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September 10, 2006

Online classifieds: The rise of the dotcoms

Businessworld has an article on how Indian online services are taking marketshare away from newspapers and how newspaper publishers plan to respond.

Three years ago, Canon India spent Rs 30 lakh a year on recruiting through job consultants and classifieds in the print media. In 2006, 30 per cent of its recruiting is done online through sites like Naukri and Monster, besides its own site. The total cost has come down to Rs 10 lakhs. “We have almost stopped using print classifieds,” says Alok Bharadwaj, vice-president, Canon India.

...The Internet and Mobile Association of India estimates that in 2005-06, advertisers spent Rs 200 crore on classified advertising (jobs and matrimonial) online. This is growing at 70 per cent a year. In comparison, classified advertising in print stood at an estimated Rs 500 crore in 2005 and is growing at 20 per cent a year. At this rate, it is just a matter of time before the online classified ad market overtakes its print counterpart....

Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.