Jivox MD Naren Nachiappan Tells All about BigAdda Tieup, Revenue Share in Video Ads & Future of Video Advertising

Recently BigAdda tied up with Jivox a video advertising platform to both power and monetize its videos. And as promised we got in touch with Jivox Managing Director Naren Nachiappan to know more on the strategy behind the tie ups, the revenue shares and on the future of online video advertising in India.

Q) How do you plan to reach out to advertisers for BigAdda? What steps, strategy are you taking?

There are two parts to our strategy for reaching out to advertisers for BigAdda.

The first is via agencies. Our intent is to support agencies in their use of online video as a part of their media plans. There are many agencies who have a desire to use online video but are not necessarily equipped with the tools, technologies and publisher network to be able to effectively execute an online video campaign. Our intent is to support these agencies and function as their inhouse online video experts. We have relationships with all top tier agencies, and the expansion of our marketing/tech support staff is intended to grow these relationships. Currently, we have offices in Delhi, Chennai and Bangalore and will open an office in Mumbai in the next 3 weeks – allowing us to effectively support agencies nationwide.

The second part of our strategy is to gain exposure for our online video advertising products and services directly to advertisers via our marketing efforts in India. We will be very visible in the online advertising world in India through participation and sponsorship of events such as the last IAMAI conference in Mumbai. This strategy working quite well, as we have initiated discussions with several premium brand advertisers as an outcome of these marketing efforts in the past few weeks.

In each of the above aspects of our strategy, we have positioned BigAdda inventory as premium inventory which is great for targeting an important emerging demographic in India. The response to BigAdda inventory has been very positive from our prospect base, and you can expect to see us initiating several campaigns on BigAdda this month (October.)

Q) What kind of margins would Jivox earn from the BigAdda deal?

I’d prefer not to reveal the specific details of our financial relationship; but will note that it is a win-win relationship.

Q) What are the standard revenue share that you have with publishers?

It depends on the level of engagement, the type of technology we have provided to the publisher, the marketing support for the relationship, etc. A number between 20% and 50% (to Jivox) is the typical range within which we operate.

Q) What are the kind of publishers (size, traffic, type of content etc) that you are looking to partner with in India?

We partner with premium publishers who have a significant amount of video content. We are specifically NOT interested in the long tail model which includes small (relative to traffic) sites with (potentially) unlicensed content. Our advertisers prefer to have their online video presence on those publishers who host premium, licensed content on high traffic sites and can embed instream video ads. Sites such as rajshri.com, ibnlive.com and bigadda.com are part of our network and are great examples of the kind of sites we like to partner with.

Q) What kind of ads does Jivox allow (Pre roll, post roll, player branding?) Also do you have any tools to create these ads for advertisers?

All of the above (pre, post and player branding) are possible with Jivox.

Tools for ad creation are a core part of our strategy. At our public site www.jivox.co.in and www.jivox.com we host a free product called “AdSlate” (http://slate.jivox.com/advertiser/login.php) which allows advertisers and agencies to rapidly create compelling video ads. “AdSlate” has available hundreds of licensed stock video and audio clips which users can use to quickly create a relevant video advertisement. The tool has sophisticated capabilities to add text, images, custom audio tracks, etc. and specify timing transitions between them to completely customize the video, and convey the appeal of a brand effectively.

Q) Who are the current Indian advertisers on your network? What is your projected revenue for the next year/3 years from India?

In India, we have several dozen advertisers. Nokia, Bharathmatrimony and Isango! are a representative sampling of our current advertisers.
As a private company, we do not discuss specific revenue figures, but I will note that we have a dominant share of the current Indian video advertising market as an independent (non-publisher) premium video advertising network and expect to maintain that market share in the coming years.

Q) How big do you see the video advertising market in India to be in 3-5 years? And what would be the reasons for that growth?

It is currently quite small (less than 50 crores), but all indications are that this number will be at least 20x that size in 3 to 5 years. The reasons for the growth are the 1/ increasing availability of video content – which in turn drives the availability of inventory for video advertising 2/ increasing percentage of Indian viewers who see video as a mainstream (and exclusive) medium to receive news, entertainment, etc. 3/ The increasing availability of high bandwidth internet connectivity which fuels the previous 2 trends and finally 4/ requirements from advertisers for media that can effectively convey the unique value proposition and emotional appeal of their brands – which video can do better than most other forms of media.

WATBlog Analysis – The key would be advertiser and advertising agency outreach and also if Jivox can do many more such big tieups then it would have a sizeable online video inventory with some well known brands which would be useful in getting some traction going with the advertiser community and with the agencies. As mentioned by Naren the size of the industry is minuscule so a lot of evangelizing would be required.

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