Small Publishers and Ad -Networks

I was recently going through a study conducted by Tyroo.com , which they have posted for public consumption here which attempt to bring into light how the small publisher market is operating with respect to India. While i dont deate the facts and fiures published , i was reasonably surprised to see the data skewed because of one issue which they did not mention or address , in my opinion, basis that , the study , atleast parts of it stand redundant.

If you go through the study , there are a few topics which are  totally off..

  • Do they prefer ad networks..and why?
  • Relevancy of ads
  • Revenue Preference
  • Payment preference
  • Reasons for preferring ad- networks

..They are off because the biggest reason for small publishers preferring ad networks is because they dont have a choice or any other options

Think about it , a blogger or even a few levels up is not going to have the resources to be able to put sales guys on the field to source advertising from agencies. One he cant afford it and secondly if he is small , chances are that the appeal of the website to the agency is not going to be present to begin with.

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Can Adnetworks be more exciting?

I was doing a lot of research over the last few days for a project, and being the net junkie that I am, a lot of it took place on the net.  While surfing, avoiding pop up’s, deliberate redirects and possibly every trick in the book for click fraud firms, I started to think about 2 words – advertising and internet.

In the Indian context I doubt whether anyone would oppose me if I said that Ad networks here are living and working with only banner ads, what I consider aging methodology. Banner’s, text ad’s, skyscrapers are slowly becoming and will die out as the preferred medium in the years to come, its already happening elsewhere. Why then are we so fixated on this format?

The answer has to be money and ROI eventually, everyone needs a return and turn over a profit as soon as possible, irrespective of the fund reservoir that they have, the fastest way to do this is to not actively be innovative but adopt and fight on platforms already existing in the market….and maybe that’s the problem, maybe that’s the reason for the clutter.

Saying one is CPM, another is a CPC is not good enough in my opinion. The inventory remains the same, its only the performance criterion which changes, and upping one level does not translate necessarily into better realization of goals.

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Komli to serve ads on Ebay India….. so?

Komli get’s eBay – one too many blogs were buzzing with the signing of the deal which allows Komli to serve ad’s exclusively on the Ebay India website for a year. Congratulations and wishes were pouring in from everywhere and people referring to it as a deal which will shake up the Indian internet scene and a move which was long overdue. One would have easily missed the few comments posted which spoke about having apprehensions on the tie-up.

What do i think? …..simply..what’s the big deal?

The fact that ad networks would be looking at signing exclusive rights to publisher inventory in this market is not an insight, its common logic. The problem has always been on the projections and the deliverables.

From Komli’s point of view they get a big brand to boast about in the market. Their transaction category gets a face lift and seemingly the ability to negotiate higher rates within that. ..at least that’s what they think. But i don’t see it happening that way. Ebay India is a very very poor cousin of its parent company or other regional specific sites , anyone who knows the domain would know this. The transaction volumes going through ebay here would be nothing compared to those in the US or the UK, and hence that many less unique visitors / registered members on the site. Ebay India quotes its community size in India at 2 million. I think it would be safe to assume that a good 20% or so would be inactive members , one time transaction type of members which would then leave it with around 1.5 million.

1.5 million is not big , its in fact pretty small and Komli would probably have sites within their kitty which exceed this size. 1.5 million visitors in turn does not translate into a huge number with respect to impressions. Couple this with the fact that the Indian side is not a very strong brand and what is one left with ? Continue reading

Google’s New Forumla

How many of you were/are aware that google is in the process of rolling out a change in the formula which determines top spots placements for advertisers. The news is relatively old, being announced on August 2007 and the changes coming into place from October 2007 but is probably one of the most important changes made by Google in 2007.

Current formula is based purely on Quality Scoreand takes into account the actual CPC. Goggle however believed that this can be refined even more and should be considering that under the current equation, an advertisers placement depends to a large degree on the bidding characteristics of the advertisers below them, a factor not in control for the advertiser gunning for the top spot.

The change will be to take into account maximum CPC rather than actual, which allows for greater control towards this objective. This is also expected to increase the overall quality of the top ad’s for the users and give Google a larger pool to choose from.

Advertisers are harsh when it comes to the internet.

While this may lead to a flood of comments picking at everything i have written , I am still going to pen the following thoughts down.

I believe that advertisers on the Internet are, comparatively,too harsh on the Internet and the online medium. Their expectations are often unfair and with respect to the larger picture, despite having proved it self as a strong , accountable , economic medium the net needs to prove it self over and over , every campaign , everytime. Why ?

The problem lies in the medium itself. One of its biggest advantage is its weakness as well. The internet offers accountability and tracking which before it , was quite frankly, a dream…. and advertisers have literally gone overboard with it.

Just to take an example lets consider a recent campaign..Maruti Swift ,lots of fanfare everywhere… lots of TVC’s , lots of half page spreads in the national dailies. Cars got sold , car sales saw a rise, people got to know about the product. Lots of articles , Autocar feature planning was done well blah blah. The marketing department at Maruti is still patting itself on the back , and the agency thrilled with the invoicing. Everyone’s happy……

….but i have a question.. i want to know which TVC , in which language, at which time spot on which channel on which day , targeting which demographics in which region , which city, did the best……. and the same for the print ads..and the same for the articles. How many cars got sold basis the review on Autocar….. yes… anyone?….. no one? cmon….!!… so many crores at not one detailed stat for me???

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