As per the new market trend, e-commerce majors such asFlipkart and SnapDeal have become a mode of promotion for companies such as TaxiForSure, OLX and HDFC Life. These companies have started posting targeted ads on eCommerce websites with high traffic flow to gain attention of visitors and attain a point-of-sale.
The advertisement strategy illustrates the impact and the mounting importance of these eCommerce websites as a medium to promote other products/ services. While it acts like a catalyst for the e-tailers in order to drive traction, it also helps brands release targeted and relevant ads, which are likely to appear as a distraction to the online shoppers. "Every time we put a clutter-breaking ad, we see a 200% increase in traffic. Besides traffic and transactions, we also increased our customer base by 30% through such campaigns," said a company spokesperson.
As per experts in media planning and buying, advertising on eCommerce sites is likely to become a prime mode of promotion in the coming future. "This medium of advertising will grow bigger as the market grows, both for the eCommerce players and also for the brands. Eventually, it will become a significant part of the media mix for brands as it enables point of sale advertising," said Tushar Vyas, managing partner, GroupM South Asia.
"These websites have seen an explosion in traffic, therefore, for companies such as us, it makes sense in working with them. Similar to Google and Facebook, this is another medium for us to reach out with the additional benefit of shopping happening," said Lata Subramaniam, chief marketing officer, Sterling Holidays, which recently advertised with Flipkart.
With the eCommerce monsters such as Flipkart and SnapDeal jumping into the advertisement arena, all other medium/ small players such as Jabong, Naptol, Yepme etc. must be gearing up to pace up the game soon.