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Saturday, February 7, 2009

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

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

Saturday Startup Review I - Rupeetalk.com

Well its saturday again and we are back with our saturday startup reviews. We are covering a lot of self funded startups lately but we thought it was about time we reviewed a funded startup but one which is not much blogged about in the online scene. So here is startup review no.1 for today!

wat-startup-review

rupeetalkRupeetalk- Well rupeetalk as the name suggests is an online portal focusing on financial product comparison. There are several companies now is some or the other financial vertical comparison space all working on providing leads to banks and financial institutions. So to startoff this isn’t a really unique model.

One sentence description: RupeeTalk is/will be a one-stop solution to everything related to personal finance.

About Startup: Rupeetalk is currently providing online services to its customers i.e. product comparison across financial service products. In the future it plans to add offline aspects of customer services as well. i.e. after comparison once a customer decides what suits his/her requirements best. He/she then applies for the product by filling in his/her details or leaves telephone number for Rupeetalk customer service executive to call him/her on the preferred time and also visit their home to explain the products. Its three-pronged strategy of 'Search, Compare and Select' which rupeetalk is following.

About Founders: Rupeetalk is founded by Satkam Divya, an IIM Lucknow alumnus in December 2007 who was joined by another IIM-L graduate Deepak Singh. Rupeetalk CEO & MD Divya has worked with some premier banking and financial institutions like ICICI Bank and Times Money, while  Deepak Singh, COO and JMD, was with ICICI Lombard. 

Funding Status: : Funded for about a million dollars by Seedfund

WAT's HOT: Well to start with its a compresive comparison site with comparison available across loans, insurance, fixed deposits etc. What is also appealing is the tab based comparison engine which drives down the focus of the site as a comparison site.

They have a dedicated information section called the learning centre which has Guides, Tips, FAQs, Glossary and  a 5 Point Guide across financial products. Surely a good resource for a newbie wanting to engage in financial product buy.

WAT's NOT:Well while they are comprehensive in covering the vaious verticals of financial products they are not so comprehensive when it comes to financial players. They mostly had data from the newer players like Barclays and Reliance Consumer Finance and very little from bigger players like ICICI bank and Citibank which also explains why their logo is not present on the site. We understand their their business model revolves around generating leads and charging those leads to these financial institutions but the quality of any comparison site is based on how comprehensive it is and rupeetalk fails in that department.

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. They also have a million dollars backing them which means there is room for improvement as well as the money to make it happen.

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Friday, February 6, 2009

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

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

Happy Birthday Facebook, But Where's the Beef?

Facebook turned 5 years old a couple of days ago and the hottest topic that everyone's been discussing is how are they going to make money.

happy-birthday-facebook

With funding of over 500 million USD which includes Internet giant Microsoft and nearly 70 billion page views per month, Facebook does have the numbers to keep more and more people interested to put their money in it, but where are the numbers when it comes to the revenues?

The last we heard from Facebook regarding the money they're making ( which is generally very secretive), was when Mark Zuckerberg announced last year that their 2007 revenues was 150 Million USD and that they were expecting 350 Million USD by the end of 2008 as their projected revenue.

The question everyone is asking is what will Facebook's core source of revenue be?

Fred Wilson over at A VC has a brilliant summary of various business models that an online venture can employ.

Now that you've checked that out. What's it going to be for Facebook? True, Google, the biggest success story of our times took nearly 3-4 years before they discovered Adwords and they too had developed a huge community of loyal Googlers before they started making some real money. But now after half a decade, people all over are starting to wonder where does Facebook go from here?

It has to take care of their thriving developer community too who as of now aren't really being paid by Facebook yet are growing everyday. They need to be sure that Facebook is going to be around for a long time with a real business model. What I mean to say is that the really popular application makers do make money from third party networks, but what about the lesser popular app developers. They need an incentive too right?

True, Facebook has the advantage, being one of the most popular website on the internet, but it has to find a way to capitalize on it.

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Tieups Update: Moviemart - HDFC and Indiatimes - Flora2000

movie-mart-logo

Moviemart has tied up with HDFC bank to provide benefits of upto 50% discount  to the bank's credit card users.

