The Goldspot syndrome of net advertising – By S.V. Krishna*

I frequent a kirana store, where the same Goldspot- the old fizzy orange drink- advert remains painted on its wall for the last twenty five years. This advert is neither targeting an audience nor is it creating brand awareness. But it has succeeded in creating some bit of nostalgia for people of my generation. But it is a plain (damn) uneasy feeling- I was not too fond of the soda; and to make it worse the advert reminded me of punishment in school and cricket matches televised with only one camera.

Thankfully times have changed, but not the functionality of it. The Goldspot syndrome has taken over the net. I was so pissed off with soda based internet advertising. Adverts that showed on websites seemed similar to the queries I had made on Google and I would see the same companies again and again. I wonder why were publishers selling their inventory to static banners on the net and I bet the companies advertising did not see any return on their investment for such banners.

To make it worse- If I made a query on logistics- I would see a host of company adverts that did only logistics. I did not get what I wanted. Suddenly one day I was surfing the Disney website for a package and what did I find as I went in to another site- I found a customised Disney package waiting for me to grab. What frightened me was that the package was customised to my needs.

Curiously I began asking my friends in the adnetwork world as to what was happening. A couple of them said that real time bidding for inventory coupled with predictive analysis of user behaviour was becoming the next best thing for advertising on the net. I am certain that this kind of targeted advertising will create better RoI for the advertiser.

Are there companies trying this? I can think of one company that has already done this and its business model is based on technology licensing plus revenue share of a sale made based on predictions. Firms that made a business out of licensing ad serving platform are going to become redundant in this new world unless they build smart targeting tools and sophisticated data analytics algorithms. The smarter Ad network firms are all scrambling to build tools with lots of data analytics and predictive algorithms.

The world of the net is getting deeper and this sort of business can be scaled up. Then there is so much data on user behaviour that advertising online is going t change drastically if one knew what to do with it. VCs will invest in such companies.

The kirana store is finally repainting his store, certainly the net does not want to be stuck in this Goldspot syndrome forever.

(*S.V. Krishna is a journalist who has worked with some of the leading Business Publications in India. He is a guest blogger for Viedea)

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About Deepak
Venture Capital and M&A advisor, Entrepreneur, Startup enthusiast..

3 Responses to The Goldspot syndrome of net advertising – By S.V. Krishna*

  1. Ravi says:

    Great post! Folks solving the syndrome are being handsomely rewarded! Check out – http://mwne.ws/eWbrih

    • S V Krishna says:

      Thanks Ravi,

      Do you think Indian entrepreneurs can scale such businesses, especially with our brains in the mathematics, IT and the advertising side combined. I think we can become a creative hub for the world with predictive models being built by us.

      Also, how long will Indian advertisers take to view this model seriously. I hope such ideas like Rocket Fuel happen in India and do not fizzle out.

      Thanks once again.

      Cheers

  2. Gautam says:

    Krishna

    There is one firm in India that has built sophisticated solutions for targeting. Check out Vizury (www.vizury.com).

    Regards
    Gautam

    PS – I am an investor in Vizury

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