ONDC Woos News Media Platforms with Content-to-Commerce Pitch

• ByStartupStory     |    April 25, 2024

In a bid to revolutionize the landscape of digital commerce, the Open Network for Digital Commerce (ONDC) is extending its reach beyond conventional realms. Following its successful integration with tech unicorns, restaurant chains, and FMCG majors, ONDC is now setting its sights on a new frontier: news media platforms.

The government-backed e-commerce network is making an enticing proposition to media companies, asserting that they can unlock greater value by facilitating e-commerce transactions directly on their platforms, as opposed to solely relying on advertising revenue.

A memorandum circulated by ONDC to media firms highlights the potential benefits of this shift, emphasizing that by enabling direct transactions, media houses can enhance both economic incentives for themselves and value-added services for their consumers. This strategic move aims to bridge the gap between content consumption and commerce, positioning media platforms as catalysts for seamless transactions.

“With ONDC, e-commerce is unbundled,” the memo states. “Media houses can empower their consumers to transact directly through their channels, while professional players manage sellers and streamline the transaction process. This transition allows media houses to focus on tailoring offerings to meet customer needs, transitioning from mere advertising to proactive demand generation.”

The digital arm of Dainik Jagran, a prominent player in the Hindi news space, stands as the pioneering news platform to embrace ONDC. Positioned at the forefront of integration, it is poised to venture into e-commerce segments spanning fashion, home & kitchen, groceries, and electronics in the coming weeks.

Sources indicate that ONDC is actively courting another major media house, known for its stronghold in the print segment, to join the fray. This strategic expansion underscores ONDC’s commitment to democratizing online retail and fostering a diverse ecosystem of participants.

The initiative comes amidst the backdrop of news media platforms grappling with dwindling ad revenues, exacerbated by the dominance of tech giants like Google and Meta in the advertising space. As per a recent EY-FICCI report, while online news enjoys widespread reach, monetization remains a challenge, prompting the exploration of alternative revenue streams such as e-commerce integration.

Gaurav Arora, Chief Operating Officer of Jagran New Media, elucidates the vision behind the integration: “The integration of Khojle.com, an e-commerce venture by Jagran New Media in partnership with ONDC, covers a diverse suite of platforms catering to various audience segments. Together, these platforms boast a robust network with over 80 million monthly active users, laying the foundation for scalable e-commerce integration.”

Looking ahead, Jagran New Media plans to expand its offerings via ONDC, diversifying into consumer durables, health & wellness, beauty & personal care, and F&B segments, with potential forays into financial products and services.

While challenges lie ahead, analysts acknowledge ONDC’s role in revitalizing the Indian e-commerce sector. With notable players like Ola, PhonePe, Meesho, and Shiprocket, along with FMCG majors like ITC and Unilever, embracing the platform, ONDC is poised to disrupt the hegemony of established players like Amazon and Flipkart.

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