Wednesday, May 28, 2008

Ad-network storm in India

Ad-network storm in India

A swarm of ad-networks coming across verticals, accumulating inventory through various exchanges and potential tie-ups has warmed up this, rather innocent looking (a year ago that is) part of the Internet advertising industry. Earlier seen as an industry where buying across the Tier-I websites, Rediff, Yahoo!, MSN among others was the key to campaign performance, the situation has now changed drastically. However, it’s begun very recently with almost each interactive agency announcing their own ad-network coming in to the market. However, a very key component missing in many of them, which every ad-network needs to look forward to is technology, which is the key differentiator in this business. One needs to understand that the success of the best of ad-network companies, including Google has come through its excellent technology and self-serve models. It’s the back-end tech-team that determines the key competitive advantages that ad-networks might leverage in the market.

Current Indian Scenario

A detailed look into the market reveals the following ad-networks operational\getting launched in India-

1. Tyroo
2. Google Adsense
3. Tribal Fusion
4. Advertising.com
5. Axill
6. Integrid Media
7. Ozone Media
8. Komli
9. WebChutney
10. Interactive Avenues
11. Paypod
12. Contest2win
13. Adwale
14. DGM
15. Publicitas
16. NDTV Media
17. Ibibo
18. Ad-Chakra
19. Ishir Infotech

One definite conclusion to come out of this is the bright future of ad-networks in India, and this is what’s tempting all the Internet companies to launch an ad-network. The current market scenario is now moving towards where the US markets were a few years ago, with ad-networks coming up left, right and centre. Presently US has more than 200 ad-networks with very less, if any differentiation between them. This is where the role of technology becomes crucial, in providing top-ups over the current system, and building a competitive edge over others.




Where is this ad-network storm moving to?

In desperate efforts to build competitive advantage, ‘Verticalisation’ of ad-networks is happening in India, with category focused ad-networks coming in, aggregating inventory across genres. Another stream of ad-networks is the performance networks, working mostly on CPA models for Finance, Matrimony and Travel portals. And the last and the toughest to execute strategy is one of Horizontal networks, which build a huge network across all genres, trying to work on both Premium and Performance business models.
Inspite of all the competition and new developments happening, ad-network industry can be safely concluded to be still in the initial stage of PLC with ad-network spends on the lower band of the budgets, but the industry is definitely growing (Approximately 160%), and that too at more than double of what the internet advertising industry is growing at.

Tuesday, June 5, 2007

IP Targeting

IP targeting or Geo targeting is used by the best of the Ad-networks. There are lots of different ways to target advertising. Most of them rely on the surrogates of demographics. Demographics are attributes like age, income, education, status or type of occupation, region of country and household size. Demographics can also include the age of children, home ownership, home value and urban or rural location.

IP targeting is the method of targeting whereby, the physical location of a website visitor is determined and different content to that visitor based his location, such as country, region/state, city, ISP or other criteria is delivered.
IP targeting has been the most long-standing method of using “technology” to target users of the Web based on geographic determinants. It has become significantly better recently due to new IP matching companies entering the arena. However, the accuracy of this kind of targeting is how accurately the technology vendor for the site you are advertising on maps IPs to true geographic areas.
IP targeting has been around since the early days of ad serving. It involves writing the code that will strip the IP address from a request, compare it to a database, and deliver an ad accordingly. The next and most important step is building and maintaining an IP database.
One of the first applications of information in an IP database was targeting to specific geographic regions. Most commercial ad management systems have IP databases that can make geographic targeting possible.

The reasons for targeting local in digital media are
A) A local business having reach in only a specific area
B) A national retailer that has reach in a particular locality
C) A national advertiser with a new product testing that product concept and media options to support it in a smaller, representative market
D) A national advertiser that needs to achieve certain communication delivery goals that cannot be reached with national media alone.



It would seem that reasons B) and reasons D) have the potential for being the most compelling use of the Web by advertisers. But one reason not mentioned here that often escapes advertisers in the standard media is one of giving local flavor to a particular product or service.
When you advertise, your focus has to remain on the consumer. A consumer may think globally, but he conducts his life locally.
This is an important thing to keep in mind, especially as so many of us in the Internet advertising industry tend to lose sight of how the general population thinks and feels about their lives and the media they engage in.
“The goal of any advertiser is to make a connection between the consumer and its brand,” asserts Shawn Riegsecker, president of Intégrent Media. “A key to successfully making this connection is to relate or integrate your brand into the daily life of your consumers.
“This is where effectively targeting local audiences comes into play. When done properly, communicating with a consumer at the local level allows you to integrate your message into the things your consumers care most about.”
The practical reasons don’t go away, of course. They simply become part of a larger array of applications for the use of local advertising.