Classifieds-An Overview!

The global advertising market, estimated to be worth over $200 billion, has for a long timed remained the purview of newspapers, television and radio media, but slowly the growing internet penetration has brought in another big player into the game.

The Online classified market has experienced significant growth since its inception and the growth will still continue due to increasing internet penetration, simplicity in usage and being a better suited platform for a larger set of consumers across the country.

As internet user base grows in India more businesses will be driven online and spending on online classified will increase. According to an Edelweiss report the global online classifieds segment stands at USD 10.5 billion, which translates to 17% of global internet ad revenues. The size of India’s online classified industry is about INR 11 billion and is expected to grow to INR 31 billion by 2016.

Real estate and e-services are expected to increase by 4x and 7x, respectively, by 2020. Within the e-services classifieds vertical, dining, auto rentals, relocation services and home services like beauty services, repair, tutoring, personal trainers are the most popular. The online jobs search market is set to double by 2020 with 63% consumers accessing e-classifieds.

The digitally savvy consumer is happy to pay for value-added services. For instance, 59% of used goods buyers are willing to pay for quality verification of goods or home delivery; 43% of job portal users are willing to pay for auto application for jobs and 40% of consumers searching for real estate are ready to invest more for legal verification and property check.

“The ecosystem is ripe for the emergence of digital classifieds. Spurred by the smartphone penetration, online users are expected to grow to a whopping 650 million by 2020; and with every second consumer willing to pay for value added services, the digital classified segment is expected to touch $1.2 billion by 2020,” said Nitin Bawankule, Industry Director, Google India.


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