(7 August 2007 6:25 pm)

MUMBAI: Reliance ADAG has extended its presence on the internet with its foray into the 'community building' domain with the launch of bigadda.com. Eyeing the media consumption habits of the youth segment, the company is looking to push its latest online product with a marketing spend of Rs 50 - 60 million for the first phase that will span three months.

The site will primarily involve media sharing of videos, photos and blogs. However, the company is looking to expand its offerings with the addition of new applications like music and mobile sharing. The core target audience is 15-25 year olds.

Reliance Entertainment president Rajesh Sawhney said, "Positioned as a youth entertainment network, bigadda.com is yet another extension of our business targeted at the youth. The media consumption patterns of this group tell us that while they are actively involved in social networking there is an absence of an Indian platform. Therefore this is the first organized effort in India to provide a platform for community formation initiated through user generated content."

The website is looking to attract a huge advertiser base as it is built on an advertiser driven business model. Touting on the potential of the medium, Sawhney says that currently the internet consumer base in India which is about 20 to 30 million attracts advertising spends of Rs 100 million. However, the penetration of broadband over the next five years will see this consumer base touch 100 million. With this growth, the advertising spends on the medium will be no less than half a billion dollars.

The marketing campaign, based on the tagline "let's catch up," will be heavily driven by television and internet supported by radio, outdoor and multiplex activation. Sawhney adds, "On building a user interface that appeals to the youth, we have chalked out the roadmap for the next six months. In the first phase which will span three months we are looking to spend Rs 50-60 million on the marketing activity alone. The second phase will see the addition of many more new features that will include music and mobile sharing."

With an existing youth targeted brand Zapak, why the need for a separate brand or a social network venture? Sawhney explains that although bigadda.com will be eyeing the youth demographic, it will be very differently positioned from Zapak.com which has come to be associated with gaming and the recently added email service.