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There are 3 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India" Naukri To Launch FirstNaukri - An Analysis Of The Freshers MarketAttend the WATBlog Panel On "Digital Media in The Next Decade" on 16th October - Register Now! So Naukri (infoedge) has announced its plan to enter the fresher jobs market by launching firstnaukri.com. Firstnaukri.com was first launched by Piper Serica in 2005 and it was often confused as a naukri.com company at that time. How do I know all this? Well at that time I started Jobs4Freshers.com a jobsites which as its apparent was also targetting the freshers space. I have rarely blogged about Jobs4freshers.com on WATBlog because I never thought it was big enough to talk about but it was my first company at the age of 20 and was probably the most enriching experience in the entrepreneurial career in the last 3 years. They say mistakes make you learn and I probably made all of them with Jobs4freshers.com which was run by me as a solo entrepreneur for most part of its existence. (Note: Jobs4freshers.com is no longer functional though I still own the domain, database etc) Some Statistics from Jobs4freshers to give you an idea if I am qualified to talk about this space: Resumes - 40,000, Job Postings - 1500+ Employers - 500+, Revenue - 3 lakh + (most job postings were free). This was over a period of a year. Jobs4freshers was operationally breakeven as it was just me running the show and hence we had no overheads. I failed at a lot of things then but more on that in another post someday..
So Naukri entering the freshers space almost a decade + later that its generic jobs space! One may ask why did it take sooo long for naukri when players were in this space way back in 2005? Here is my take based on all the experiences I had during my 1 1/2 year stint of bootstrapping a freshers job site. 1) Employers dont care about/pay for Freshers - See the issue is fresher are a dime a dozen and more often than not most companies get inundated with fresher resumes the moment they are about to pass third year. So essentially employers have little or no value for freshers resumes. To give you a deeper insight most job sites would hardly pay 30-40 rupees for a fresher resume to Search engine marketing companies in some cased they wont pay at all. The highest value resumes are 5 year + experience ones. 2) Pain Point is at freshers end but they have no money/credit cards - The real painpoint is at freshers end if you ask me. Because they are the one’s that desperately need to kick off their careers. Mind you Ive seen some cover letters which are so badly written that you will appalled to know that these freshers are actually engineers from english medium colleges. Clearly the pain point is at the freshers end but they have no payment capacity beyond say Rs.500/1000 and most of them wont have credit cards so even if you plan to charge them Rs.500 there is no cost effective way of collecting the same. 3) Freshers dont remain freshers once they get a job - Redundant database is what this space suffers from so if you do spend marketing dollars in getting that resume whether that fresher gets a job through your jobsite or through any other once he is employed he is no longer a fresher. Also most freshers would ideally like to complete a year or two before quitting their first jobs as it “looks good” on their resumes. This is possibly the reason FirstNaukri failed because it spent a decent amount of marketing dollars on acquiring resumes which was a mistake.
Given the issues above.. Why is Naukri entering this space now? 1) Last 3 years of growth = Shortage of talent at lower levels - In the last 3 years the Indian corporate scene has seen tremendous growth and that has lead to an shortage of quality staff even at teh lower levels. 2) Employer Branding key issue to attract good talent at the base level - Comapnies like HCL, Directi which are fairly large now are trying to attract the cream talent away from the regular top companies like Infosys, Wipro, Goldman Sach’s and others.For such companies employer branding is key. Even SME’s need to indulge in employer branding inorder to attract the top talent away from the large companies given the severe talent crunch. 3) Naukri best positioned to play the volumes game - See naukri has built probably the most recognised brand name in the jobs space and the last I heard was that they would attract 5000+ fresher resumes a day with no effort at all. For them to start Firstnaukri is just a database query segragation of existing resumes and they can easily claim to have the largest fresher resume database. All these factors given they also need to connect with the youth which is their primary audience for shiksha.com so it all fits in for them!
