SUMMARY
The digital arm of Hindi media giant Dainik Jagran is in advanced stages of integration with ONDC
The state-backed network is pitching that the media houses can generate more “value” by facilitating ecommerce transactions on their respective platforms than just advertising
This comes as news platforms have been up in arms against tech giants such as Google and Meta over their alleged dominance in the news aggregation space
Looking to bolster its category play, the Open Network for Digital Commerce (ONDC) is reportedly looking to onboard news media platforms on the state-backed network.
As part of this move, the digital arm of Hindi media giant Dainik Jagran is in advanced stages of integration with ONDC, Moneycontrol reported.
Citing a memo prepared by ONDC for media companies, the report said the state-backed network is pitching that the media houses can generate more “value” by facilitating ecommerce transactions on their respective platforms than just advertising.
“… Media houses can enable their consumers to directly transact using their channels, while other professional players take care of sellers, bringing together inventory and catalogues, as well as other services to fulfil a transaction. The media house can thus focus only on tailoring the offering to the best use of the customer from the universe of products and services available, and move from advertising to demand generation directly,” ONDC reportedly said in the memo.
Citing its rationale, the memo said that advertising and affiliate marketing distance media platforms from the point of most value generation (the transaction). This, the network said, limits both customisability and charges levied by media platforms.
It is pertinent to note that news platforms have been up in arms against tech giants such as Google and Meta over the latter’s alleged dominance in the news aggregation space.
Homegrown publishers have alleged that they are struggling to retain their advertising revenues while big tech majors corner a big chunk on account of their dominance in the space. An antitrust case in this regard against Google is already under consideration of the Competition Commission of India (CCI).
With the new offering, ONDC aims to woo a new category of participants and spruce up the number of users on the platform. The government-backed platform also aims to capitalise on the growing online media space which, as per an EY-FICCI report, is projected to boast 500 Mn consumers by 2026.
The memo comes at a time when ONDC has been constantly adding new offerings and partners to expand its network. With listings in segments such as ecommerce, mobility, fintech, and agritech, the network aims to potentially generate $250-300 Bn in GMV (gross merchandise value) by 2030.
Last week, Bhavish Aggarwal-led ride hailing unicorn Ola Mobility was said to be looking at diversifying its ecommerce offerings on the ONDC. Prior to that, ONDC also expanded its offerings with the addition of Kochi Metro Rail into its growing mobility domain.
As a private non-profit platform backed by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC aims to “democratise” ecommerce in the country. The likes of Delhivery, Paytm, Phonepe, Uber, IDFC Bank, Kotak, Shiprocket, Dunzo, and Tata Neu have integrated some of their services with the ONDC.
