A boon for online advertising

It’s not yet a serious threat to print, outdoor or television but ad networks are helping online advertising rapidly creep up on traditional media platforms in terms of revenues generated. Industry analysts expect online advertising revenues to reach Rs 800 crore in 2009-10 from the present Rs 600 crore. “Advertising networks” serve as brokers between advertisers and web publishers, connecting sites that want to sell ad space with advertisers and agencies that want to reach potential customers.

Advantage ad networks Ad networks help reach audiences at a lower cost They assist advertisers reach out to relevant sites and target groups The network ensures a brand is present on several sites instead of just one or two Revenues from online ads are expected to reach Rs 800 crore by 2009-10, from Rs 600 crore now

The concept is not new to India, with the likes of Komli Media and Tyroo already present. But in the last six months there has been a rise of this medium with Ibibo launching Adwinks; Interactive Avenues launching Ad Magnet; and Capital18-funded WebChutney launching Networkplay. More recently, Microsoft Advertising has softlaunched its international online ad network, called DrivePM in India.

Why ad networks? According to Prashant Mehta, COO, Komli Media: “Ad networks help brand marketers reach their target audience in a less complicated manner.” Adds Ratish Nair, Co-Founder, Ad Magnet: “Ad networks assist publishers in selling their unsold or remnant inventory thereby contributing to higher revenues.”

While many like Alok Kejriwal of Games2win, which has launched Inviziads, a games ad network, feel the ad network market is still at a nascent stage, others like Nair say the market is maturing and ad networks will soon become a mainline internet media vehicle. This is evident, he says, from the fact that more and more clients are testing out ad networks as part of their online media plans. Also, some of the larger US ad networks have entered India.

—Anusha Subramanian