The online recruitment market is growing rapidly, with job advertising volumes still registering high double-digit growth rates.
The full growth potential for online recruitment services is yet to be realised. This could be unlocked through the increasing broadband/Internet penetration in the Asia-Pacific region, migration from print to online advertising given its better value proposition and growing demand for convenient and efficient services.
JobStreet is sheltered from volatile prices of raw material like newsprint, whose costs are passed on by the print media via higher ad rates. Jobstreet has kept its ad rates stable with the aim of achieving a target mass before raising prices. Its largest cost item is staff (circa 55% of FY10 total operating expenditure), where a major item is sales commission. Hence, JobStreet’s margins are more resilient than other advertising media.
A US-based online job site, CareerBuilder.com, acquired JobsCentral.com (third largest player) in Singapore on May 5 2011. This is the second acquisition of an Asia-based online job site after SEEK Ltd bought JobsDB in December 2010.
JobStreet is sheltered from volatile prices of raw material like newsprint, whose costs are passed on by the print media via higher ad rates. Jobstreet has kept its ad rates stable with the aim of achieving a target mass before raising prices. Its largest cost item is staff (circa 55% of FY10 total operating expenditure), where a major item is sales commission. Hence, JobStreet’s margins are more resilient than other advertising media.
A US-based online job site, CareerBuilder.com, acquired JobsCentral.com (third largest player) in Singapore on May 5 2011. This is the second acquisition of an Asia-based online job site after SEEK Ltd bought JobsDB in December 2010. An industry consolidation is imminent with increasing appetite for the Asian market. And JobStreet could be an active participant in the consolidation process given its strong position in Asia-Pacific.
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