and offline modes
• Advertisements are grouped under headings classifying the products or services being offered
• Cheaper than larger display ads and mostly placed by private individuals with single items to buy or sell
• Usually comprise text with no graphics and short statements about the requirements of buyer or seller
Classifieds – Segmentation Classifieds – Types
Classifieds
General Recruitment
Online Classifieds Offline Classifieds
Others Classifieds Matrimonial
• Comprises of extensive ad • Newspapers comprise the
space and structure major part of this segment
• Longer messages and use • Ads are typically short and
of graphical text are charged/word
Real Estate Automobiles
• Wider scope for searches • Mainly text with no graphics
Source:
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 4
5. Segment 1 classifieds is expected to grow faster than the
offline segment
Classifieds Market – Overview Classifieds Market – Size and Growth
• Classifieds market comprises of two segments:
INR bn
Online Classifieds
Offline/Print Classifieds
• Classifieds market is witnessing a change in the share c%
of market segmentation
LE
With growing internet usage, Segment 1 classifieds market
faces stiff competition as the Segment 2 posts rapid
growth
P
• Segment 1 classifieds segment is growing rapidly and
M
is attracting many small and big players
0
2008 2009 2010 2011e 2012e
S A
Players are venturing into new market segments to offer
differentiated services
• Segment 2 classifieds continue to operate with their
traditional models and target niche audiences
• Overall, the classifieds market in India will be driven
Classifieds Market – Segmentation
Segment 1 Segment 2
by the growth in services sector, favourable
demographics and growth in advertising industry
y%
a% b%
x%
200‐ 20‐‐e
Source:
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 5
6. Segment 1 is growing faster than the traditional print
segment
Segment 1 Classifieds Market Size and Growth Segment 1
• Segment 1 classifieds comprises of:
Horizontal or General / Multipurpose classified websites INR bn
Vertical sites in jobs, real estate and matrimonial websites
• Majority of the business comes from Metros and X%
Tier‐1 cities in India
LE
• Market is growing on account of increasing
P
penetration of internet
• Classifieds portals such as jobs, matrimonial and real
M
estate bring in almost d % of the total online 0
2008 2009 2010 2011e 2012e
A
classified revenues
Segment 2 Classifieds
• Segment 2 contributes h% of a newspaper’s ad
revenues
S
At f% margins, it is more profitable than display
Market Size and Growth
INR bn
Segment 2
advertising
Y%
• Segment 2 market is growing on account of
increasing penetration of print media
• Newspaper market in India is highly fragmented and
regionally dominant
• Despite increasing growth of Segment 1, Segment 2 0
market will continue to grow 2008 2009 2010 2011e 2012e
Source:
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 6
7. Drivers – Summary
Online Market Offline Market
Common Drivers
Drivers Drivers
• Increasing internet • Growth in print
penetration media
• Favourable
demographics
• Cost effective • Vernacular
advertisements presence
• Growth in the
services sector
• Growth in online • Growing circulation
advertising and customer base
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 7
8. Challenges – Summary
Online Market Offline Market
Challenges Challenges
Language barrier • Low scope for
advertisements
Online payment • Low visibility and
mechanisms coverage
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 8
9. Trends – Summary
Emergence of mobile classifieds Value added services
Key
Trends
Emergence of local classifieds New ventures in online space
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 9
10. Major Offline Players (x/y)
Company Newspaper Titles Business Description
Player 1 • Title 1 • Started in 19‐‐ when its flagship newspaper, Player 1 was
• Title 2 inaugurated by Mahatma Gandhi
• Is one of India's largest media companies
• It operates t printing facilities across India with an installed
LE
capacity of l mn copies/hour
• Publishes the Hindi newspaper ‘f’ through its subsidiary ‘j Ltd.’
MP • It also publishes a national business newspaper, k which is a one‐
of‐its‐kind newspaper in the sense that the company has an
exclusive agreement with the Wall Street Journal to publish
• Title 1
S A Journal‐branded news and information in India
Financials:
FY 20‐‐, total revenue ‐ INR x bn and net income ‐ INR y bn
• It is India’s leading media and communications group with
Player 2
• Title 2 interests spanning across Print, OOH, Activations, Mobile and
Online
• It’s newspaper operations alone with g titles sweeps across h
states with over q editions
Financials:
In FY 20‐‐, total revenue ‐ INR w bn; net income ‐ INR e bn
Note: This list is not exhaustive
Source:
ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 10
11. Thank you for the attention
The Online and Offline Classifieds – India report is part of Research on India’s Entertainment
& Media Industry series.
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ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 11