BigAdda eyes revenues of $4-5 million in one year; to breakeven in 2-3 years
29 August, 2008
Social networking site BigAdda.com expects to earn revenues of $4-5 million in the next one year by targeting internet and mobile internet users in the country. BigAdda hopes to reach breakeven point within the next 2-3 years.
“We have projected to have revenues of $4-5 million within the next 12 months and majority of it will be coming from advertisements,” Shivanandan Pare, COO, BigAdda.com, has said. According to Pare, BigAdda.com, at present, has 2.5 million registered users and is adding 15,000 users daily. [Source: Business Standard]
Zapak is an excellant investment from the group.
See,effective monetization of social networks has never been really spectacular and will never be bcoz of obvious reasons and i seriously don't find any reason to go for bigadda ot ibibo or whtevr when i & my friends are already there on orkut,and it solves my purpose completely.
I think Reliance should better opt some economical ways(internet promotion) to gain any further traction for bigadda(just for the sake of it's economical survival and any further payback hopes)and stop spending hell big money on a venture which has a dull future.
Zapak is still a smart investment,i suppose
They should first consolidate all their portals with a single login.
I agree. I registered with this site only after seeing their ads etc and I was really surprised to see how poorly its been constructed. I have my doubts if they'll even manage to stay afloat for long at this rate.
15k new users registering daily is still a pittance given that they have been bombarding India in such a 'big' way.
$4 - $5 mill per year in revenues is still way too low for the amount they are spending. I sincerely doubt they will break even in 2 to 3 years. heck a good restaurant like indigo in Mumbai makes that much in a year.
The whole point of a social network is that it grows virally and exponentially at a "viral network rate"... which has hyperviral growth effects ... more than the standard hotmail type viral systems.
Given the fact that they need to keep pumping in so much money for ads that produce the LOW growth figures of 15k per day - shows that this wont work in the long run. As soon as they pull out the ads - the growth curve diminishes.
The whole point of facebook and orkut is that they have become such big successes with almost nothing spent on advertising. just fantastic products and great pr.
2.5 million users? only? after all this? didnt they say about a year ago that they had something like 2 million users? whats this?
Lastly, if you visit the site and interact on it, its a barren wasteland compared to facebook or orkut.
i think they need to rethink *many* things here.
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