Vertical Ad Networks Vs Horizontal – The Ongoing debate

There’s been some buzz now for a few months over Vertical ad-networks coming into the industry and the impact that they will create. It was , too obvious, that there will eventually be a confrontation between the networks already established in the Indian market ( read : Horizontal) and the new kids on the block like Webchutney’s Go-Sindbad and Divanation and it would only be a matter of time before the industry starts debating with respect to the pro’s and con’s of both , and media planners wonder which ones to go for.

For me , surprisingly i should add , it appears to be rather simple. The major driving force behind the argument for Vertical networks is that they contain sites which are similar in terms of what they are catering to i.e travel , the sites included in such a network would cater to hotels , air fares, train bookings etc etc , each with an individual objective but related to a larger singular category – the assumption being that such a vertical will thus offer the best exposure to a travel related advertiser given the relevancy which exists and since its so relevant , advertisers in turn would pay a premium which consequently would drive up eCPM’s for the publishers and everyone’s happy.

Sounds good for everyone , but unfortunately that’s not they way its necessarily going to work for a few reasons in my opinion.

1. What is so different between a vertical network and a horizontal network offering the same channel with equatable strength ? In some ways, a specialized channel for a horizontal is nothing but a vertical network in itself. All that a Horizontal needs to ensure is channel targeting and then add further targeting options.

Continue reading

Advertisements

Network 18 Invests in Webchutney

Another rumor floating around which has been been squashed a while ago.

Network 18, through its Capital 18 arm has bought stake in one of India’s most creative agencies Webchutney. The stake though substantial, is in a minority. The funding will be primarily used for expansion – infrastructures, people , Social Media and Rich Interactive applications.

The majority stake i hope will help Webchutney retain full freedom and independence in its operations , creativity and planning , for which it is known. Hopefully this extra funding will see them really shoot ,aggressively, further into the industry.

Read chutney’s own blog post on this here.