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Saturday, January 31, 2009

WATBlog Update "Saturday Startup Review I - TravelYaari & Blingbees" from "WATBlog.com - Web, Advertising and Technology Blog in India"

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"Saturday Startup Review I - TravelYaari & Blingbees" from "WATBlog.com - Web, Advertising and Technology Blog in India"

Saturday Startup Review I - TravelYaari & Blingbees

Well its saturday again and we are back with our saturday startup reviews. Today we look at two startups which are sort of me too’s but yet in an interesting and growing space.

wat-startup-review

TravelYaari - We had blogged about the shift from air ticketing to non air ticketing revenues and also the role of bus ticketing and makemytrip’s claim of having the largest bus ticketing inventory. Travelyaari is in the same space.

One sentence description: A bus ticketing portal (As of now they are focused on bus ticketing but they could expand to other travel ticketing)

About Startup: Travelyaari is a bus ticketing portal but they also claim to deploy their own computerized reservation system at the operator’s booking offices and agent network which provides them whole inventory on a  “live” time basis. This ensures that 100% of the seats are visible to a user when booking online. This is unlike other similar travel portals who force you to select from the available 2-4 seat "quota" that they have.

About Founders: This startup is founded ex-IIM A folks and the company behind travelyaari is known as Mantis Technologies

Funding Status: : Self funded.

WAT's HOT: The live booking is surely a USP. Also as they are directly connecting with bus operators and agents and providing them a booking client based on the success of their model there could be a revenue opportunity from the operators end as well. On the whole the site has a clean layout and the current focus on bus travel is a good one as non air travel market seems to be on the upswing.

WAT's NOT: Well in its current avatar its pretty much a me too product. The USP is on the back end and not the front end. It claims to of 1000+ bus routes where as Makemytrip recently claimed 5000+ so even size of inventory isn’t the USP. Im not so sure that the live aspect makes that much of a difference to users. Also with standalone players like Redbus already in the market its difficult to say whether travelyaari will scale going ahead.

All in all it seems a me too at this stage though given the nascent stage of the market I wouldn’t write them off as there is a long way to go in this space.

Blingbees - Lifestyle and especially nightlife is a space thats been around for sometime but as seen slow growth. I remember the first site I came across was Bestofbombay.com which still continues to exist though it really hasn’t made any major dents. Blingbees is in this space as well. Lets look at blingbees and what its doing differently.

One sentence description: A nightlife/party news, photos and events social networking portal.

About Startup: Blingbees aims at connecting partygoers with each other as well as to their favorite clubs/bars/lounges/restaurants/events. They do this by covering events and clicking pictures and uploading them to the website. Once an event has been clicked by a Blingbee photographer the event attendee’s can access the same by registering on the site. The site also offers a social calendar that helps you sort photographs by date and venue.

About Founders: This startup is founded by 3 guys whose profiles can be read here and the company behind travelyaari is known as Mayhem Media Pvt Ltd. Ramit Behl one of the founders has had previous experience of working with Merill Lynch and is a Virginia Polytechnic Institute and State University graduate.

Funding Status: : Looks Self funded.

WAT's HOT: The focus of the website is quite good as its trying to be the one stop shop for events and parties. Its not trying to be a burrp.com which is good coz burrp already is leaps and bounds ahead in the lifestyle information services space. Blingbees on the other hand can be termed as a magazine for nightlife and parties. They offer prints of photos and also offer venue information and party planning services. On the whole a nicely packaged focused site.

WAT's NOT:There are a couple of things that stand out like a sore thumb. One of them is their design. Im no design guru but I found it very loud and they could tone down the design a bit as it distracts from the content and the readability. Besides for the design the revenue model is a big question mark. Though they already seem to have advertisers like Nikon and Bacardi its still not a scalable model.

All in all it blingbees seems like a nice to have service whose biggest competition I would say would be facebook. Also how many events can their photographer cover. I feel the ugc aspect of facebook’s events and picture upload far outstrips what blingbees can achieve on its own. I think blingbees would be better served to build a community around parties and nightlife and maybe holding branded events could be a better business model.

