In order to give advertising a more prominent share in revenues, Snapdeal has launched a new version of its ad platform. This new platform will enable sellers to target buyers based on their online behaviour, geo-location, and purchase history. The data will be collected by Snapdeal which will share it with sellers to help them effectively target buyers.
Snapdeal launched its native ads platform in November last year. Out of a total of 3 lakh sellers,the company claims to have over 30000 sellers on its advertising network. As per the company, these sellers have witnessed a double growth of their business after using its ad platform.
Commenting on the launch of new ad platform, Tony Navin, SVP of Partnerships and Strategic Initiatives at Snapdeal said,
Snapdeal Ads will allow sellers to reach their customers in a more precise manner, help build targeted campaigns, measure impact and return on investment on a real-time basis. We have addressed the marketing challenges faced by our sellers by providing a simplified advertising panel to fulfill their diverse business requirements.
Last September, Snapdeal had acquired US-based advertising platform Reduce Data to strengthen advertising on its platform.
Its rival Flipkart too has lately been focussing on boosting advertising revenues on its platform. Flipkart recently announced touching $1 million monthly ad revenues.
Flipkart recently also launched a new advertisement platform called Brand Story Ads which would replace the traditional banner ads with interactive story ads. These allow brands to tell their stories in crisp and interactive manner. It has already partnered with over 50 brands such as L’Oréal, Micromax, Gillette, and Sony for these ads.
Clearly, advertising revenues have emerged as a crucial part of the strategy of both Indian firms as they look to sustain their business operations and reach profitability.
Both firms have also reportedly cut their commission on sales under specific product categories to incentivise sellers and in return, earn money through advertising by getting the sellers join their advertising platforms.
This strategy is also being aimed towards offering low-cost products to buyers as under the new FDI rules, these companies could no longer directly affect the prices of products on their platform through heavy discounts.