When one talks of pre-owned automobile marketplaces online, questions of quality and credibility are always a concern. Despite this, several portals are seeing traction in the space such as Droom, CarDekho or CarTrade.
When one talks of pre-owned automobile marketplaces online, questions of quality and credibility are always a concern. Despite this, several portals are seeing traction in the space such as Droom, CarDekho or CarTrade. And to fuel its growth as well as propel its marketing agenda, Droom has earmarked Rs 400 crore for marketing for the next 12 months — a 77% increase over the previous year’s marketing spend of Rs 225 crore. Out of this budget, Droom plans to spend Rs 150 crore on digital marketing, of which two-thirds will be performance-based and Rs 50 crore will be spent on branding, such as on YouTube and Facebook videos. The share of television will be Rs 100 crore, with another Rs 50 crore allocated for print, outdoor and activation.
In addition, Rs 50 crore each has been assigned for promotions and CSR. A total of four television campaigns are in the pipeline for the next 12 months. Its first campaign, starting this week, focusses on the auto portal’s orange book value offering — a pricing tool — and is scheduled to run for two months across 37 television channels, pan India. “We will be running three more campaigns. The idea is to make Droom a ‘household name’,” says Sandeep Aggarwal, founder and CEO, Droom. “The next campaign will be launched in August to position Droom as a partner in the entire lifecycle management of the vehicle. This will be followed by another burst around Diwali on auto financing for Droom Credit,” he informs.
This year, the focus is more on Hindi channels with the portal seeing increased traffic from tier II cities and beyond. The share of Hindi channels will be 65%, while the share of non HD channels will be 80%. Droom will also have an integrated approach towards TV and online for the first time, with parallel video ads running on digital along with TV for brand creation. “Earlier there was a bias towards English channels, with a focus on the top 15 cities. But now, we have increased the exposure to Hindi channels with an eye on the top 40 cities,” observes Aggarwal. It is currently present in 510 cities. Droom sees 32 million monthly visitors on its website and app, and sells close to 75,000 cars and one lakh two wheelers per annum. “By increasing our marketing budget, we believe Droom can achieve its net revenue target of `275 crore for 2018 by expanding its reach,” Aggarwal sums up.