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Nithin Kamath on why Zerodha doesn't advertise: ‘Watched a cricket match and saw…’
Nithin Kamath said that increasing number of stock brokerage advertisements was a good sign for the stock markets.
Zerodha co-founder Nithin Kamath said that there is a reason that his company does not advertise. As a firm, it is "good place to be" in when Zerodha does not have to look at consumers in terms of acquisition costs and lifetime value, he said.
Nithin Kamath wrote on X (formerly Twitter), “I often get asked, both internally and externally, why we don't advertise. It is a good place to be when you don't have to look at customers in terms of acquisition costs (CAC) and lifetime value (LTV). This way, we don't have to push customers to take a trade, we can stay spam-free, not have to sell life insurance as an investment, and more.”
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He also said that increasing number of stock brokerage advertisements was a good sign for the stock markets as he observed a surge while watching a cricket match.
“I watched a cricket match after a long time, and damn! Every fourth ad is that of a brokerage firm. Sign of good times for the markets,” he said.
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Social media users commented on Nithin Kamath's post. One commented, “Yes one good thing about Zerodha is that it never push customers to take a trade, give tips or sell other services. One bad thing about Zerodha is that it gives glitches in times of Volatility. Right?”
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While another wrote, “I think going forward you will need to advertise. This segment had zero competition when you started but now it has cut throat competition and need recall value to remain relevant.”