What Naukri should keep in mind? The key challenge is where will first naukri earn its revenue from? - As stated earlier naukri would find it difficult to convince recruiters to spend their money on freshers. So finding alternate revenue streams that are scalable would be key. Branding and Ad Revenue should be looked at - Naukri should build Firstnaukri in a way that it becomes a hub for employer branding solutions as thats a need I see growing multi fold in the years to come. Building a self sustaining community around content - Most freshers would be active users of the web and hence this is an opportunity for building a community around career related content for freshers. Once a community is formed it has a premium value and very low cost as the community grows on its own. Though seeding a community in the first place would be a big challenge. My recommendation would be to focus on building this community.
Related Posts Jivox MD Naren Nachiappan Tells All about BigAdda Tieup, Revenue Share in Video Ads & Future of Video AdvertisingAttend the WATBlog Panel On "Digital Media in The Next Decade" on 16th October - Register Now!
Q) How do you plan to reach out to advertisers for BigAdda? What steps, strategy are you taking?There are two parts to our strategy for reaching out to advertisers for BigAdda. The first is via agencies. Our intent is to support agencies in their use of online video as a part of their media plans. There are many agencies who have a desire to use online video but are not necessarily equipped with the tools, technologies and publisher network to be able to effectively execute an online video campaign. Our intent is to support these agencies and function as their inhouse online video experts. We have relationships with all top tier agencies, and the expansion of our marketing/tech support staff is intended to grow these relationships. Currently, we have offices in Delhi, Chennai and Bangalore and will open an office in Mumbai in the next 3 weeks – allowing us to effectively support agencies nationwide. The second part of our strategy is to gain exposure for our online video advertising products and services directly to advertisers via our marketing efforts in India. We will be very visible in the online advertising world in India through participation and sponsorship of events such as the last IAMAI conference in Mumbai. This strategy working quite well, as we have initiated discussions with several premium brand advertisers as an outcome of these marketing efforts in the past few weeks. In each of the above aspects of our strategy, we have positioned BigAdda inventory as premium inventory which is great for targeting an important emerging demographic in India. The response to BigAdda inventory has been very positive from our prospect base, and you can expect to see us initiating several campaigns on BigAdda this month (October.) Q) What kind of margins would Jivox earn from the BigAdda deal?I'd prefer not to reveal the specific details of our financial relationship; but will note that it is a win-win relationship. Q) What are the standard revenue share that you have with publishers?It depends on the level of engagement, the type of technology we have provided to the publisher, the marketing support for the relationship, etc. A number between 20% and 50% (to Jivox) is the typical range within which we operate. Q) What are the kind of publishers (size, traffic, type of content etc) that you are looking to partner with in India?We partner with premium publishers who have a significant amount of video content. We are specifically NOT interested in the long tail model which includes small (relative to traffic) sites with (potentially) unlicensed content. Our advertisers prefer to have their online video presence on those publishers who host premium, licensed content on high traffic sites and can embed instream video ads. Sites such as rajshri.com, ibnlive.com and bigadda.com are part of our network and are great examples of the kind of sites we like to partner with. Q) What kind of ads does Jivox allow (Pre roll, post roll, player branding?) Also do you have any tools to create these ads for advertisers?All of the above (pre, post and player branding) are possible with Jivox. Tools for ad creation are a core part of our strategy. At our public site www.jivox.co.in and www.jivox.com we host a free product called "AdSlate" (http://slate.jivox.com/advertiser/login.php) which allows advertisers and agencies to rapidly create compelling video ads. "AdSlate" has available hundreds of licensed stock video and audio clips which users can use to quickly create a relevant video advertisement. The tool has sophisticated capabilities to add text, images, custom audio tracks, etc. and specify timing transitions between them to completely customize the video, and convey the appeal of a brand effectively. Q) Who are the current Indian advertisers on