Mobile wallet and e-commerce firm Paytm, run by One97 Communication Ltd, will spend Rs.600 crore on ads in 2016-17, the company said on Monday. Last year the company had spent more than Rs.500 crore in 2015-16.
According to sources, last three years when companies would invest heavily in brand building and customer acquisition, now the target is expected to be more on the lines of return on investment. Currently, the Paytm has close to 130 million wallets. Companies 40% traffic belongs from the categories such as money transfer, bill payments, and movie ticketing business through the ad campaign.
Last year, Paytm had bagged the deal of title sponsorship rights for Indian cricket for four years, which covers 84 matches to be played in India under the aegis of Board of Control for Cricket in India, cost Paytm Rs.203.28 crore.
Paytm has already launched a Rs.50-crore advertising campaign across TV, print, radio and social media for its mobile payment app.
The company is one of the 11 recipients which has received payments bank licence. It plans to start the bank with an initial capital of Rs.300 crore.
As per the data by TAM Media Research Pvt. Ltd, India’s top 50 e-commerce firms spent Rs.1,200 crore on television advertising in the three months ended 30 September 2015, a 46.3% increase over the same period in the previous year.
In September last year, China’s e-commerce giant Alibaba Group and its affiliate Ant Financial together committed to put an undisclosed amount in Paytm. Ant Financial had committed another $575 million in February 2015.