The discounts would range as follows:

10%off on monthly, 20% on quarterly, 30% on half yearly and 50% discount on yearly subscriptions.

Updates on Moviemart:

They recently tied up with leading logistics company TNT to improve their logistics strength.

They were recently nominated as one of the hottest startups by TATA NEN Due to their impeccable service records and looking at the fact they started the online DVD rental revolution in India as they were the first company to enter into the market.

Our take:

This comes on the heels of similar or more discounts from Bigflix to ICICI bank credit/debit card holders which suggest that these companies are finding it hard to make many subscribers at their current prices and thus taking the route of tie to improve their subscriber base.

This again hints at a possibility of serious price cuts across the chain of online DVD rental companies because doling discounts to only few would definitely discourage other users.

Indiatimes Shopping partners Flora 2000 :

shoppinglogo211

It seems upcoming  valentine day provided an opportunity for Indiatimes shopping to hitch a tie-up with flora2000, a leading flower services provider across the globe in as many as 150 countries.

This deal would help Indiatimes Shopping to expand its product base in the flower category and would even allow them to  provide delivery of international destination within 24 hours.

A few thing about flora2000 and indiatimes shopping:

Flora 2000 has been a key player in the flower industry for the past 10 years, and has a strong network of over 3,000 vendors and florists in over 150 countries where it deliver flowers.

Indiatimes shopping offers the widest range of fresh flower arrangements at the most competitive prices in the online shopping space.

The services includes order of flowers online by customers and payment options ranges from a wide array of payment options, like net-banking, credit cards, flying miles, pre-paid cards and mobile banking. The flowers are delivered on the desired date. The customer also has the option to personalize by including a message for the recipient.

Our take:

More tie-ups could soon follow because Indian e-commerce portals find it difficult to grow on their own and the turbulent economic growth is just adding salt to their wounds.

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MTNL rolls out 3G Commercially In New Delhi, India

Yesterday we reported MTNL introducing voice email service for both of it’s wireless and landline subscribers, now MTNL has become the first telecom operator in the country to commercially launch third generation mobile services. The state owned company has invested Rs 4Bn to rollout 3G and are hoping to have 200,000 subscribers within a time span of two years.

mtnl3g

Though the private operators have hit a bummer with the governement delaying the auction for spectrum, MTNL has been allotted the spectrum on the condition that it will pay the fee quoted by the highest bidder when the auction takes place. Though the MTNL customers are finnaly getting to use their 3G handsets,the service is very expensive.

A 3G user has to pay a one-time fee of Rs 500 as activation charges and a monthly rental of Rs 599. In addition, customers will have to pay for the calls they make and also for data downloads. For making calls to another operator's network, MTNL users will have to pay Re 1 a minute. For calls within MTNL's own network charges will be levied at 60 paise a minute. For applications such as Live TV and movie downloads Subscribers will have to pay Rs 5 for each MB download. For video calls, MTNL charges vary between Rs 3 and Rs 1.80 a minute. The MTNL customer can make an internation call using VOIP for as low as Rs 3/minute to more than 100 countries including Europe,US and Canada.

The service is currently available in the New Delhi Municipal Corporation area in Delhi. However, the company is investing Rs 500 crore to roll out a network across Delhi and Mumbai with an aim to get 2 lakh subscribers over the next 2 years. Because the initial rollout of 3G in India is voice centric, we can specifically see improved quality of voice calls, more and more people using VOIP services, especially we can see people increasingly use the services like SKYPE, which let users talk freely with good voice clarity.

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NDTV Launches A Youtube Like Platform - Calls It Tubaah.com

NDTV Convergence has launched a video aggregation site called Tubaah.com which in look and feel looks like a complete Youtube clone with features like users creating their own tube (i.e. channel on youtube), ratings for video by users and embedding and sharing options. In short a full fledged video sharing site. But just to make sure they don’t run before they can start to walk with the new age user generated content Web NDTV has restricted uploads. So no user can upload any video to this platform though he can tube (favourite) his video and create his own personal collection of favourites.

tubaah

This launch marks NDTV entry into product creation of sorts. As earlier they taken the partner route to launching verticals be it NDTVAnswers (which not defunct), NDTVTravel or NDTVJobs is now getting serious about creating its own platforms where users can engage with their own properties rather than benefit partners for revenue share and see them walk away with the database after the alliance is terminated. Case in point being NDTVJobs and Yellojobs partnership.

