The total ad spend that we are anticipating for the year 2015-16 would be to the tune of total of about Rs 100 crore says Krishnamachari.
With the announcement by Just Dial to invest Rs. 100 crore for starting a mega campaign to popularise the Search Plus business, the company elicited a positive response from the brokerage houses and market experts.
In an interview with CNBC TV18, Ramkumar Krishnamachari, CFO of search engine company, Just Dial, said that the launch will take place in April. Presently, 23 products are already live and couple of products are awaited to go live on the mobile platform. To reach the mass consumer for launching the new service, they will spend on both print and television adverstisements, which will start from April-May. As the company will start spending from next financial year, they believe margins to remain stable as in Q2 and Q3 in this quarter.
"There will be a one time spend, the total ad spend that we are anticipating for the year 2015-16 would be to the tune of total of about Rs 100 crore. A substantial portion of this will be one time spending. Thereafter the regular ad spend would be to the tune of 4-5 percent of revenue. This year being the launch year we have to spend. If you exclude the one time spend, the margins we are seeing despite investment in Search Plus is going to be stable and with a likelihood of an upward bias", he said
Talking about the use of Search Plus for the consumers, he said, "What we have essentially done is to make life easier, simple for the consumers and users to make transactions. So any transaction that you can think of be it ticketing, ordering food or fixing an appointment or buying any goods, we have integrated all these transaction on a single platform, on a single app. As a consequence from user perspective they just have to come to our platform, download this single app and do all multiple things in the process. They will be able to discover real time best price for any of the product that they plan to buy and be able to save time and experience a great transaction".
Being part of one of the most booming platform, Just Dial is battling with its competitor companies like Zomato, bookmyshow, etc to reach the consumers.
When asked Krishnamachari how the company is planning to gain user traction while competing with other search engines, he said, "So far Just Dial was known as search destination. However, with the launch of transaction we will be known as search and transaction destination. The users will discover that it doesn't matter, if you want to book a ticket, you do not care from which interface you get a ticket as long as you get a ticket in the most easiest and convenient manner and we are going to provide that and similar is with food order or reserving a table. You keep your personal information, your credit cards in one place. Your personal information or your credit card information will be stored in one place and apart from convenience you will discover real time best prices from offline vendor, which is unique, which is not there anywhere in the world and then the convenience of having the goods delivered in five-seven hours time. So the value proposition to the users is immense".
In an interview with CNBC TV18, Ramkumar Krishnamachari, CFO of search engine company, Just Dial, said that the launch will take place in April. Presently, 23 products are already live and couple of products are awaited to go live on the mobile platform. To reach the mass consumer for launching the new service, they will spend on both print and television adverstisements, which will start from April-May. As the company will start spending from next financial year, they believe margins to remain stable as in Q2 and Q3 in this quarter.
"There will be a one time spend, the total ad spend that we are anticipating for the year 2015-16 would be to the tune of total of about Rs 100 crore. A substantial portion of this will be one time spending. Thereafter the regular ad spend would be to the tune of 4-5 percent of revenue. This year being the launch year we have to spend. If you exclude the one time spend, the margins we are seeing despite investment in Search Plus is going to be stable and with a likelihood of an upward bias", he said
Talking about the use of Search Plus for the consumers, he said, "What we have essentially done is to make life easier, simple for the consumers and users to make transactions. So any transaction that you can think of be it ticketing, ordering food or fixing an appointment or buying any goods, we have integrated all these transaction on a single platform, on a single app. As a consequence from user perspective they just have to come to our platform, download this single app and do all multiple things in the process. They will be able to discover real time best price for any of the product that they plan to buy and be able to save time and experience a great transaction".
Being part of one of the most booming platform, Just Dial is battling with its competitor companies like Zomato, bookmyshow, etc to reach the consumers.
When asked Krishnamachari how the company is planning to gain user traction while competing with other search engines, he said, "So far Just Dial was known as search destination. However, with the launch of transaction we will be known as search and transaction destination. The users will discover that it doesn't matter, if you want to book a ticket, you do not care from which interface you get a ticket as long as you get a ticket in the most easiest and convenient manner and we are going to provide that and similar is with food order or reserving a table. You keep your personal information, your credit cards in one place. Your personal information or your credit card information will be stored in one place and apart from convenience you will discover real time best prices from offline vendor, which is unique, which is not there anywhere in the world and then the convenience of having the goods delivered in five-seven hours time. So the value proposition to the users is immense".
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