Classifieds have been connecting buyers and sellers for many decades, contributing significantly to helping job seekers find employers, and vice versa. However, times are changing. More recently, reports indicate that newspaper revenues are dwindling, and with that comes the downfall of newspaper classifieds.
However, the market for online classifieds has almost the same value as traditional print classifieds ads in classified newspaper ads. This is an industry that is valued at billions if dollars, meaning that the ads still occupy an important place in business marketing. While many business owners discount typical classifieds advertising as dead, the numbers say that web-based classifieds platforms are still alive and kicking.
As classified advertising decreases at a rate that is already alarming of the largest newspaper chains, traffic online classified sites offering are through the roof yet. This is an advertising business trend that companies of all shapes and sizes should consider capitalizing on.
So how does OLX Make Money?
OLX is one of the most popular classifieds websites on the internet. While the company has experienced success in developing countries like Nigeria and India (olx.com.ng and olx.in), it seems to have skyrocketed in popularity in India. OLX has done a great job capitalizing on its success, and turning a profit in the following ways:
Premium Publishing Classified Ads
The first way OLX makes their money is by offering Premium Classified Ads. These are the listings that appear at the top of the search results, in the premium and featured sections. For example, if you are looking to sell an iPhone on OLX and you want a better price, you could purchase a premium listing to draw more attention to the listing.Whenever somebody searches for “iPhone”, your listing will appear at the top of the page, increasing the likelyhood of getting clicked on.
These types of paid listings sell 10X faster than normal listings, as well as gain more money for the seller. The ads run for 14 days on the site, and can be extended if the product doesn’t sell. Since so many people use OLX, it is easy to see how these listings could earn a lot of cash for OLX.
Another way OLX makes money is by integrating ads into the site. Most of these ads are powered by Google AdSense, which puts relevant ads next to the listings based on what keywords the user searched for. These ads are from random people around the world that publish ads on the Adsense platform. Many of the ads served to OLX users are relevant to India and companies surrounding where the searcher is at.
Since AdSense is publicly available to everybody that signs up, anybody can use the platform to put an ad on OLX. Do you make durable iPhone cases that keep the screen from shattering? Put an ad on OLX using AdSense. The ad will likely appear next to the keyword for “iPhone with cracked screen”, giving you perfect placement for your ideal customer!
Hopefully this helped clear up how OLX makes money. Next time you are with your friends and the question gets brought up, you will sound like the smartest person in the room for knowing!