They also ventured into non news content when they launched NoGyan a weird/whacky news portal.

The Tubaah platform currently has 50,000 short-duration video clips, sourced from six NDTV channels, including NDTV 24X7, NDTV India, Metro Nation and NDTV Good Times.


Sanjay Trehan - CEO of NDTV Convergence (Who was also on the delhi WATBlog Panel) told Afaqs that they are looking at tying up with TV Channels that are not owned by NDTV group who will upload their videos on Tubaah.com.

Afaqs also reports that NDTV Convergence will launch the mobile version of Tubaah in 3-4 months time. All in all this does look like NDTV’s biggest foray into mainstream product internet beyond their existing news verticals. The success of this platform alongwith NoGyan would pretty much define NDTV Convergence’s fortunes in the Internet space.

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Thursday, February 5, 2009

WATBlog Update "Google Launches Multiple Inboxes For GMail - Its Like Having Multiple Screens!" from "WATBlog.com - Web, Advertising and Technology Blog in India"

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"Google Launches Multiple Inboxes For GMail - Its Like Having Multiple Screens!" from "WATBlog.com - Web, Advertising and Technology Blog in India"

Google Launches Multiple Inboxes For GMail - Its Like Having Multiple Screens!

Google really seems to be in the groove. We've been covering a lot of Google stories in the last 2-3 days and here's another one.

From what it seems, Gmail is going for subtle and not so subtle changes. Every day another feature gets added through Google Labs. The subtle changes include vanishing of the search the web browser at the top and inclusion of a separate move to/labels tab.

Now Google Labs has introduced a new multiple inboxes feature and it's quite interesting.

It's creator introduces it in this blog post:

"I’m seriously into filters and labels. All the email I get related to Flash goes under my “flash” label, everything about paragliding goes under “flying,” and they all skip my inbox because that’s how I like to stay organized. But when new email arrives I have to switch to the “flash” label first, then click on “paragliding,” etc. I wanted a way to see it all at once."

To select this feature, head over to Google Labs section and enable Multiple Inboxes. And the end product? Here have a look for yourself.

gmail multiple

You can obviously choose how many inboxes you want. To do the same go to settings and select the Multiple Inboxes tab (after you have enabled the feature). There is great personalisation. You can select the labels and even the number of posts you want to see so that you're screen isn't too cluttered. This is what it looks like

gmail multiple inboxes

I think it's an awesome feature because its almost like having 2/3 screens at once as far as mail is concerned and makes it very convenient if you're using a lot of labels.

This feature was created by Octavian "Vivi" Costache in his 20% time that Google offers their employees. Do check the feature out and then discuss it in the comments section below.

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WATBlog Update There are 7 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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Would you wait for a website to load for more than 4 seconds?

Back in November 2006 at a Web 2.0 conference Google had some interesting facts to share about speed, user experience and user satisfaction.

They asked a group of Google searchers how many search results they wanted to see. Users asked for more, more than the ten results Google normally shows. More is more, they said.

Google ran an experiment where they increased the number of search results to thirty. Traffic and revenue from Google searchers in the experimental group dropped by 20%.

Why did that happen? Didn’t users want more?

Well Google found an uncontrolled variable.
The page with 10 results took 0.4 seconds to generate. The page with 30 results took 0.9 seconds.

Half a second delay caused a 20% drop in traffic. Half a second delay killed user satisfaction.

Amazon.com had a similar experience…
They tried delaying the page in increments of 100 milliseconds and found that even very small delays would result in substantial and costly drops in revenue.

So how have things changed over the past 2 years?
How long would you wait for a website to load?
4 seconds? 10 seconds? 30 seconds?

Since I’m part of popular gaming website in India, I know that a user won’t mind waiting for a particular game to load. But he gets really impatient when the homepage doesn’t load really quick.

A lot of financial decisions are also made based on the heaviness of a page. Video ad networks ask us to put their tags on pages which take a minimum of 10 seconds to load. Though this might irritate the end user, having a quick loading page can make a video ad lose its impact. As a portal do you put a banner size limit for clients?

