2023 Report by Digikala: 15% of the Online Advertising Market Share Held by Digikala Ads

Digikala Releases 2023 Performance Report: 15% of the Online Advertising Market Share Held by Digikala Ads

Digikala has released its 2023 performance report, a 300-page document detailing various aspects of its performance over the past year. The report highlights that Digikala Ads, the platform’s advertising agency, managed to capture a 15% share of the online advertising market in Iran in 2023.

According to Iran digital economy, the 2023 performance report indicates that 10,993 brands are active on Digikala, with Iranian brands accounting for 47% of the platform’s total sales. Additionally, the number of sellers on the platform increased by 36% to over 418,000, and the range of products grew by 29% to 12.5 million.

15% Market Share of Digikala Ads in Iran’s Online Advertising Sector

To help increase the sales of its vendors, Digikala offers various advertising and promotional models, including search-based display ads, SMS and push notifications, custom surprise promotions, sampling, and display advertising.

Advertising on Digikala is managed by Digikala Ads, an agency whose mission, according to the report, is to support the growth of sales and brand awareness for partner vendors and suppliers. Since its inception in 2020, the agency has focused on market research, planning, execution, and evaluation of branding and sales programs.

The report claims that with an average return on investment of 700%, advertising on Digikala is one of the most effective tools for sales growth in the country. Over the past year, more than 80 leading brands have collaborated with Digikala Ads to enhance their share of the online market.

The platform also notes that after four years of operation and working with over 300 domestic and international brands as well as 30,000 sellers, the advertising agency has captured a 15% share of the online advertising market. In 2023 alone, the agency experienced over tenfold growth in the number of clients and a fourfold increase in advertising revenue.

According to the report, Digikala Ads conducted its third major environmental campaign this year, featuring 22 brands and 400 urban displays.

The campaign, which took place in Tehran, Isfahan, Mashhad, Tabriz, Rasht, and Karaj, focused on creating the best opportunities and providing a satisfying shopping experience for people.

Efforts to Support Startups and Local Businesses

Ali Alavi, Digikala’s Vice President of Marketing, noted in the report that over the past year, Digikala has aimed to fill the gap left by non-Iranian brands by using various algorithms to analyze and understand market behavior. The goal has been to introduce these tools and ultimately commercialize them to assist Iranian brands, positioning Digikala as a marketing and research partner.

It seems that Digikala, in line with this approach, has focused not only on supporting Iranian brands but also on giving special attention to local startups. The platform’s report mentions that it does not charge sales commissions from new, local vendors until their businesses are thriving. Additionally, Digikala has allocated part of its advertising capacity to promote local products without charging any fees.

Gift Cards and Used Mobile Sales: New Developments at Digikala in 2023

In 2023, Digikala introduced the Non-Inventory business line to expand its corporate welfare market and develop non-physical products. This line resulted in a sevenfold increase in corporate welfare sales and provided integrated corporate welfare services to over 1,000 organizations last year.

The used mobile phone section was another new feature for Digikala in 2023. The platform enabled users to sell their used phones to Digikala after an instant price check, or buy used phones with a 7-day exchange guarantee and a three-month warranty. The report also mentioned that soon, the buying and selling of second-hand goods will be available in other product categories.

Best-Selling Days for Iran’s Largest Online Retailer

The report highlights that during one of the brand’s most significant campaigns, Black Friday, Digikala sold over 4,967,000 items and recorded more than 957,000 orders. Digikala also identified Sundays at 11 PM as the peak sales day and time of the week.

Digikala’s statistics also reveal that the highest number of orders on the platform in 2023 were placed in Tehran, with a significant discrepancy compared to other provinces.

Discounts on 46% of Digikala’s Products

In response to the decline in purchasing power, Digikala has worked to support customers by offering discounts and promotions, such as exciting deals and events like the Winter Black Friday sale and year-end clearance sales. According to the report, 46% of products on Digikala had discounts this year, and over 2,000 products were featured in special offers.

The Share of Discounted Products at Digikala

Discounted products accounted for 45% of the items sold on Digikala, with over 1.1 million items sold at a discount this year.

Shipping Costs: The Main Barrier to Completing Purchases

In another section of the report, Digikala addresses customer satisfaction with its services and claims that 63% of customers have recommended Digikala to others, and 83% rated the platform above 7. Customers cited the wide range of products, reasonable prices, comprehensive information, and return process as the main reasons for recommending Digikala to friends and family. The report also states that the Net Promoter Score (NPS), which measures customer recommendations, approached 50 this year.

Curiously, Digikala users have cited the prices, product variety, shipping costs, and delivery times as reasons for dissatisfaction. This means that for Digikala customers, pricing and product diversity are both factors of satisfaction and dissatisfaction!

Digikala’s statistics reveal that over 26.5 million abandoned and incomplete shopping carts were recorded last year. The platform notes that incomplete purchases are often due to shipping costs, despite Digikala covering 50% of shipping subsidies, meaning customers are actually paying only half of the true shipping cost.

Social Commerce’s Market Share is Twice That of Digikala’s

The report also covers global retail statistics, indicating that online retail in the United States, Canada, and the UK has experienced a decline, while Indonesia and China have seen growth. It notes that online retail in Turkey has remained unchanged since the pandemic, and Russia, Saudi Arabia, the UAE, and Qatar have increased their market share in 2023 through substantial investments.

Digikala further explores online retail statistics in Iran in the report, noting that Iran’s share of e-commerce has increased from 4% in 2022 to 6% in 2023. Digikala alone accounts for one-quarter of this 6% share. The report also indicates that the share of social commerce in e-commerce is 3%, which is twice the share of Digikala.