Posts Tagged 'CPA Model India'

Do Websites Require Ad Networks in India

Last couple of days i have been touching base with lot of online publishers across length and breadth of our country and have been hearing lot of commentary on how ESPN decided to go off Specific Media ad network and go solo in selling their inventory. Lot of them echoed they might want to consider following the same path others questioned the whole ad network model and how its in favor of advertisers instead of publishers.

Wont like to iterate what my response to them on same was but what would like to say is one needs to strongly understand dynamics of the industry before deciding what is best for them. Indian Internet Industry or even global for that matter works on lot of different metrics where for large advertisers agencies act as middle man on planners for finding out best performing avenues for spending clients marketing budgets.

Now this performance metrics could be audience reach rather matching of demographics, traffic generated to their message site, actual performance if its a commerce campaign etc.

Now lot of publishers will say we may measure up completely on all these metrics then why arent we able to access these budgets??

i) Agencies dont like to work with lot of publishers. Its too much logistics to manage as ops is last thing they want to specialize on.

ii)Agencies need scale, single point of contact and ability to undo its wrong mid of plan by change of demographics or variety etc. Which in case can mean moving completely from one publisher to another

iii) Agency like to minimize risk on media plans by mitigating to buy directly on CPA and limiting buy on CPM on clients favorites like Yahoo!,Rediff,MSN even their they negotiate on CPC etc.

iv) Agencies dont like to buy user generated content. even with all Web 2.0 – Forums,Blogs etc are still not hit with them for their marketing spends(except performance advertisers again CPA driven buy)

How do ad networks help

In India performance is not the tag or help optimize your inventory is still not some what criteria for selection of ad network. Its pure access to kind of advertisers and their ability to consume scale of your page view inventory.

How to evaluate an Adnetwork for your Site

Whenever you talk to an adnetwork please have following metrics to see if they are the best choice for you or not.

Q1. How many impressions can they consume from you per month?

Like all 10 million page views given can be consumed or not)

Q2. How big is their sales team? How is it spread?

This question will let you understand their accessibility to advertisers and pressence in all major cities like Delhi,Mumbai, Bangalore,Chennai etc talk about their reach.

Q3. Ask what advertiser campaigns are currently in system?

If you get answers on all DOTCOM’s like MMT,Simplymarry.com,naukri.com etc then you should again be little wary as these advertisers are one of the easier access as they are completely performance driven and wont value your inventory for its demographics etc.

Q4. Do they have a self serve model for publisher management?

This is essential for you to monitor on day to day basis performance of your inventory given to them etc.

Q5. Lastly try to find out what special they do to train sales team on advantages of having you on their network?

Do they prepare any media kit for your website announce to advertisers etc.

Till the time you have money and reach with agencies where marketing budgets are low hanging fruit it still makes sense to setup own sales team and control like ESPN otherwise you should take advantage of these ad networks working more as sales representation businesses in India to keep driving revenues from Internet Properties you own.

Does Indian Digital Media Industry need to be really scared of CPA Model??

Lately we have been seeing publishers and ad networks getting more worried with more and more traditional digital media advertisers like naukri.com, makemytrip.com etc moving towards CPA model forcing publishers and media agencies executing the plan to get paid when they provide returns on advertising revenue spend.

Lot of bloggers and publishers have talked against this model and especially in India where many publisher sales teams are still gunning for fixed slot and CPM deals not accepting even PPC campaigns makes it even harder to make learn the small publishers why they need to start taking risks to earn bigger revenues.

This lead to evolution of ad networks which are brokers which tend to hedge risk between advertising models preferred by advertisers and publishers.This is done by use of various technologies which slice and dice inventory offered by publishers identifying the best audience for advertisers where they can get conversions in return increasing value for both advertisers and publishers. In India apart  from DGM and Komli to just a small extent, none have been really successful on delivering effectively for industry to move towards CPA model.

I would not blame the publisher or ad networks but mainly the advertiser lot available. In india advertisers which are moving towards CPA model are the ones facing situation of extreme saturation. Why for CPA model to exist successfully publisher and there site audiences need lot of variety in terms of ad options etc. Lets look at category of advertisers pushing for CPA Model

* Real Estate sites – magicbricks, 99acres.com

* Matrimonial sites – bharatmatrimony.com, jeevansathi.com, shaadi.com

*  Job Boards –  naukri.com, monster.com, timesjob.com

* Travel Sites – Makemytrip.com, Yatra.com, TravelGuru.com

If you take any of the categories above mentioned there is no product differentiator or sheer difference in features which would also duplicates to their advertising campaigns. Second biggest problem being faced is most of these players have been in market for some time and casual surfers on internet where they are advertising is more likely to already know the brand and would have registered for their services(ex submitted resume on naukri or monster) further reducing chances of RoI. Though lot of people may argue that there are so many people coming online every month hence their is still scale which web advertising can provide to such advertisers. It is surely wrong to comment on the same. I believe conversion cost against the scale available to naukri or monster will be much higher on web display properties as compared to offline branding properties. For these kind of sites inventory created through other new avenues like cyber cafes or through university exam results site would yeild much higher return.  But again going back to the cause of publishers. For them to perform better in this category if they get advertiser like timesjob.com there is still chance of them getting lower conversion cost from display ad as compared to naukri or monster if they dont go for specific behavior targeting.

So how does the above statement help ??

For publishers to flourish and provide scale on CPA or CPL model for advertisers they need lot of advertisers with variety and availability of freshness. In india lot of agencies feel this is a newer model being tried out by advertisers but people are forgeting affiliate marketing has been a very old concept on internet with businesses like amazon, freebee  and commission junction have flourished.  But the main reason for them to flourish or for the model to flourish was availability of more than 500+ ecommerce ventures in US ready to fight out to grow the market and trying hard to reach out to audiences offering some thing different. Why is Google Ad words flourishing today is due to the fact small businesses are trying to reach out to the larger internet audience giving variety of option to users.

I think so digital media agencies need to teach their clients more about nuances also involved with the model rather than just talking pros of saving money. As in short term its returning them and their clients benefits but in long term its hurting the digital media industry overall.

I would also advice smaller publishers to become more about the CPA model and its advantages but they should carefully sit down and identify the right affiliate program they join otherwise they will end up loosing on precious money they could have just earned running low CPM campaigns from any ad network.


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April 2017
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