Social networking in India: Ad spends remain low, but future looks promising

Social networking has been gaining tremendous popularity in India with social networking site Orkut even being declared the Pepsi-MTV youth icon for 2007. However, despite growing number of users, advertising spends on social networking sites in India remain low. But experts see this scenario changing in time.

e4m by Rishi Vora
Published: Dec 3, 2007 6:31 AM  | 4 min read
Social networking in India: Ad spends remain low, but future looks promising

Social networking in India is growing and how. According to a report by IAMAI, of the total Internet user base of over 23 million in India, 8-9 per cent of users were active on social networking sites, with Orkut (having significant user base from India) making it to the Top 10 most recalled brands among Internet users in the world.

According to a report released by eMarketer on the 2007 ad spending on social networking sites, non-US spending was $335 million and by 2010 this figure is expected to rise to $970 million. There is no definite figure forthcoming on India’s contribution to this non-US spending figure. Industry experts felt there were several constraints in terms of usage deterring the influx of ad revenues in the social networking domain.

On the competition side, some Indian sites like Fropper.com, Desimartini.com, Yo4ya.com, and others are already vying to grab a larger share of the online user base in India. These sites are likely to give the likes of Orkut, Youtube, Facebook, Myspace and other popular international websites a run for their money in years to come.

Given the nascent stage of this new medium, a few Indian websites are focusing on providing user-friendly applications. Fropper.com features ‘easy blogs’ to attract new users and build communities around them, while for advertising, Microsoft recently launched Sponsored Spaces on Windows Live Spaces as one of their new ad platforms. The company boasts of an ‘easy-to-buy, easy-to-sell’ approach that it brings to its advertising solutions.

However, the general belief among advertisers in the online business is that the Web is just a new medium with a lot of buzz, and that it has no such potential to replace or affect the existence of any of the traditional media like the television, radio and print.

Roadblocks to advertising on social networking
Rajnish, Head of Sales and Marketing, MSN India, said that the stability aspect of the users was a major hurdle. He added, “Currently, users are moving from site to site, and there is not much stickiness seen in their usage pattern. Until the user base becomes more stable and mature, it will be harder for advertisers to target a specific audience and thus, monetisation of content for the bloggers will take some time to kick off.”

Navin Mittal, Head, Fropper.com, pointed out that advertisers were averse to investing on social networks as Internet in India was still low in usage. Another problem deterring ads on social networking sites is that there are very few professional bloggers who blog for a living in India. It also becomes difficult for Indian bloggers to earn over the Net as the foundation has to be set in terms of creating a fan following via whatever work they do on the social networking sites.

Rehan Khan, Founder, Yo4ya.com, said that in the initial stages of the business, most websites concentrated on quality content by getting more users, engaging and binding them together in a community so that they could produce far better content on the Internet. “Advertising is secondary because until you have quality content that gets in more readership, there is no question of advertisers knocking at your door,” he added.

Split-up ratio among users and service providers
The general ratio of users and services providers is 50:50. There have been a few entrants in the market such as Weblo.com, which deals in selling profiles and cities for real cash. The company plans to give 66 cents for every 10,000 impressions, and $10 for every 1,000 impressions once one crosses the 10,000 barrier.

However, Rajnish has a different view on this. He said, “It’s hard to say what the ratio would be in terms of revenue generation right now as we are yet to reach that level of functioning.”

Effect on existing models
Experts believe that existing models of advertising in India are undergoing a change with growth of the online medium. Moreover, with the introduction of newer online technologies and services, the trend, which is spotted by the industry players, is that traditional models of advertising are slowly and gradually diminishing in terms of value proposition.

The fact remains that advertising on social networks is more or less aligned with online advertising, and with most online advertising offering greater degree of personalisation, future looks only bright and promising for advertisers and also for the bloggers who can earn and gain popularity at the same time.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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