The number of ads during the IPL is insane! Like @nithintweeted, every fourth ad seems to be from a brokerage firm.
The rise in ads leads us to review the approach. We’ve always said that the markets are the toughest place to make money in our discussions and interviews. We at Zerodha frequently get asked why we don’t run ads. On the inside, I sometimes question whether our beliefs are correct when I see others running ads.
Still, it’s probably best this way. By focusing on customer experience, attracting clients who take trading and investing seriously, and keeping acquisition costs (CAC) and lifetime value (LTV) in check. Also, we’ve never pushed products to clients or set revenue targets for our team, helping us avoid spam and unnecessary product pushes.
Again, as explained here, the goal is to keep the broking experience straightforward and reliable. By not running ads, we can maintain a clean environment, focus on providing genuine value to our customers, and keep customers’ interests first before business.
How do you think the ads will influence our industry?
I really appreciate Zerodha’s strategy of not running ads.
While ads can attract many new customers, generating revenue requires serious customers who treat trading and investing as a business. Zerodha’s top-notch platform and service naturally draw in serious traders and investors. Even if someone opens an account influenced by ads elsewhere, they will most likely switch to Zerodha once they experience other platforms and services .
No…
Running ads is not a crime .
Such big brands like coco cola ,dairy milk running ads to increase own networth…
I will suggest please run ads…
Thank you…
I think much of the money for the broker comes from intraday equity and fno right. So it doesn’t make much sense to advertise and get new clients since the Cost of Acquisition will take quite a time to breakeven?
1 full time trader = 10,000+ semi active / passive investors and people who trade will do enough research themselves to know which platform is the best
Needless to say you have so many unpaid brand ambassadors spreading the name of zerodha
IMHO, it depends on the type of customer one wants to acquire.
Sure, there are a lot of naive folks in the world
who are going to lose their savings getting involved in the markets with incorrect expectations due to the ads that get them interested.
Do you want to be the ones to fleece them / profit from their ignorance?
Alternately, by acquiring such customers (instead of other brokers),
do you think you WILL be able to guide such naive customer
away from losing their savings by misinvetsting/mistrading?
Or is your limited finance/time/effort better spent
maintaining / promoting the customers you already have (or acquire naturally)
that have proper temperament/expecations from the markets (and not get swayed by ads)
and ensure that their relative success snowballs
and promotes other naive potential customers to follow in their footsteps?