Snapdeal eyes over Rs 100 cr revenue from ad platform
"As more and more sellers come on the platform, ad revenue will be a growing contributor to Snapdeal's profitability goal," it said.
Snapdeal expects to garner over Rs 100 crore in revenue from its ad platform that assists sellers in improving their brand visibility on the e-commerce platform.
Snapdeal has also announced a 50 per cent cut in ad rates for most of the categories, including fashion and electronics, applicable from today.
"... (the) self-service seller ads platform (was) launched 9 months ago ... During this time, over 10,000 sellers, 200 brands and agencies have used the ads solution and this number continues to grow," Snapdeal said in a statement.
It added that the ads platform will rake in Rs 100 crore in annual revenue for the company.
"As more and more sellers come on the platform, ad revenue will be a growing contributor to Snapdeal's profitability goal," it said.
Banner ads were launched nine months ago by Snapdeal to help sellers utilise prime real estate on the Snapdeal website, enhance their visibility, increase conversions, and build brand loyalty.
While the service was initially piloted with bigger brands, it was later opened to all sellers.
"Sellers are a crucial part of the market place ecosystem and with the launch of this innovative solution, we are enhancing visibility for our sellers significantly," Snapdeal Chief Technology Officer Rajiv Mangla said.
Vishal Chadha, Senior Vice President (Business) at Snapdeal, added that ads are a key revenue driver for Snapdeal's marketplace platform.
The company, which competes with Flipkart and Amazon India, hopes to hit profitability in the next two years as it undertakes a number of steps, including layoffs and moving away from non-core activities.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:00 PM IST