PLA’s by e-commerce players for mobile commerce
Got this mail from Flipkart today. Flipkart (and almost all major E-comm players) is coming up with a new function called “Product Listing Ads” as part of their Mobile commerce strategy for Sellers. I think flipkart has some PLA’s live also. And to serve their clients better they are pooling in Agencies who will be given a list of sellers from their cities to work on so flipkart is playing safe and a game where they don’t loose much. Educate sellers and make them spend on PPC ads, take your fees ( e-comm co has no say, Its going to be an agreement between agency & seller). A win-win-win for all if executed well and ofcourse a great source of revenue for these companies. Interestingly, Alibaba generates more than 55% of its sales from PLA’s. Few concerns for Indian market
1) Seller base is very low and they need to aggressively work on increasing it fast.
2) Marketplace isn’t as evolved,yet.
3) Tough to get majority of sellers spend on ads, lot of them aren’t even aware so they need to be educated well and convinced. At the same time I have couple of clients who wanted to exploit the reach and base of theses e-comm companies and were willing to spend on things like mailers, banner ads but then PLA’s are little different ball game where you are totally dependent on agencies capabilities.
but 50% cash back as free credit for their first campaign might lure some to try this. Would love to hear Views of sellers and agencies who are opting in. I have decided to wait and watch as the maths doesn’t look very interesting for Kolkata market at this stage. Only lure is you get some leads and can work with them beyond flipkart but then off late due to various things that we did in the first quarter we are getting lot of inbound enquiries through mails and calls and are in a position to say YES or NO based on kind of work we are interested in doing. Connect if you are looking for anything related to Digital and have something interesting to offer, have good budget and want to play long term game (not the usual maintain my social media profile types).