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Friday, January 30, 2009

WATBlog Update There are 2 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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Startup Jobs Fair to help connect startups to campuses

We've all heard reports of how the on going financial crisis has really affected the placement scenario. As far as the engineering stream goes, even the elite colleges haven't been spared. The big companies have all stopped hiring, and the ones who are recruiting, are doing it in the binary system.

Headstart.in has come up with a brilliant initiative called The Startup Job fair where they are acting as the platform to introduce engineering and management candidates from top tier institutions to start-ups.

We here at WAT also believe that a start-up is probably one of the best places to start off with. Fresh graduates will get to be part of an exciting team where they can make a huge impact on the organisation.

The start-ups fill out a form with their openings and submit it to Headstart guys who collaborate with the partnering colleges and connect them to the start-ups they are interested in.

startup lunch

However, it would help if the student volunteers who are involved from each college are guys who have a good idea about the start-up space in India. Similar initiatives were taken by the Proto.in team when they came out with StartupLunch which has had successful launches in various cities including Delhi, Hyderabad, Chennai & Pune.

As of now the partnering colleges are:

Management campuses: Shailesh J Mehta School of Management, IIT Bombay; SCMHRD, Pune; SIBM, Pune; IIM Kozhikode; SPJIMR, Mumbai;

Engineering campuses: IIT Bombay, IIT Roorkee; BITS Pilani

Do check their site and register your college with them.

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Will Mobile Ad Revenue Drive Mobile Entertainment?

We have already posted IAMAI report, Mobile VAS is already a big  business and growing at a rate of 70% year-on-year. Atleast 35% of the Mobile VAS revenues are contributed by Music, mostly CRBT and Ringtone downloads. November, 2008’s mobile usage report of opera reflects the obvious that Mobile entertainment business is going to have good times ahead. Gamejump.com, the mobile gaming network and Songs.pk, the illegal MP3 download site figure in the top 10 accessed websites and both of them are ad-supported. Though there are significant revenues in the VAS space there are revenue challenges here as there is uneven revenue share existent between the VAS providers and the operators (highly skewed in favour of operators).

Mobile advertisement might just prove to be the right solution for this tussle, though not big enough right now to provide enough revenues to the VAS providers the advent of 3G and thus the increased adoption of mobile internet will for sure boost the mobile ad revenues.

Times internet might have wanted to grab a good share of this nascent business. Times Internet Ltd has launched India’s  first mobile entertainment search engine, TIL claims this is the easiest and fastest way to search for multi-media content of your favorite celebrity, across ring tones, wallpapers, games, animation etc. TIL is using mobile ad’s for revenue generation, which seems like an obvious choice for the business model.

Only time will tell how soon does mobile advertising become a money spinner for VAS players. There is also MNP which could change the game provided its executed well in Indua.

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WATBlog Update There are 4 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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Adobe AIR crosses 100 million successful downloads

At this year's Adobe Max gathering in Tokyo, Adobe announced that Adobe AIR, their cross runtime environment for RIAs crossed the 100 Million successful download mark. As far as developers went, they claim that there were over 1 million downloads of the AIR software development kit, open source Flex framework and Adobe Flex builder. This is a massive achievement for AIR, whose public beta launch (it was then called Apollo) was in March 2007 and since then close to 400 Adobe Apps have been made by developers all over the world.

At the same time more than 55% of the computers in the world now have Adobe Flash Player 10 installed, and Adobe is expecting this to go up to 80% by mid 2009. As of now, Flash is anyway the most popular software platform with 99% penetration into the world's computers if this study is to be believed.

Adobe said that none of this would've been possible without the help of some amazing AIR applications since they claim that it's these applications that have helped the downloads reach such a number rather than the Adobe.com website

Your browser may not support display of this image.

