Chinese lifestyle website 58.com has announced that its advertising revenue in April 2009 was over CNY3 million and its net profit was CNY1.1 million, a year-on-year increase of 50% and an increase of 37% compared with the previous month.
In addition, 58.com said its advertising revenue in the first three months of 2009 was CNY10 million and the net profit was CNY4.2 million. The company predicted that its total advertising revenue in the entire year of 2009 will be over CNY50 million.
Yao Jinbo, president of 58.com told local media that the targeted advertising strategy is the major profit model of 58.com. For example, its marketing and promotion platform "Wang Lin Tong", which can help small and medium-sized enterprises to find their target consumer groups and promote their products, achieves average member increase of 800 per month and the contract volume of its store recommendation function had increased by 35% year-on-year in the first quarter of 2009.
According to public documents, 58.com received USD5 million investments from SAIF Partners, a Hong Kong-headquartered private equity firm in 2006. In June 2008, the company received additional USD40 million investments from SAIF Partners. At present, 58.com has set up sub-websites in 208 Chinese cities.