your network? What is your projected revenue for the next year/3 years from India?In India, we have several dozen advertisers. Nokia, Bharathmatrimony and Isango! are a representative sampling of our current advertisers. Q) How big do you see the video advertising market in India to be in 3-5 years? And what would be the reasons for that growth?It is currently quite small (less than 50 crores), but all indications are that this number will be at least 20x that size in 3 to 5 years. The reasons for the growth are the 1/ increasing availability of video content – which in turn drives the availability of inventory for video advertising 2/ increasing percentage of Indian viewers who see video as a mainstream (and exclusive) medium to receive news, entertainment, etc. 3/ The increasing availability of high bandwidth internet connectivity which fuels the previous 2 trends and finally 4/ requirements from advertisers for media that can effectively convey the unique value proposition and emotional appeal of their brands – which video can do better than most other forms of media. WATBlog Analysis - The key would be advertiser and advertising agency outreach and also if Jivox can do many more such big tieups then it would have a sizeable online video inventory with some well known brands which would be useful in getting some traction going with the advertiser community and with the agencies. As mentioned by Naren the size of the industry is minuscule so a lot of evangelizing would be required. Related PostsBarcampMumbai - The Evolving Tech Community & Culture (Check Pics)Attend the WATBlog Panel On "Digital Media in The Next Decade" on 16th October - Register Now! As mentioned in the ealier post WATBlog was at the 4th edition of the Barcamp Mumbai which was being held at the IIT Mumbai SJMSOM Institute of Management. Now for those who dont know the concept of barcamp is an international one and it basically is an ad-hoc get together of techie and tech/startup enthusiasts and is an unconference completely driven by collaboration and community feeling among the event planners, participants and speakers. Here are all the sessions that happened over the 2 day Barcamp in Mumbai. We attended a few of them and here are some of the stuff that was talked about.. We attended the session by Opera where Shwetank a web evangelist from opera gave interesting insights on the mobile internet usage in India vs the rest of the world. Some stats are given below: 1) 8 out of the top 10 mobile phones used to access opera mini are Blackberry’s in the USA whereas 8 out of the top 10 phones are nokia’s in India. 2) Less than 3 % of Indian women use mobile internet via the opera browser. 3) Highest user traction on mobile internet is for gaming downloads, music downloads and video downloads worldwide. We also attended a session by Entrip.com a visual travel blog focussed on the global audience. Nicholas Adams the Director of Entrip said that travel is much more than just eticketing or ecommerce. He said that travelling involved several modes of transport, local flavours and little nuances which can be shared and add value to several others looking to plan a trip. He said the core business model of entrip was not ecommerce but was advertising. Another product demo was made by iRefr.com a job referral site much like Yellojobs and Techtribe.com. They are still in closed beta and they claimed that their product would not only provide incentives for referrals but also provide tools to users to make referrals hassle free. Day two had an interesting session with Anand Lunia of Seedfund who revealed what they look for in startups while seed funding. Here was his list of things: 1) A team of founders is better than a single founder. At seed stage quality of team is very important 2) We look at business which give 10 times return on our investment over 3-5 years. 3) We are focussed on tech investments we dont do real estate or retail. 4) We prefer Mumbai or Bangalore based startups as we have a base there or startups willing to relocate to these places. 5) We never take majority stake in the startup. But we may have a tag along and a drag along clause i.e. Incase the entrepreneur wants to exit he would have to sell our shares first before he sells his. Also incase we want to exit we can offer the entrepreneurs shares at the same price we are selling ours. Barcamp in Pictures The most interesting part of Barcamp are the pictures we took as they give an insight into the evolving tech Barcampers attending a Mattress Session (half of the sessions were given in this way!) Post It Culture to register sessions The Pizza Lunch Party! No Beer in ‘Bar’Camp .. But lotsa Cola.. End of Barcamp even the Cow turns
We thoroughly enjoyed the barcamp experience and hope to see an even bigger and better barcamp nest time around. Related PostsMore Recent Articles
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