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online advertising network provides the information about how the online marketing in place in india and about advertising network activity in india.

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Online advertising in India

Online advertising in India

Internet advertising was estimated as Rupees 100 crore odd in 2005.

I was asked my client for an advice to estimate his sites potential based rankings, target segment advertisers etc. I gave a report.

However, I noticed some curious things on the banner advertising in India.

As per Alexa India wise rankings ( click here ), Pure Indian websites (I mean non US websites which rank high), went without major banner advertisements for at least past 3 months.

As per todays status

Highest ranking Rediff had just two banners (one very small) on homepage.

Naukri had some good banners, its for recruitment. All India companies face recritment issues. Revenue on recruitments is high.

Indiatimes homepage matches rediff on advertising.

All other sites did not have advertising or just one banner (obviously low cost).

Are banner (read CPM) advertisements dead in India?

My opinion is they are very little. Most banner advertising has bee routed through pay per click channel like google adsense, adbrite, oxado etc. I have seen some Indian media carrying yahoo publisher network (YPN) which had Indian banners. Most non channel advertisements come from companies for recruitment, cricket and specific even based.

Its time to give you a tip. The same client for whom I gave that report, had a text link advertising going in adsense. Guess what?

The client recieved 80,000 impressions at a cost of Rs 400. The major impressions were generated in major of Indian news sites ad portals (ofcourse you guessed it right). Back in 2006, I had asked for 100,000 impression for a client of mine in India times, the representative lady quoted around Rs 200,000 - 500,000 (I don’t want to publicise current figures of Indiatimes).

Why do you think the mainstream ad banners are disappearing?

Source: http://frontierindiatech.com/online-advertising-in-india

AdNetwork analysis frequency optimization

Ad Network analysis frequency optimization

Before spending on budget online advertisers looking for some ROI in terms of eCPL or eCPA targets and on the basis of reports renewing the campaigns. Komli media provide us a report which explain how Frequency Optimization Maximizes Efficiency of Online Marketing Spends.

Frequency Optimization Maximizes Efficiency of Online Marketing Spends
The findings reveal that the highest click through rate was recorded on the first impression, while the highest conversion rate was in the 2-5 impression range.


October 13th 2008 (Mumbai, India) - Komli Media, India's leading digital advertising and technology company, today announced the results of its case study analysis of click and conversion rates at varying frequency levels. The study also analyses a click distribution to evaluate the trade off between efficiency and higher conversion rates. Komli Media's findings illustrate why advertisers should include frequency targeting as one key parameter while planning their media buys.

The study draws upon data across the entire network, including regional data from India & the United States. Data was recorded from a randomly selected thirty days during a ninety day time period from June 1st to August 31st, 2008.The results were:

Click Through Rate:
Frequency Network(%) India(%) United States(%)
12.1022.8750.352
2 - 50.0380.3980.211
6 - 100.2430.0270.129
11 - 250.1410.1550.09
Table 1
A run on the entire network boasts the highest CTR of 2.1% at a frequency of one impression per user, which is 8 times higher than the next highest CTR. Regional analysis similarly, recorded highest CTR on the first impression and then dropped steadily as frequency increased. Declining click through rates suggest that a frequency cap could be put in place to prevent wasting impressions upon viewers who are significantly less likely to click on the advertisement.

Conversion Rate:
Frequency Network(%) India(%) United States(%)
14.2064.564.76
2 - 57.46210.115.524
6 - 107.4179.9213.126
11 - 255.2637.3292.498
Table 2
Upon the entire network the highest conversion rate of 7.46% was achieved during the 2-5 impressions per user range, followed very closely by the 6-10 impressions per user range. India recorded its greatest conversion rates of 10.11% in the 2-5 frequency range as well. Interestingly, this is more than double the conversion rate recorded on the first impression. Only slight drops in conversion rates occurred in the 6-10 frequency range. For instance, India only experienced a 0.18% drop. Campaign frequency targeting therefore should include the 6-10 frequency range.

Analysis:
To maximize efficiency of their media spend, the advertiser faces a trade off between media spend and impression frequency per user. To evaluate this trade off we look to the click distribution which details what frequencies yield the greatest number of clicks. Below is the click distribution for the entire network:


Figure 1

For the entire network, the click distribution reveals a pattern of negative correlation between click volume and frequency, meaning that as frequency increases the volume of clicks received decreases.73% of clicks occur during the first impression and 89% of clicks occur when the user views the ad with a frequency capped at five. Such data viewed in conjunction with the click rate allows advertisers to make precise decisions regarding their ad buy.

Inferences:
  • If the goal of your campaign is to reach the maximum number of users at the lowest cost then frequency targeting should be capped at one.
  • While evaluating CTR and click volumes as a measure of success for branding campaigns, the frequency cap should be set at five. This captures 89% of the click volume without wasting money upon less efficient impressions in higher frequencies.
  • Lead focused advertisers buying on a CPM basis should set their frequency cap at 10, to access the higher conversion rates at greater frequencies. Even extremely conservative media spends should in no case set their frequency cap lower than five impressions.
  • Cost per Action campaigns focusing upon greater conversion rates can utilize the data to reduce creative blindness. To avoid blindness in the higher frequency range, the advertiser can design their campaign to show different creatives at different frequencies. The first three creatives could introduce the product while the subsequent creatives could introduce pricing.


