IndiaMART To Spend 50% Of 25 Crore Marketing Spend On Digital!

Further to my previous post on TradeIndia’s Chinese section, here comes more updates from the B2B space, IndiaMART have allotted a budget of around Rs. 25-30 crore for advertising and marketing activities and have appointed Quasar Media as its digital agency for digital marketing campaigns, media planning and media buying. IndiaMART is funded by Intel capital and after 13 years it has finally decided to leverage marketing and advertising channels in a big way.

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As per Mr. Dinesh Agarwal, CEO of IndiaMART 50% of the total advertisingbudget will be spends on digital marketing and rest of the budget will be used for advertsing in print media, radio and other online properties through its association with Times Private Treaties, Bennett, Coleman & Company (BCCL). IndiaMART is also planning to sponsor the various TV programmes on business channels.

IndiaMART is very active these days as they preparing themselves for global competition as Alibaba spreads its wings in the Indian market. Global database per se IndiaMART cannot compete with Alibaba as theyhave only 5 lakh buyers versus 42 million members of Alibaba. In one of his interview, Mr, Dinesh Agarwal said that Alibaba comes with large supplier base which can be its strength or may be harmful for IndiaMART’s market share.

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B2B marketplace is of $15-20 billion market of transactions of a total $100 Billion online B2B business and the listings are ranging between Rs. 5000-15000 per year which is very less as compared to global B2B market Specially in China suppliers are very active. Though in India, many SMEs are not still unaware of online business and through advertising IndiaMART is trying to reachout to those players and increase their share from 60% and also increase the pie of B2B space.

12 Responses to “IndiaMART To Spend 50% Of 25 Crore Marketing Spend On Digital!”

  1. tapesh
    September 8, 2009 at 8:26 pm #

    I think it’s must as per Indian economic environment, because we have a poor literacy rate , people are not still ready to accept the changes is global market, they are not changing their business working, in such a cases it’s require to educate to companies how they can advertise on Internet and in cash business opportunity on Internet.

  2. Seema
    September 9, 2009 at 9:39 am #

    @tapeshtgmail.com – But it doesnot means that IndiaMART is doing all this for the sake of educating people. They are doing this for its own to increase its userbase & reach.

  3. AJ
    September 9, 2009 at 10:32 am #

    @Seema – As per me both are inter- linked. Without educating more people, it would not be possible to expand market share of any company like indiamart which already enjoys more than 60% of it. It must increase the universe first by educating people and invite more sme’s on board and then target for more userbase and reach.

  4. Seema
    September 9, 2009 at 12:33 pm #

    @Aj – Though both are inter-linked but i feel if indiamart started this earlier then its market share would be much more…

  5. Pradeep Chopra
    September 9, 2009 at 3:25 pm #

    A great move and would definitely improve the userbase, reach and branding of IndiaMART. Would assist IndiaMART to reaffirm its place as a clear cut market leader in B2B segment.

  6. tapesh
    September 10, 2009 at 10:30 am #

    but if we see the Indiamart is investing 50% of it’s turnover in advertising only..It itself a very big steps for the companies like Indiamart..

  7. Jamal
    September 10, 2009 at 10:24 pm #

    I would suggest that they spend few lakhs on their UI, and local language support.

  8. Seema
    September 11, 2009 at 9:52 am #

    @PradeepChopra – It is a great move but as i said in the post if this would taken earlier then IndiaMART would be on top

    @Tapesh – Almost all the companies spend on marketing & advertising however IndiaMART has started this quite late..and what you want to say by companies like IndiaMART…. ?

    @Jamal – As a product, there is a lot of space for improvement in IndiaMART..many features & services they are still not giving which its competitors are giving

  9. tapesh
    September 11, 2009 at 10:33 am #

    Seema : Indiamart this ammt. is alomst 50% of their turnover.. which isreally a big things for them..and IndiaMART is not doing their advertising in diff. way from last so many years…

  10. Seema
    September 12, 2009 at 9:41 am #

    @Tapesh – 50% of revenue on advertising is a big thing and objective must also be big could be preparing themselves for competition or to prove himself better

  11. Joe Felix
    September 12, 2009 at 9:53 pm #

    I dont understand why so much of hoopla for this news? :0

    One crore or more per month on digital/Internet is something that every serious [Job, matrimony, propertyt] classified players are spending on an average. There were B2B players who’ve spent double that of this [25 cr], during late 90′s. Just that it was a wrong time to spend- mostly on hoardings and stupid press advertising.

  12. Sagar Malhotra
    July 18, 2010 at 6:21 pm #

    In last 2 decades; number of B2B websites flourish in the Indian market like indimart.com, tradeindia.com, sulekha.com, delhidirectory.biz, alibaba.com and many more. According to study indiamart is major player in the market. Some buyers has gain good business from these websites some not.

    It is very hard to say which is best site, every website has its own stake in the market. Main strategy of each website is to generate leads for their customer from the internet. Each company do their best to provide better results for their clients. As a customer who is looking for buyer from internet generally browse more 5-10 websites to get better deal, what I have personally noticed most of buyers placed their listing on more than 2-3 sites. Every buyer want to grab every opportunity.

    All B2B sites has their own success stories, so its difficult to predict which sites give more leads, As per indimart they claim their premium customer get minimum 50 leads per year, however, 50 or 100 that will not fill hunger of buyer, that’s why most of buyers buy paid listing more than 1 site. Let take an example of Airtel leading brand in telecommunication industry, you can easily find their commercial on each channel whether its aajtak or star TV. Main story is to get maximum number of customers.

    So I would suggest try each company… and explore more market…

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