Saturday, October 04, 2008

Online Ad Networks in India

Ad Networks have been operating in the Indian online space for over 2 years. They have now started achieving some scale and it is estimated that they now account for almost 15-20% of the online display advertising in India. Buys on Ad Networks have started figuring in almost 75-80% of the media plans.

The following are the kinds of networks:

Rep Networks

- They represent the publications in their portfolio,
- Provide full transparency for the advertiser about where their ads will run.
- Promote high quality traffic at market prices and are heavily used by brand marketers.
- Pricing model : Generally CPM
- Leading examples of Rep networks operating in Indian space - NDTV repping for MSN's inventory, Publicitas Digital.

Blind Networks

- Low pricing model
- Marketers relinquish control over where their ads will run.
- Achieve their low pricing through large bulk buys of typically remnant inventory combined with campaign optimization and ad targeting technology.
- Pricing model - Generally CPC or CPA
- Most popular players - Ozone, Komli, Tyroo

Targeted Networks

- Focus on specific targeting technologies - behavioral or contextual.
- Specialize in using consumer click stream data to enhance the value of the inventory.
- Pricing model - Generally CPM or CPC in some cases

Affiliate Networks

- Fully transparent network focused on Performance.
- Pricing : CPA
- Indian Affiliate network: DGM India

Advantages of Networks:

Reach at lower costs. 50% of page views happen outside the top 2o sites and users spend more than 60% of their time outside the top 20 sites. These users can be reached at a fraction of cost through networks as compared to reaching them through top 20 sites.

Ease: By using the technology & relationships of networks with publishers, an advertiser can reach literally tens of thousands websites through one single window. They can monitor efficiency of the buys also from one single intrface, making it very simple & convenient for an advertiser.

See the following coverage by DNA of a recently held session on Ad networks in India in an IAMAI session:

Ad networks will grow in prominence with time. I personally feel that there will be 4-5 good networks that will survive & thrive easily in India in times to come.