About Komli Media
Komli Media is a digital advertising and technology company enabling marketers to reach and acquire their audiences and publishers to maximize their revenues. Komli Media powers Indias only ad network platform with solutions across lead acquisition, targeting, rich media and measurement. Headquartered in Mumbai, with an engineering centre in Pune, Komli Media is also located in Delhi (India) and New York (US). For more information log on to http://www.komli.com.

This originally posted as Komil Media News . It has been reposted with the author’s permission.

Branding VS Lead generation Adnetworks

Cost Per Lead Model Advertising

With more and more digital agencies mushrooming across India. Everyone is ready to sell the Online medium as 100% performance driven metric with every media property/placement/unique users reverse calculated back to cost per acquisition or cost per lead.

When an year ago we just saw Classifieds and OTA’s like Makemytrip,Naukri,Shaadi, Bharatmatrimony advertising and pushing for CPA model today agencies are pushing same to Financial entities to NGO’s.

Cost per lead campaigns on digital medium have been falling in price points from INR 400 per acquisition to INR 50 per acquisition and trust me their is no science to such except for market economics of marketplace dynamics with players coming in to pick up purchase orders under cutting each other.

At the end of it its the advertiser which is still suffering by even acquiring leads at such price points as their is higher cost to qualify them via call centre which agencies are now starting to realize with increasing number of players ready to give them leads at price points lower than their expectation.

Recent meeting with brand manager of a leading Insurance player shed light on dirty tactics of account managers at digital agencies and how they went in pitched to deliver a great scale of Leads at price point less than INR 75 which was almost 50% less than own media plan estimation of the brand manager. Once they went through with the campaign the agency failed at 2 points

i) Scale was only 10% of what they promised

ii) Quality of Lead was very poor

As a backup the brand manager did run campaign on their price point estimation and properties back calculated from CPM,CPC buys and were able to achieve the required numbers they had estimated easily with quality of lead 10X to what came in from agency.

This brings us to very important junction where what price to pay for what lead. Quality of Lead matrix maintained by lot of brand managers showed on an average lead acquired at price points between INR 140-160 on an media plan have higher conversion ratio to sale. As lower price points you goto for acquiring leads lower the quality of leads. Unfortunately as this feedback to quality of leads is not feed back to the media property owners or ad networks they are not able to improve quality of same and are only able to optimize upto the level of acquistion of lead.

Recently lot of advertisers are promoting use of HTML banners instead of SWF creatives which experienced media planners in agencies are quoting to be saying the biggest source of such junk leads.

In such a scenario it will be very wrong to just blame the ad agencies but even the media owners and biggest of all media aggregators like networks which are not trying to get right feedback on right properties and not optimizing their inventories for quality of leads and continuing to accept campaigns at lower price points and find way to get leads at those price points instead of resolving end advertisers problems.

Source : http://ijsid.wordpress.com/2008/09/19/cost-per-lead-model-advertising-what-price-to-pay-for-leads/

Branding VS Lead Generation

That's all because media planners are treating Ad Network as lead generation machine only to fulfill the lead targets and compromising with the quality and focusing on quantity.

When you go for Call Tracking for Campaign Longevity which shows that CPM is always better then CPL and you go for call tracking which will show you the better result and proves that how the CPM branding can help the advertiser to meet their expectation. But Agencies are targeting towards CPL generation, which leads the Ad Network to think on other ideas to sustain in the market.

Besides that, Advertisers are always looking for branding and looking for ROI, but they need to understand that if ICICI and Relaince are doing the branding activities. On the other hand, if agencies are going to target Ad Network as Lead Genration Machine then Ad Network can approach comparatively brands. Able to sell leads to them at cheaper rate and can generate more money but at point of time Branding going to be in the doom and leading the Ad Networks industry to lead generating machine and if this going to happen in future continuously then Advertisement for branding have no meaning.

Online Advertising Industry challenge India

Online Advertising Industry challenge India

Online Advertising seems to be the buzzword in the Advertising Industry these days. It is exciting for all of us in the Internet AD world to note that our media, which is still less than 3% of the total Media bought, receives over 50% of the voice share by the Industry gurus and the press. This attention is largely fuelled by the almost 100% year-on-year growth of this medium and the various industry reports suggesting that 80% of all media bought by 2020 would be digital media.
The proof that Internet Advertising works comes from the excellent growth registered by the early adopters such as the jobs, finance, travel & matrimony businesses. These are the businesses who trusted Internet with a large share of their AD budgets and they are the one’s who have to stood to gain returns.

As much as the small success of the Internet Media excites us, what remains a concern is whether we are ready to face the rude challenges thrown up to this industry.

