‘Advertisers Are Investing More In Internet To Target Young Generation’ – See more at: http://www.businessworld.in/news/opinion/interviews/advertisers-are-investing-more-in-internet-to-target-young-generation/1213362/page-1.html#sthash.52uDDdTA.dpuf

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According to recent surveys, India is the third largest market for smartphones globally. With smartphones becoming an interactive media tool for reaching out to targeted audience, advertisers are trying to get more revenue by posting ads on mobiles. And that’s why companies like Ripple which provide GenNext rich media and video advertising network for all smart devices (PC, Tablets, Mobiles, Smart TV’s and more), are becoming important. Anuj Kumar, Co-founder and Managing Director, Ripple, an Affle Group company, discusses why advertisers are eager to spend more money on mobile advertising despite spending a lot on television, print, radio ads and road shows. 

How does Ripple contribute to the advertising function for mobile platforms? 
It’s been 18 months we have launched Ripple. Ripple is a cross-screen advertisement network. We are in digital world market, where consumers navigate content across multiple devices. Most advertisers who want to reach out to these modules bases, face a lot of challenges because they have to work with different companies that are in the PC and website domains. Here we have created a technology platform that allows advertisers to reach out to highest potential users across various devices.

Ripple caters to newer content formats such as video and rich media being consumed actively on multiple devices. If someone asks us about how people interact with the advertisements on mobile platforms, we simply say that this is the area where we specialise in.
– See more at: http://www.businessworld.in/news/opinion/interviews/advertisers-are-investing-more-in-internet-to-target-young-generation/1213362/page-1.html#sthash.52uDDdTA.dpuf

What was the idea behind the origin of Ripple?
Look at it from an Indian perspective. India is one of the leading markets in the world where mobile internet consumption is higher than personal computers. Most of the time, people engage through their mobiles – they access game, apps, social media sites, mails and content through it.

The mobile devices have too much of international content and not enough domestic innovation is taking place. The content we use in our devices usually are made for some other markets.

Any developer, who has to build for mobile, does not see enough revenue from Indian

advertisers for advertising himself. For instance, it is started by writing a blog from the system and just integrating with Google ad words and starting to promote the blog page on social media websites. After sometime, the blog starts making money. This is not the case in mobile. As compared to the PC users, the mobile users are more  in numbers and growing on a daily basis but they don’t earn money easily.

We create an ecosystem in which we can spur greater innovation from the developer community. The developer doesn’t understand advertising and that’s left to the media companies. They don’t know how to approach big companies like Nokia, Coca-cola which have a separate budget for promotions and advertising. 

The starting point of Ripple was when we realised that a lot of action is taking place in mobile internet. We could see a lot of scope and that a lot more innovation can take place if we build a greater economy of advertising in India. That’s the point where we started the idea of Ripple by building the screen solution (rich media ads).

How does Ripple work with enterprises? Are you providing an advertisement server?

There are two ends of enterprise what we serve. One is the publisher community, such as Yahoo! Facebook etc. Yahoo! is one of our clients. However, their mobile revenue is very low. So they partnered with Ripple — ‘Mobile ads on Yahoo’ — exclusively managed through the Ripple platform. This is one approach where companies work with us exclusively to monetise the mobile sites, mobile apps etc. That is one side of the enterprise sales.

The second approach is to advertising communities. We tell to advertisers that we have the technology to reach out to the right people. We provide a more engaging experience. We pitch and show them the list of publishers on which advertisements will be available. So they give us more of the budget to be put on mobile content. At the end, both the parties should be satisfied with our services. The advertisers include companies like HUL, Samsung and all are happy through our technology because they can reach out to most relevant audience.

What kind of advertisement do you run on the Android platform? Is it Android-centric or does it support other platforms as well?
We work for both the iOS and Android. We see the largest growth happening on Android.

How do mobile ads help corporates increase their revenue?
We figure out the time when women/men are surfing most in a day. That is the time when we push the advertisement to relevant people. For instance, we have an Elle 18 ad banner and we have to run it on Yahoo! website. We need to figure out the most relevant time when women can actually click on that. We go to the advertiser and say we have the technology which can build out the platform through which consumers can experience your product. Through our technology they can figure out when mostly women surf mobile internet and we can push the advertisement at the right time. The ads are not there for the entire day. These ads come only when we push. Elle 18 is a youth product and we are targeting the youth by scanning their mobile internet surfing time. We can make more money by running those ads on the sites which are mostly surfed by the young generation such as Facebook, Femina and etc.