Here are some cool Adobe AIR apps that you must try out:

Tweetdeck &Twirl: If you're a twitter nut then Tweetdeck and Twirl are by far the best twitter clients out there. Tweetdeck also has a built-in re-tweet option.

Desktube
: A youtube app for your desktop which lets you have complete control. You can watch, search, and download the videos (as .mov fies).

Google Analytics: With this app you can now open multiple tabs for viewing your reports and can also change the date range faster.

Apart from this there's Yammer, which is basically a twitter for business organisations and eBay desktop which makes it easier to shop and sell on eBay.

For the complete list of the top Adobe AIR apps(by number of downloads) go here

So what other cool Adobe AIR apps do you use? Do discuss in the comments section below.

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Q3 09 Results Roundup 2 - UTV, CyberMedia & Web18

As the earnings season continues so does the dismal results for new media companies in the Indian Space. Here are the results of 3 companies which have a sizeable exposure on the digital media front.

UTV - UTV has had a good quarter and the same is reflected by the consolidated net profit of December quarter which grew 29.55% to Rs 29.90 crore when compared to same quarter last year. For the nine-month period ended December 31, 2008, the company registered a consolidated net profit of Rs 87.77 crore, a 76.49 per cent growth over the corresponding period last year. We had interviewed the new media head of UTV Mr.T.N. Prabhu recently and he had stated that UTV New Media expects to breakeven in 6-8 months. They have already done a revenue of Rs.14.3 crore for the 9 month period till 31st Dec, 08. They also have a gaming division which had acquired Indiagames in India and true games in US. Indiagames has been following the strategy of subscription based revenues via gaming for sometime now and have been seeing decent success as well. According to the earnings release Indiagames has reported a growth of around 20% QoQ.

All in all this has been a good quarter for UTV New Media and Gaming divisions and the future looks bright with UTVi.com becoming the 2nd most visited business news site and with Techtree gearing up for mobile revenues.

You can download the earnings release here

CyberMedia - Cyber Media has announced its third quarter results. The company’s Q3 net profit is down at Rs 1.77 crore (Rs 17.7 million) from Rs 1.99 crore (Rs 19.9 million) quarter-on-quarter, QoQ. Its Q3 net sales are up at Rs 21.9 crore (Rs 219 million) from Rs 20.9 crore (Rs 209 million) QoQ. The big news on the Cybermedia front is the upcoming launch of Technology Review website and magazine. The  agreement was signed between Cybermedia and Technology review over 6 months back. The trend for bringing International B2B magazines seems to be catching one with even 9.9 Mediaworx looking at launching Inc Magazine to India.

The entire release can be downloaded here

Web18 - Web18 has had a tough quarter reporting a loss of over Rs.21.2 crores on a reported revenue of Rs.17.4 crores. Their earlier quarter loss was also Rs.24 crores approx. Web18 has plans to go for an American Depository Receipts (ADR) issue and has filed a draft registration statement for an IPO and listing on the NASDAQ exchange. Though the amount expected to be raised via this IPO isn’t yet disclosed.

Web18 has been consolidating all its propertied under the singular basket of in.com. Currently In.com is the second largest Indian portal in terms of traction. The only vertical site that Web18 has still not integrated with In.com is their finance portal moneycontrol.com which continues to be the moneyspinner. In.com has also got several content tie ups now with sister concerns or affiliated companies of Web18 and Capital18. To name a few Bookmyshow.com and  Burrp.com (which is invested in by Harsh Chawla of Capital18). According to our sources In.com spends a lot of money acquiring music rights for its music streaming player which is a major attraction as well as a major cost factor.

All in all In.com which is Web18’s biggest bet has done well to garner traction but advertising dollars are hard to come by in these times so it will be interesting to see how well the next few quarters are for Web18.

You can download the entire earnings release here.

