Category specific digital advertising in India is expected to grow three times to $1.2 billion, while the online job market looks set to double by 2020, according to a new study by Google and KPMG.
The next phase of growth of digital classifieds will be driven by e-services, real estate and automobiles, a report based on the study titled ‘Digital Classifieds in India’ said.
As per Google, search trends reveal that local searches across these categories have grown four times in the past four years, led by non-metros including Pune, Ahmedabad, Chandigarh, Kochi, Coimbatore and Jaipur.
Within e-services, classifieds for vertical dining, auto rentals, relocation services and home services such as beauty services, repair, tutoring and personal trainers are the most popular sections.
“The ecosystem is ripe for the emergence of digital classifieds. Spurred by the smartphone penetration, online users are expected to grow to a whopping 650 million by 2020,” said Nitin Bawankule, industry director, Google India.
The report said horizontal classifieds — or advertising across industries and the general public — will continue to lead with about 30% market share of the total digital classifieds in 2020. It said 63% consumers will access eclassifieds by 2020.
Bengaluru, Mumbai, NCR and Hyderabad are the top-ranked cities for online job searches, with ‘sarkari naukri’ (government job) being one of the top searched Indic terms. “As the digital classified segment undergoes a rapid transformation, it is facing a few challenges like unverified listings and low customer loyalty,” said Sreedhar Prasad, partner, ecommerce and startups at KPMG India.