Why are advertisers eager to spend more money on mobile advertising when they are already spending so much of money on television ads, print ads, radio ads and road shows?
The times are changing. Of course, they are spending through different mediums. They are also maintaining social networking sites such as the Facebook page, Twitter etc. So they are investing in Internet to target young users be it personal system or mobile internet. People spend most of their time with mobiles. So companies want to reach out to them via mobile internet. It is also a very private space where we make the advertisements targeted at the relevant people. 

How are big brands using mobile apps? 
BMW is going to launch a sports car and wanted to reach out to the targeted audience. So we have built an app with all the customised feature so that an user can choose colour, check out the interiors, wheels and many things through our technology. And this ad will go to the customers who are searching/looking/going to buy a new car. we push the ads to the portals like NDTV, Crickinfo and which are relevant to the product.

They wanted to target the audience who are relevant customer or can be the future customers.

Now you have entire websites which are now available on your mobile. For example, we are selling ad to BMW. These are revenue share with the publishers. I will share the revenue which I am earning from advertise and I am giving a fixed amount to the publisher.

Why publishers will allow you to post advertisement on their site?
We share revenue with the publishers. There is a percentage which has been fixed to pay to the publishers (It can be 40 or 50 per cent of the revenue). So by posting ads on the website which are pushed by us they are not doing/creating/selling ads to the advertiser. We are selling and making ads for them and paying for the space only. It is like we have rented a mobile site’s space to run advertisements.

How much does one need to pay for one time picture advertising and how many page views does it deliver?
We have multiple sales models for mobile display ads. These include CPM (advertiser paying based on number of ad impressions served), CPC (cost-per-click – advertising paying based on the number of clicks) and CPA (advertiser paying for number of actions like engagements/downloads/leads etc.). All these three sales models co-exist and are based on the objective of a particular campaign. Our team would recommend the most optimum model. Ad campaign sizes also vary a lot by category of advertiser and overall campaign budgets. However, if I was to look at aggregate level data for our India operations, the average mobile campaign size would range between 10-20 Lakh. The total impressions which we can deliver on Ripple in the India market currently would be more than 11 billion per month (basis Q3 data) and growing at over 30 per cent QoQ.

What is your revenue structure? What is your cost per click? How much does a person need to pay to get your services?
Our revenues come from advertisers who are keen to communicate with the over 70-million Indian digital audience which our network would reach monthly. Pricing of inventory varies by several factors like (1) Targeting for a campaign. The more targeted a campaign, the higher is the CPM/CPC ((cost-per-click)) 2) Ad axperience served. Simple banner ads come cheaper vis-a-vis rich media ads which deliver 8-10 times of the banner engagement levels (3) Competitive forces – as premium inventory is limited, pricing is driven up or down due to demand supply parameters. Thus in high advertising periods like festivals, we would see network CPCs (cost-per-click) go up by 40-50 per cent as a lot of competing advertisers are trying to outbid the other to reach to the same audience. The cost per click on the network would thus vary by the above the parameters and would usually be in the Rs 3-10 range.

How are Internet and mobile marketing growing in Indian environment? Are people serious about mobile and Internet marketing?
Digital marketing in India is growing at over 30 per cent annually. IAMAI currently pegs the digital ad market to reach approximately 3,000 crore by March 2014, with mobile advertising contributing to up by 10 per cent of it. We are seeing significant growth momentum for the industry and would estimate mobile ad growth to significantly outpace PC ad growth. In the coming year, we would forecast mobile ad spends to grow by 70-100 per cent. From an advertiser stand point I think 2013 has been a significant year for mobile advertising as we have seen over 100 per cent growth in the number of advertisers on the medium and expect these trends to continue in 2014 too. – See more at: http://www.businessworld.in/news/opinion/interviews/advertisers-are-investing-more-in-internet-to-target-young-generation/1213362/page-1.html#sthash.52uDDdTA.dpuf