With IAMAI coming out with numbers on Online Display Advertising market which is being pegged at 350 crores for this financial year.Especially the point which talks about BFSI being the major spender it brings to my notice ever increasing financial startup advertising online ranging from Komli Ad Network product Loanraja to Rupiz ad network product Paisawaisa which are pretty much using their waste going ad impressions inventory to promote their internal products. This list can go on to include others like apnaloan , loanshop, rupeetalk etc.
What is most interesting is to understand their business model which requires answering is how do they operate and difference among the two.
If we try to compare between the lot which is existing their is current difference between 2 kind of players
i) Lead Aggregators : Which have created site which is made up of landing pages optimized to get leads from display advertising or search engines. Acting more as collection of leads point instead of product research or comparision point
First most important thing before we get into their business model is to understand their need in market
i) Financial Products sector is unorganized - Its very hard for common man to still decide between different financial products like loans and cards offered by banks
ii) Measurement Benchmarks are available for this sector products where providers are ready to buy user requests – Insurance Product request lead will be bought by Apollo or Max for INR 80 per lead. Agencies are easily available to buy such leads from sites.
So both from end consumer and provider point of you their is scope for an exchange to play connection point. If you see from current perspective most of the financial sites have been started by Media Companies like Komli which run Loanraja and Rupiz which runs Paisawaisa.com etc these site is just extending the existing model of these ad networks which run performance campaigns on CPL basis for these financial product advertisers aggregating leads for them. Now such sites provide them advantage to collect one lead back auction to highest paying advertiser and just rather than being dependent on leads being generated by their display inventory they could also aggregate more leads from other mediums like search engine and direct product popularity.
Though in long term Financial Product Comparison Engine and Research Portal like apnaloan.com will succeed as compared to people like loanraja etc as they go one step forward and try to close the loop by validating the lead by calling customer and also using other tools like cross-selling,up-selling etc.
How this helps is increase lead to sale ratio making more reliable partner for end financial service provider to partner with.
How can these sites business model evolve
For financial sites like apnaloan.com which are evolving as financial consulting provider they are positioning themselves in larger market where potential for inorganic growth is higher as compared to lead aggregators which are in terms becoming bacfiller to people like apnaloan.
As this industry evolve i would rather bet on financial site which will go further and complete the cycle of lead acquisition to qualification to sale instead of just lead aggregator as this way the product will always stay on the top of food chain instead at bottom.