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@IAMAI 4th Panel - What Value Do Ad Networks Bring?
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After Panel 1,2 and 3 the 4th panel was on “What value do ad networks bring?” And IAMAI had roped in 4 of the India’s ad networks on the podium obviously talking about why one needs to hop onto the ad network platform and how its is more performance driven. For me it would have been interesting if some clients who had used adnetworks would be on the podium as well as it would have given a clearer picture as to which direction do ad networks need to improve. Also most of the speakers spoke of the lower cost of advertising on an ad network while none spoke about any USP besides for that. Nonetheless the panel came us with some very interesting numbers in support of the ad network space.
Anurag Gupta Managing Director, DGM India gave a good round up on the kind of ad networks that are around.
-Â Â Â Kinds of networks
o   Representation Network (Rep) – Represent publications in their portfolio
o   Blind (low pricing through bulk buy of remnant inventory) - Advertisers dont know the sites on which they are advertisiing.
o   Targeted - focus on specific niche
Amar Goel Founder & Chief Executive Officer, Komli gave some insightful statistics on the long tail of the web.
-Â Â Â 98% visit outside top 20 sites
-Â Â Â 97% outside of top 50 sites (Conclusion - Long tail is sizeable mass)
-Â Â Â Page views outside top 20 websites is 54% and top 50 is 45%
-Â Â Â Time spent outside top 20 websites is 59%
Given the statistics above Amar felt that the goal of adnetworks is to target outside top 20 websites i.e. the Long Tail.
He stated that internet is not a small medium and then compared the reach of English newspapers and online users which are both 30 million each. He felt that there was a need to work with the traditional agency to promote the richness, interacivity and measurability.
Aditya Khanna - Co founder & Business Head, Tyroo Media spoke about how content and ad sales require different skill sets and thats what ad networks bring in for the innumerable small websites out there who have decent content but little ad sales ability.
He also gave some insights into the Indian adnetwork market.
o   Demand is less than supply
o   5 to 6% of current media spend on ad networks will be going to 15 to 20 percent
o   Ad networks are currently competing with search engine marketers and horizontals
o   As ad networks provide a cheaper/cost effective solution they will have demand during recession as well.
o   Though there are too many ad networks its a sign that there is money in the business. But only top three players will survive in the long run.
Ratish Nair CEO of Interactive Avenues stated that ad networks add value by monetizing
unsold inventory which is typically inventory for which advertisers do not pay premium price and hence wont buy from individual sites. In effect ad networks play the role of an aggregator if ad inventory which bring additional revenue to publishers.
Why would advertiser use ad networks?
-Â Â Â High reach among quality environments
-Â Â Â ROI based cpa model
-Â Â Â Total pg in india is 32 bn
-Â Â Â Top 10 offer 16 .8 bn
-Â Â Â Top 100 is 20.5 billion which leaves out around 11 billion impressions on the outside of top 100 sites.
He stated that It is not about targeting once but repeat targetting that can bring better results for an advertiser. So even if your audience is on top 10 sites, they would be elsewhere as well and repeat targetting at a lower cost can increase conversions.
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