The Challenges…

Adoption of The Medium
With so much of hype around the medium the bitter truth still remains that only 20% of the advertisers have adopted the medium. The biggest challenge today is that Internet is increasingly getting branded as a ROI medium. A few doubts still remain in the minds of the marketers and they doubt whether this should be the medium of choice when it comes to ROI.

There is no problem with seeing the internet as a ROI medium but is approach to the measure of ROI correct. What needs to be corrected is that marketers need to consider Internet advertising as a tool beyond the lead generator. It is high time that we used the more advanced AD Matrix to measure ROI’s on Internet. The Internet might be at the early stage of e-commerce but it is for sure the most preferred & high engagement medium when it comes to influencing one’s perception about a brand or a purchase decision. But, how many (I am sure not many…..) marketers are really using the right Matrix to calculate the ROI.

Check out the success of the I-Coke platform in China – a community of 20 million users and still growing- and the Adidas worldwide platform. When you consider these examples, you will put aside all inhibitions about the possibility of successfully building Brands and Communities on Internet. I am sure these were campaigns launched with goals that beyond CPC, CPL & CPA!

Marketers just need to be more innovative & evolved with the quarterly sales targets not being the “be all and end all” of it.

Critical Mass
It is very disheartening for me when a client says, “well I like everything that Internet can do for me. But you know I am a mass brand and the reach of Internet in India today is not exciting enough for me to put serious time and money behind it”.

Whether the Internet in India has already achieved the critical mass or not is ofcourse, a very subjective and debatable topic. There is still huge growth potential for both the increase of user base and quality inventory. Many more local ideas are available to create compelling content to fuel the growth of Internet in India. It is true that not every business created on the Internet will have the potential to come out with an IPO. But as long as it is an idea with some value for an Internet user, trust me you will be able to run a decently profitable business. We need more entrepreneurs who can fill the huge gap of quality inventory vs demand.

Infrastructure
Whether it is the Internet or the Mobile, bandwidth continues to remain the big roadblock to unleashing the true potential of the medium. Most innovative advertising solutions are bandwidth hungry and to a large extent the growth of broadband and internet advertising are directly proportional. We are all waiting for 3G to make our mobile phones the true convergence device and suddenly we would add up 130 million users. Advertising on the Mobile is going to be big and would give an immediate upside to Online Advertising. Internet advertising agencies will have to gear up to service the needs to Mobile advertising as a lot of Internet Advertising is going to converge with the hand held device.

People
The average age of executives in India’s Internet AD agencies is between 26-27 years. Why are the traditional advertising guys who know so much about Advertising shy of choosing the Internet? Why is it that not many creative gurus of the leading advertising agencies are willing to do Online Advertising? They all believe that Digital is the future yet they are not adopting it. Is it that they are unwilling to learn Online or the clients are willing to invest almost nothing on the Online Creatives. The same guy who spends almost Rs. 25 lakhs on a TV commercial finds if difficult to invest even a lakh on Online Creatives.

Offline Agencies Vs The Online Agencies
As much as the marketers agree that Online is a high engagement medium for the consumers, they also need to realize that the job of Online Agencies is equally high involvement. It will be unfair when the fee’s paid to Online Agencies is benchmarked with the fee’s paid to the Offline agency. The scale and involvement are both not in favor of the Online Agencies to be compared to the offline agencies. Yes you may find a few desperate-for-business agencies taking your mandate on unviable business terms, but be rest assured that the bigger loss is that of the advertiser because he will never receive his money’s worth with this approach. This approach unfortunately also leads to creating a wrong perception towards the effectiveness of the medium.

Localization Of Medium
Finally, there is serious dearth of local Internet inventory today. A lot more needs to be done whether in terms of local/regional content, vernacular advertising, more targeted IP & behavioral advertising. This will not only make Online advertising more targeted & relevant for the national players but shall make way for the yet to be tapped huge SME advertiser market. In a country where organized retail is less than 2%, the potential of the unorganized SME advertiser is too large to be ignored. Companies such as Google Ad Sense and TYROO are doing a great job in helping consolidate the local publishers and advertisers.

While these are all very real challenges being faced by the industry, I am sure they are not insurmountable. The Internet AD world will slowly but surely grab a much larger share of the advertiser’s pie in times to come.

Comments:

1. As far as the hard work is concerned, Online Agencies work much more than Offline Agencies in terms of client satisfaction and ideas or idea implementation. Given the fact that as compared to an Outdoo hoarding/Bill Board on a highway - you are bound to see it for a second if not read it or understand it ; But for Online agencies the job is much tougher to get an idea/concept which will hold that ‘Close Window’ button of the recipient and actually make him see or read what your collateral is.

2. In India,increasing share of online in the advertising is a good sign.Since various studies suggests that it is one of the best ways top reach the customer.More and more people started depending on internet for their needs .Automobile,banking,matrimonial and real estate information portals are gaining popularity.

And if you have your own thought please share with us.

Source: http://www.thinkingaloud.in/2007/02/07/challenges-facing-the-indian-online-advertising-industry/