Small e-commerce companies spending big on television advertising

The ad spends of online portals in the April to July quarter of 2013 was 1.2% as compared to 0.8% in the same quarter of 2011.NEW DELHI: The dotcom boom seems to be back, at least for television advertising. And it is not only the big and known names spending money on the most popular and preferred mass medium but also the small online retailers are spending humongous marketing dollars on extremely expensive television advertising. 

Fabfurnish, an online furniture retailer, which is less than two years old, is about to kick start its first television campaign in January 2014. Backed by German e-commerce incubator-cum-investor Rocket Internet, the company has put in half a million Euros into this campaign. However, the company did not disclose the size of the fund it has raised.

“Online home decor market is in a nascent stage. We need to create awareness about the category as well as build brand for ourselves,” Vaibhav Aggarwal, CEO and co-founder, said. The campaign is planned for four weeks in January and will be supported by simultaneous digital initiative also.

TV advertising forms a significant part of media mix for, the online portals which sells eyewear is backed by venture capitalists. “We spend approximately Rs 10 crore annually on mass media advertising which is mainly done for brand building and gaining trust of the consumers. TV allows us to educate and create much needed awareness for the brand resulting in traffic and building trust,” Peyush Bansal, CEO and founder, said.

While the prospects for e-commerce companies cannot be doubted, does advertising on television lead to increased sales? Most e-commerce companies claim that the traffic of their portal increases and so does awareness and trust but most of them do not have numbers to back their claims. 

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Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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