The tolerance level varies. A return visitor to your website will be more forgiving but a new user won’t. In the modern day when a regular net user is surfing with multiple browsers and dozens of tabs open, even a slight delay will equate to a loss of a visitor.

At the time of writing this post, I have more than 20 tabs open!

Speed matters. People do not like to wait. Do not make them.

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MTNL Introducing Voice Email & BSNL Low Cost Video Conferencing - State Owned Co’s Move Ahead

MTNL, the government owned Telecom company and Mumbai & Delhi’s leading cellular service provider is now offering Voice email service for both of it’s wireless and landline subscribers. MTNL has over 7 million subscribers both landline and mobile to which One Voice’s Mobile Voice service will be offered beginning this month. This means that now the MTNL subscribers could read and send email messages from their Yahoo! Mail, AOL Mail, Gmail, Hotmail or corporate accounts, all from their existing landline or mobile phone. MTNL estimates in the next 12-months that over 300,000 MTNL subscribers will subscribe to our MobileVoice service. MobileVoice gives these subscribers immediate access to email, anytime, anywhere and from any phone.
The technology for the MTNL’s voice email is provided by One Voice Technologies, a developer of 4th Generation voice solutions for the Telecom and Interactive Multimedia markets.

In early 2008 MTNL had planned to invest Rs 1500 crore for the completion of major network expansion, which included phasing out all long-standing technology and installing a new state-of-the art IN network system. In December, 2008 MTNL became the first telco in India to launch 3G mobile phone services with roll out of Video call and Mobile TV service in New Delhi. The recent move of the company makes it evident that it is determined enough to stay ahead in the telecom market in these cities.

It is also reported recently that BSNL, another state owned company and a telecom major is now set to launch a low cost, web-based video-conferencing system from the first week of this month in the Kolkata circle. The cost of web based video-conferencing is very less compared to traditional video-conferencing where capital expenditure and maintenance cost was considerably higher. The technology for the low cost video conferencing is provided by a Delhi-based company CEPL. The tie up with CEPL is revenue-based and the capital cost and the entire service management, including hardware and software was its responsibility, sources said. Calcutta Telephones would offer four tariff plans from zero to Rs 1,999 rental to suit every pocket. The usage charge would vary from Rs 12 to 5 per minute depending on the plan tariff.

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Windows 7: To be launched in 6 versions with a beta release in Hindi

windows_7_graphic

The speculations are rife that Microsoft latest upcoming operating system windows 7 would be launched in 6 different versions.

The company in order to avoid clash of versions would heavily promote only two versions i.e primary version for consumers which will be called Windows 7 Home Premium, and the one for businesses which will be called Windows 7 Professional.

Versions to be launched:

Windows 7 Home Premium:: main promoted version for home users.

Windows 7 Professional:: main promoted version for business and professionals.

Home Basic :: It would mainly be used as OEM VERSION.

Starter edition:The Starter edition is intended for sale in developing countries

There would also be a Top-end Enterprise version for big corporate customers and a similar Ultimate version for consumers. Those versions will include security features and a few other tools not available in the two main versions.

Does game of plenty work?

  • Microsoft first encounter with multi-tiered versions of their product started with windows xp which was launched in versions like home, professional, media centre edition etc…this practice of launching plenty of versions in the market seemed to have paid during xp time but was not so successful during the time of vista launch.
  • This multi-tiered approach results into a increase in use of pirated operating systems in emerging markets and the reason being that people believe that the core or simple version may not be enough for their work and higher version being unaffordable they go for piracy route.
  • It make cumbersome for people to decide which version to go for their use.

Why does microsoft play this game:

  • The main reason for launching multiple versions with different functionality is to remove price barriers and make it more accessible to buyers.
  • This again helps in fueling the volume growth or the sales growth for the company.
  • The company is able to leverage the brand Rep of its flagship operating system to sell different versions of it which again does not put too much load on advertising budget.

Microsoft has also said  in a statement that changes to the way it communicates about Windows 7 should `make these choices as simple and clear as possible for customers and partners.”

