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Indian e-commerce backs Facebook

News, 22 August 2016

NEW DELHI: Indian e-commerce firms are increasing their adspend on Facebook to take advantage of the social network's advanced measurement capabilities that can help to deliver higher profitability and ROI, a leading Facebook executive has said.

Arjun Kolady, Facebook's Business Head of e-commerce for India and South Asia, told the Economic Times that as brands shift their focus to value there has been a corresponding shift in adspend "to where they think the maximum returns on investment are".

"People are more worried about profitability, they want to have the right measurement models so that they know they're not burning cash," he said.

"People come to Facebook and they check it 14-15 times a day. For a marketer it is an opportunity to reach the consumer so many times. On a steady basis, we are seeing double digit returns on ad spends for e-commerce companies on Facebook."

One Indian firm that has been ramping up its activity on Facebook is Paytm, the Noida-based mobile payments company that launched a campaign in June to promote the different ways that the Paytm wallet can be used.

According to Paytm, the campaign received six million views on Facebook alone in less than ten days and the involvement of Facebook increased app downloads.

"Facebook is becoming a more important part of our advertising plan and the amount of targeting and profiling it can do is significantly superior to other channels," asserted Shankar Nath, SVP at Paytm.

"When we run app install campaigns we figure customers installing our apps through Facebook are transacting more than any other sources," he added. "The social media platform has also become more advertiser friendly now. They share far more data with us and can help advertisers take informed decisions."

Craftsvilla, the e-commerce marketplace for clothes and accessories, is another Indian company which used some of Facebook's advanced features to re-target its users with relevant products. It said its month-long campaign helped to reduce customer acquisition costs by 20%.

"Facebook understands its users and with its algorithms, targeted profiling of age groups and user behaviour give a lot of leeway to the marketer," said Manish Kalra, Chief Business Officer at Craftsvilla. "In today's environment, the focus is on efficiency and getting returns on every dollar spent."

Data sourced from Economic Times; additional content by Warc staff