Chris Abraham

Sunday, April 19, 2009

How Does OLX Support Itself?

OLX mostly makes money from advertising. OLX displays text ads on listing, search and item pages, but does not display advertising on the home page. We are one of the few online businesses where advertising works well and is a sustainable business model.

Advertising works well on OLX because users are in a search behavior - they are looking for something. As a result our contextually relevant ads have a high click through rate. Combined with the high value of our top categories - real estate, jobs and real estate - it leads to a reasonably successful and sustainable business model.

Being a free ad supported site generates much lower revenues than if we charged for postings, but we feel that it leads to more listings, provides a better public service to the community and greater value to visitors.

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