Nithin Kamath reveals reason behind avoiding advertising Zerodha

Zerodha co-founder Nithin Kamath has revealed the reason behind the absence of advertisements for the brokerage firm. He has said 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.

No advertisement

In a post on X, Nithin Kamath wrote that by not advertising the firm don't have to push customers to take a trade, stay spam-free, not have to sell life insurance as an investment, and more. He also revealed his observation of an increase in the number of stock brokerage advertisements while watching a cricket match. He said that this was a good sign for the stock markets.

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😀

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…

— Nithin Kamath (@Nithin0dha) May 21, 2024

Commenting on Nithin Kamath's post, one social media user counted Zerodha not pushing customers to take a trade as one of its good things. Another social media user suggested that going forward Zerodha will have to advertise due to the competition

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.

— Neetu Khandelwal (@T_Investor_) May 21, 2024

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?

— NE Vibes (@NEVibesX) May 21, 2024

Also watch: 'Had a mild stroke out of the blue', reveals Zerodha founder Nithin Kamath