The online Indian B2C classifieds market was non-existent six years back and the limited transactions that happened, were largely offline. OLX was faced with a task of changing consumer behaviour from one of transacting offline and hoarding goods to buying and selling goods online.
Given the absence of revenue stream, the challenge before OLX was to demonstrate share of listings was to demonstrate increase in market share. OLX has used media as an extensive driver of growth in listings in the last two years. However, having exhausted the innovators and the early adopters, OLX faced a challenge todrive accountability for marketing efforts and assess the efficacy of media spends to drive incremental growth in listings. This was critical given that listings was highly elastic to media spends and also the fact that there was a halo effect of OLX advertising on listings on competition.
To address this, a mathematical model using advanced regression techniques was built for 18 regions across India to not only understand impact of media in the past, but also simulate the growth that they could achieve with different levels of media investments. This model was the basis for estimating the effectiveness of media strategy (ROI of media channels), predicting their market trends (baseline) and analyzing each channel across media at a granular level.
Analytics not only helped in media investment decision making on an ongoing basis, but also led to design of subsequent campaigns, increased localization of marketing efforts and implementing a target based approach to media investments.