OLX is an online classifieds marketplace founded in 2006 that operates in over 40 countries. It allows individuals to sell goods by uploading photos and descriptions and connects buyers and sellers through its online portal. OLX makes money primarily through advertising such as Google Adsense on its pages, sponsored links, and allowing sellers to feature listings. By focusing on developing markets with large opportunities, OLX continues to grow its user base and monetize the traffic through digital advertising.

1. OLX Business Model
Presented by :-Group 11

2. Introduction
• Founded in 2006 by Fabrice Grinda and Alec Oxenford, the online
marketplace OLX has its roots in Argentina
• functions in over 40 countries, of which stronghold are in countries
like India, Pakistan, Brazil, Portugal, Poland, Ukraine, Nigeria,
Philippines, and Kenya
• online classifieds website

3. How OLX works?
• OLX works like just another classifieds portal – it has a parallel system
for customers running side by side
• People who wish to sell any goods can upload pictures of their goods,
along with a title and description of the same and the expected sales
price of the commodity
• People who wish to buy goods may browse through the several
alternatives, contact the seller, negotiate with them one-to-one and
then purchase the item
• OLX connects the two online through a classifieds portal. The
conversation, bargaining, advances, and transactions remain between
the buyer and seller only

4. Business Model of OLX
• The Business model of OLX is actually scale-dependent
• The website acts as a classifieds portal where customers can buy and
sell goods
• OLX spends large amounts of money in order to garner more and
more user traffic and greater frequency and number of listings
• The high traffic is put to use to earn revenue by monetizing the
number of clicks and searches

5. How does OLX make money
Prime source of revenue for OLX is through
1.Google Adsense Monetizing,
2.Google Custom Search Engine,
3.Sponsored Links
4.and Sponsored Listings.

6. Google Adsense Monetization
• Adsense is an advertisement placement service
by Google which lets publishers like OLX to
serve media advertisements.
• It works in juxtaposition with the OLX website,
and its contents are displayed on the webpage
itself. The number of Adsense units varies on
different pages of the website.
• OLX garners high user traffic through online and
TV brand advertisements. OLX monetizes this
high customer inflow. It does this on the basis
of Cost per Click (CPC), Cost per 1000
Impressions (CPM) and Cost per View for video
ads on its home page as well as that on
individual product pages till the seller is finally
contacted and transacted with.

7. Google Custom search Engine
The OLX page has a search bar for customers to look up products. When they perform
any search, the results obtained are an optimization with the Google custom search
engine monetization of Adsense, wherein the first two-three results are from Google.

8. Featured listing
for example, if a seller has posted a classifieds listing of a refrigerator he wishes
to sell. After some time, the product is bound to go further below more recent
listings, and would now appear on the second or third page and so on. To make it
still appear on the top, the seller can pay to OLX to ‘feature’ his listing on the top
of the site.
Featured listing is a source of profit to both the seller as well as OLX. He might
earn more impressions too, which are also dual sources of income for OLX.

9. Future opportunities
• The biggest power spread of OLX lies in India, Brazil, and Poland,
though these three combined make up for just half its profits.
• The main strategy is working on this online mega-mart in the less
developed or developing countries, considering the vast ocean of
opportunities here.
• OLX doesn't wish to contend with the stalwarts of the US or UK and
earn any competitors on the way.