NDTV Convergence, the online arm of NDTV has tied-up with Zapak.com, to introduce game service called NDTV Games. The site is powered by Zapak and currently offers more than 25 games in different genres.
Afaqs reports that Zapak would be sharing around 70 per cent of advertising revenue with NDTV despite most of the white label deals cracked at around 50-50 revenue equation. This would leave NDTV with big advantage as it would be getting a lion’s share in the deal despite all the monetization responsibilities continue to reside on Zapak’s end. as NDTV Convergence would be responsible for monetizing the content on the site.
Rohit Sharma, chief operating officer, Zapak.com, says, “We want to expand our user base beyond the users who are in the age group of 10-25 years. NDTV.com offers us this opportunity as it gets a lot of traffic from the age group above 25 years, who access the Internet from office.”
NDTV also has service tie-ups with Careerbuilder -NDTVJobs, CarWale-NDTVAuto, Ads2Book-NDTVPrintads. NDTV recently clinched an advertising deal with Affle for its mobile portal –NDTV Active.
White label services-benefits?
Zapak and other portal are focusing more on providing such white label deals to Online biggies as this garners them enough audience and Online exposure in short time and lesser cost. It recently announced gaming portal tie-ups with Cricbuzz.com and Glamsham.com. Zapak even expects to garner 15-20 per cent of total Web traffic to come from its content partner sites in the next six months.
The big publisher stands major benefits out of such deals as it helps them in diversifying their bouquet of services and also increases their revenue count without requiring any major capex.
The competition in such deals has also helped publishers to demand greater revenue share and better support. The over-dependence on such service could also be a cause of worry for publishers. Many Portals like IXIGO has also opted for affiliated white label deals to garner higher market share.
The link to Cricbuzz.com is wrong. Its pointing to glamsham.
Thanks its corrected.
Hi
How does this kind of a deal work commercially? Does zapak pay some fees to be featured on NDTV or is it NDTV who pays zapak for the content zapak owns?
Could someon share any information on this please?
@Sunil
Basically portals like Zapak creates sub-domain(mini) sites for big publishers like NDTV.So when any revenues flows from that site it is shared.This thing is introduced by many online portals as such white-label solution helps reduce cost and helps in diversifying for Big publishers at the same time attracts larger audiences for themselves.
Thanks Raghav.
Apart from revenue sharing, is there any monthly fees component involved in such deals? If yes, who pays whom?
@Sunil
No there is no advance payment involved in such deal.
@Raghav
A not Publicized fact would be payment of monthly fees by Zapak to NDTV thats how usually these deals work