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Recognising Advertising Creativity - Yahoo Goes Uncanny with Uncannies.com

In an initiative to create a common platform to judge advertising creatives Yahoo India has launched Uncannies. Uncannies is basically an advertising portal which can act as a showcase for creative excellence in not just online as one might expect but even traditional media including print, radio and TV. This follows an idea that has often been echoed in various discussions that we need to better the standards of creativity and treat each media with equal but distinguished respect. This initiative from Yahoo certainly puts the equality debate in place at the least I expect.

The official Yahoo word came through Nitin Mathur, Director – Marketing, Yahoo! India, “An excellent creative speaks for itself. Uncannies from Yahoo! India brings together all creative minds of the industry to share their best advertising work. It's also a great platform to discover fresh ideas and showcase top talent in advertising," he said in the release.

More than just being a portal, Uncannies is also a recognition and award forum and is running a contest to find the best creative piece of advertising in each media with some exciting prize for the winners. In order to take part in this contest, participants must submit their work before 28th February' 2009. The entries can be at an individual or agency level, with a maximum of 200 entries per person.

Also, the entries will be judged by an independent panel of experts from industry. Users will also get a chance to rate the shortlisted creative for the entire contest duration. However, the expert panel's decision would be final. Top 3 winners will walk away with an Apple iPhone each, while the next top 100 participants will get interesting Yahoo! merchandise as consolation prizes.

As one of the leading publishers in India Yahoo is sure to have got the wrong end of the stick often with crappy creatives dished out for the web. Initiating such a step would mean improving the standards of advertising creatives which will benefit online advertising as well and thereby bettering Yahoo’s revenues as well. The contest of course being the bait for people to participate actively and make the venture a success in the quantitative sense. Regardless of Yahoo’s intention, one has to admit that it is an innovative step.

While Afaqs already has a showcase of advertising creatives on their website, it is not a benchmark of quality nor is it a platform to judge. Knowing what the best practices are and a judgment on what’s cool has been one of those areas which wasn’t addressed till now.  Yahoo has put itself in a position where it can address this divide, whether it will of course needs to be seen.

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The Idea of Sequential Advertising - Moving Beyond the Context

The growth of contextual advertising online was a major landmark in the growth of the Internet itself. It to my mind democratized the web like no other, giving opportunity for the smallest of web publishers, (while the big ones made acquisitions cool) breaking the stigma on text advertising and on a general note improving information spread on the web. Indeed it took online advertising to a whole new level from flashy banners and blue purple links that website owners pleaded their visitors to click to keep their site free. It also in a way led to YouTube, Blogger, perhaps Flickr all becoming the web 2.0 success stories as the leading online advertising machines hunted for more context within the content.

It’s been over 5 years now since contextual advertising really took off, which itself was 5 years after the biggest name in contextual Google took off, the decade of Google. And perhaps it is time for advertising to move beyond the context, not completely but relatively.

Now I am a big fan of using information and user intellect as a medium of advertising. That is to not pitch rather just present information when you want to promote your idea, brand, product or USP. This is also perhaps the reason contextual advertising worked in the first place. However, with the advent of CPA and CPL ways of working the whole idea of information spread limits itself to a only for conversion campaigns (which is not bad). The fallout of this is that a lot of potential leads (people who could be leads) don’t get through to the system, because the landing page is so well targeted, that they don’t have an avenue to additional information.

However, imagine a campaign which works in sequence. It satisfies a certain requirement of information, bait the user/reader to dig for more information, and then involve him enough to introduce the business side of the campaign. Let me put this in an example.

I hunt a lot for Photoshop tutorials online and naturally use Google to hunt for free tutorials. Now I can be a possible target for graphic and web design schools in India. However, I might not be looking for a course at that instant, and taking up a paid course might not even cross my mind then. So contextually I am a target, while at that situation I am not. I want a free tutorial and in the idea that I am talking about here, an institution will provide me a free tutorial and here begins the advertising sequence. Say I look for “how to make a banner ad?”, the contextual advertising will point me to a resource say “Sponsored link-All about web banner designing, hear what the experts say” and the link points to a page which has some of the best graphic designers talk about their banner ad creatives and small set of how-tos and a link to learn more about graphic designing. We haven’t advertised the service yet, we building it up this way. Showing the scope of a career in designing indirectly, building our credibility as people with access to the best, and at the same time offering the reader what he wants. We can use the design and text on the page to build a situation where I might want to know about a career in designing thereby giving scope for me to buy their service as it is in line with the information I am looking for.

