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Market Research Report : Online and Offline Classifieds Market in India 2011


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The Online and Offline Classifieds Market in India has been growing consistently and has huge potential to grow in the near future, especially the online segment which is growing at a faster pace. The online classifieds market was valued at INR 10.3 bn in 2010 while offline classifieds accounted for INR 12.4 bn. Increasing internet penetration and growth in online advertising will help the online segment to grow further and outperform offline classifieds by 2012.

The report begins with a market overview section that initially provides an introduction about classifieds, its types and segmentation. It goes on to provide an insight into the overall classifieds market, its market size and growth. The market size and growth of both online and offline classifieds have also been added individually. This is followed by the business and revenue model of both online and offline classifieds.

An analysis of the drivers explain the factors for growth of the industry including increasing internet penetration, cost effective advertisements, growth in online advertising, favourable demographics, growth in the services sector, growth in print media, vernacular presence and growing circulation and customer base. The key challenges of the market include language barrier, online payment mechanisms, low scope for advertisements and, low visibility and coverage. Key trends in the market have also been analyzed which includes emergence of mobile classifieds, value added services, new ventures in online space and emergence of local classifieds.

The competition section provides an overview of the competitive landscape in the industry and includes a brief profile of the major online and offline players in the market. The recent private equity investments have also been covered. Key developments in this sector have also been highlighted.

Market Research Report : Online and Offline Classifieds Market in India 2011

  1. 1. Online and Offline Classifieds – India June 2011
  2. 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 MChallenges – 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
  3. 3. •Market Overview•Drivers & Challenges•Trends•Competition•PE Investments•Key Developments ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 3
  4. 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 graphicsSource: ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 4
  5. 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‐‐eSource: ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 5
  6. 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 2012eSource: ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 6
  7. 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. 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. 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. 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 Indias 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 exhaustiveSource: ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 10
  11. 11. Thank you for the attentionThe Online and Offline Classifieds – India report is part of Research on India’s Entertainment & Media Industry series. For more detailed information or customized research requirements please contact:Gaurav KumarPhone: +91 33 4064 6214E‐Mail: gaurav.kumar@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. ONLINE AND OFFLINE CLASSIFIEDS MARKET IN INDIA 2011.PPT 11