Zapak Spending 2 crores on Ad Campaigns! What About ROI??
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When you are a Reliance ADAG backed internet company then funds is never a problem. When Zapak was launched there was an announcement that Reliance ADAG would be pumping around 100 M $ into gaming. Im not sure how much of that 100 M $ is already spent but im sure their marketing spend has exceeded multiples of crores given the TV ads, Celebrity endorsements/games, Gaming competitions and online and offline marketing that they have ventured into this year.
Just recently zapak also roped in Bipasha Basu for a game and now it seems the unending flow of marketing money still continues with zapak now pumping in 2 crores in promoting their multiplayer games. I myself have seen these ads on movie theatre screens especially the ones owned by Reliance ADAG group.
Check the ad in this video
While writing this post im wondering as when would the ROI kick in for a company like zapak? They seemed to have invested a lot more than any other gaming company in trying to become a national household brand for online gaming but revenues at what ever levels they might be today (Im not sure of the numbers at all) would surely be miles away from the overall investment they have made and continue to make in this space.
All in all its possible that the other players like games2win and indiagames might benefit more that zapak (with respect to ROI on investment made) in the gaming space as they would be indirect beneficiary of a market and industry expansion due to zapak’s huge investments.
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Yet another post of yours that sucks. Do you know the meaning of ROI. ROI is not just money. For some customers, making people visit their site is revenue. For others, it could be making people sign up or fill up some form or make an actual purchase.
Don’t name your blog as a advertising blog, if you don’t know this simple concept.
As far as Reliance is concerned, everyone in the industry knows that they invest huge chunk right in the first year and change the entire market. They are most aggressive than any other company in the world. When they invested 20000 crores in Reliance infocomm, everyone in the world called them crazy. But they broke even in 1.5 years.
Same is the case here. With zapak and their new social networking portal, they are essentially changing the market and make people start using online gaming etc. Wait for a year and learn the business strategy from them.
Yet another post of yours that sucks. Do you know the meaning of ROI. ROI is not just money. For some customers, making people visit their site is revenue. For others, it could be making people sign up or fill up some form or make an actual purchase.
Don’t name your blog as a advertising blog, if you don’t know this simple concept.
As far as Reliance is concerned, everyone in the industry knows that they invest huge chunk right in the first year and change the entire market. They are most aggressive than any other company in the world. When they invested 20000 crores in Reliance infocomm, everyone in the world called them crazy. But they broke even in 1.5 years.
Same is the case here. With zapak and their new social networking portal, they are essentially changing the market and make people start using online gaming etc. Wait for a year and learn the business strategy from them.
Prabhu,
http://www.prabhu-s.com
Thanks again for your feedback. Dont know about zapak but Looks like you have perfected the art of free marketing with maximum ROI (I Like the way you are marketing your link below your comments)
..
But jokes apart. I think the days of hits on the site being ROI are long gone! yes zapak is expanding the market no doubt but the beneficiary could be the smarter gaming players who build sticky games rather than 2 crore campaigns. Also comparing reliance infocomm to zapak is like comparing chalk and cheese. The revenue models for gaming in india is still to kick in (whether subscription or ads) while infocomm always had a revenue model in place.
In anycase. Im hoping this does make you understand our point of view. I understand yours and im glad you expressed it.
In a city where noone uses slippers, the one who encourages them to wear one first will be the market leader in the future.,
IMO, Zapak is the Leader in the online gaming space in India, ROI will follow soon.,
All that reliance have to do now is to integrate
all their online portals and they will surely capture a sizable internet audience in the coming years.
That was a really funny comment by Prabhu!
“For some customers, making people visit their site is revenue.”
Yes! You spend Rs 20 per user to get them on your site and then you charge a client Rs 5 (CPC) or Rs 0.10 (CPM) to take him away.
That makes a lot of sense…eh Prabhu?
Though I like seeing the money being spent by Zapak and BigAdda - as long as they are looking at targeting non-internet users in India and getting them online! This is only going to help the other internet start-ups out there….a larger pie to take a piece out of.
Well said Ekalavya… interesting topic Rajiv
In my opinion Reliance is aiming to develop stickiness for their internet properties. They are concentrating on increasing the share of “time spent on online gaming related activites” of an average internet user in india. At the same time this war-chest will also help them build a brand in the digital space. (2 Cr is a small amt from this perspective)
The Zapak brand once entrenched can be extended to mobile games (very lucrative after 3G), DTH interactivity (BIG TV is in launch phase)and who knows they may even launch their own gaming console.
Yes ROI will be a priority for Mr Ambani (whos known for his relentless pursuit of PAT) but i think he is in a brand building mode.