The idea of sequencing information is to build the context and ensuring the context is correct, I think this will improve targeting.

This isn’t a radical concept of course, but it isn’t new either, but it is just the way contextual advertising became contextual advertising. For advertising has always been contextual, it just wasn’t targeted with the precision that PPC campaigns on websites and search engines gave. Similarly sequential advertising has been tried in various media and for that matter even on the web. I consider the Dell campaign on Taking Your Own Path a case in pertaining to this thought.

I beleive this kind of advertising, where we use the web’s forte which is to dispel information as the primary tool of advertising and create campaigns which aid the web users in finding information and thereby building both leads list and the brand as the way forward for online advertising. I admit to not keeping track of a variety of campaign trends as much as a blogger on online advertising should, but like I have mentioned before my judgment and opinions follow what I see and experience myself, and I believe this kind of advertising comples me to not be blind towards them and therefore effective.

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Thursday, January 29, 2009

WATBlog Update There are 2 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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Glam Media Acquires Advertising Startup Adaptive Ads - Opens Tech Centre In India

We had blogged about 6 months back on Glam media’s plans to start Ad operations in India. 6 months later Glam has announced the acquisition of Adaptive Ads an advertising startup with offices in Mumbai and San Francisco. Through the acquisition, Glam Media is opening an office in Mumbai and establishing an engineering presence in Pune, India.

glam-adaptive-ads

Techcrunch reports that Adaptive ads was looking at a series B funding with with a valuation in the $25 million to $40 million. There is no word though on how much was the value of this acquisition. The team leading adaptive ads is of Indian origin much like the CEO and Founder of Glam Media Samir Arora.

Now with actual presence in India I wont be surprised if Glam looks to cater to the Indian market as well. After all as per alexa India as a country is the 3rd largest source of traffic for glam.com contributing over 8% of glams traffic. There are a few players targetting women as a segment in India and one of the recent entrants in the space is Indiatimes with iDiva which was launched recently. There is also indiwo by Web18 group but none of them are that large or as glamourous as Glam.com.

It remains to be seen what route Glam takes in India both in terms of building further traction and attracting advertisers (if at all).

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Makemytrip Claims Largest Bus Ticketing Inventory.. Online Travel Competition Moves To Non Air Ticketing

With more and more people opting out of air travel for more affordable on ground travel the online ticketing business which is right now mainly dependent on air travel is getting affected too, in the recent WATShow interview Deep Kalra, CEO Makemytrip quoted the total online flight booking is down 21% in Nov, 2008 compared to the last year. Makemytrip which has 40% of it’s business in air travel is planning to grow it’s non-air business to 80% in next three years.

makemytrip

Makemytrip, reportedly has now grown into the largest online bus ticket inventory, It now claims over 8,000 buses, 500 bus operators and over 5000 routes across 14 states in the country. With enough cash flow from it’s Series C funding of $15mn, Makemytrip is going aggressive to capture a larger pie of this huge volume business. As a special offer it is offering 20% cash back to travelers on all bus tickets booked on the website.

This move of Makemytrip might severly affect the smaller standalone players in the market like redbus.in and the recent travelyaari.com but it might not affect much of the holiday package players in general. Redbus.in the prime mover in this space is trying to differentiate itself with the ease of access, it has recently gone mobile partnering with ngpay.

Though still a nascent business, Online Bus ticketing in India is growing at a fast pace lately at a rate of 30% year-on-year, and has a huge untapped potential. It also looks like the competition in the online travel segment is moving away from air to non air segments.

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