For internet companies, it is party time again. After the dotcom bust in 1999-2000, internet firms have come a full circle and are once again cash rich. And this time around, they have the funds to explore market opportunities across India.
The reason behind the current trend can be attributed to the internet usage touching 30 million users in 2006, as against just 17.7 million in 2005.
According to the India Online 2006 survey by JuxtConsult, an online research company, 22 per cent new users were added to the urban internet users pie.
More importantly, the market is growing in width as well as depth this year, as against just depth (urban users) in 2005. Also, online portals are growing in triple digit numbers.
Sample this - BharatMatrimony.com is growing at 100 per cent year-on-year. Murugavel Janakiraman, CEO, BharatMatrimony Group says, "We will be a Rs 100-crore company this financial year (FY)." Ditto, for People Group, which too is looking at revenues of Rs 100 crore in 2007, besides maintaining a 100 per cent growth for the next three years.
This, despite the internet growing at a slower rate.
"To maintain their growth momentum, players are exploring new customer segments, geographies and diversifying into different domains, adding local content, besides spending heavily on mass media (television, print and radio) to bring new customers into the fold," analyses Sidharth Rao, CEO, WebChutney.com, an interactive marketing agency focused on web.
The hitherto untapped markets of B and C-class towns is seeing players go the whole hog. They are allocating a large portion of their advertising budgets towards mass media campaigns.
Janakiraman notes, "Our marketing plan has a capital outlay of Rs 40 crore. Of this, Rs 25 crore is for the offline marketing campaign, which includes television and print massmedia campaigns and setting up of 100 Bharat Matrimony Centres by March 2007, while Rs 15 crore will be for online promotions."
Similarly for People Group, which has portals such as Shaadi.com, Mauj.com and Fropper.com, Anupam Mittal, chairman and managing director, People Group says, "We will spend Rs 50 crore over the next three years to cover most towns with a population of over 2.5 lakh people with Shaadi Points. Besides, we have a capital outlay of Rs 25 crore for a mass media campaign that involves television, radio and print."
As for Info Edge India, which has portals Naukri.com, Jeevansaathi.com, and 99acres.com, the group's spend on advertising last year was 17-18 per cent of its revenues at Rs 84 crore.
"We plan to maintain this ratio in this FY as well," says Hitesh Oberoi, chief operating officer, Info Edge, adding that it would also increase its offline sales offices from 40 to 100 over the next three years.
It is not only Indian start-ups that are looking at growing the market, but global players servicing the Indian markets too are not far behind.
For instance eBay, an online market platform provider has its offline eBay Academy programme, a platform for potential new users and sellers to learn how to sell successfully on the net. The Academy had trained over 21,000 potential users till date in India.