Microsoft launches windows 7 beta in Hindi:

HindiPPT10

  • Microsoft has announced that it has launched windows 7 in Hindi.
  • The new initiatives is again followed by launch of  Language Interface Packs (LIPs) in 12 Indian languages for MS Office and Windows.
  • The company has also announced a total of 45 additional virtual keyboards for these languages.

According to the company,”This would facilitate company to overcome the language barrier to computing,and has showcased a variety of custom made products directed specifically at the vernacular language market - a market that has been largely left untapped till now.”

If you want to download windows 7 beta in Hindi just go here and click Hindi in the dropdown box.

End note:

This could be followed by full fledge launches of future releases from the company in Hindi and other vernacular languages and in turn suggests that Microsoft is waking up to seriously notice the requirements of emerging markets which could provide it the next big opportunity looking at capping of I.T budgets in its prime markets.

This could further imply  good news for PC and Internet penetration in India as it would finally see a robust growth due to breaking of language barriers.

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Topchalks.com - Attempts To Be Your Teacher Online - Our Review

Topchalks.com is furnished to provide audio-visual study materials, designed by the country’s few renowned teachers, for students of class 12th appearing for CBSE (Central board), PSEB( Punjab Board), and HSEB (Haryana Board) examinations. The materials are categorized in three sections - full subject material, chapter wise material and Test Packs. In case you are assuming topchalks to be an online portal where you can log in and get these materials for free, then let me break your assumptions - No, nothing comes for free and topchalks also follows this age old universal truth.

topchalks

Another addition to topchalks’ kitty is the audio-visual lecture for CAT aspirants. Apart from these, there are two other segments - SAT & IIT-JEE- under the ‘coming soon’ category.

Money Matter :

For one month’s usage, one subject’s full material on topchalks costs Rs. 299( exclusive of service tax), a single chapter costs Rs. 49 and a Test Pack is priced Rs. 99. The charges vary as the number of subjects increase and the duration for the accessibility to the resource extend.

Does topchalks have a place under the sun?

Agreed that Internet has invaded every part of Indian life, but India is yet to become America to allow easy Internet access to a 12th standard. The number of Internet users at that stage is less.

topchalks may argue that these study materials could be a savior when one misses one’s classes, but a sort of virtual class can do no good. topchalks, perhaps, is a result of impetuousness of thoughts. using CATscan  may not be that bad a choice for CATers  but for 12thies, our traditional mode of real classroom lectures and hard copies would prove more useful.  After all, from topchalks’ materials one can only hear voices and view few formulas and statements of a topic being explained but one cannot interrupt the saved audio-visual-only lecture to get a troubling doubt cleared. Only a real lecturer can do so. And for that one must be present in a concrete, real classroom with a teacher in flesh and blood.

And if your viewpoint does not match mine, you sure can take look at topchalks.com

Post submitted by Guest author Suhani Dewra who is part of Campusfever core team

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Google Latitude - Know Where Your Friends, Family & Foes Are In Real Time!

The latest mobile application that comes from the Google arsenal is called Google Latitude.

And what does it do?

It tells your friends and family where you are and vice versa. Yes, I know, I know, the privacy issues. As of now there have been mixed responses from around the web. But we'll get to that later.

So what features does Latitude boast of?

The whereabouts can be tracked on a Google map using it's My Location feature, either from a handset or from a personal computer. Besides the friend's locations in Latitude you can also get in touch via SMS, Google Talk, Gmail, or by updating your status message.

Google tries to make all the info optional, which means that you get to choose who gets to view you, and if you do choose to let them keep a track over your position, you can also control what you wish to show them. So the next time you ditch your girlfriend for a cricket match, you can prove to her that you were in the hospital taking care of your cousin using this "fake" feature.

google-latitude

I know what you did last summer..

For all those who like the service, there are many many more who just don't see it's point. This group obviously feels that their privacy will be in danger. Imagine, if every moment of your existence, someone knew where you were, what you were doing. More over, the information is stored on Google servers. Now imagine if Google decides to mess with people, its not like they don't have enough information about you already. Now they will know where you are with pinpoint accuracy (if you're using a GPS enabled phone) or reasonable accuracy if you don't have GPS.

Google also released a video explaining the privacy features of Latitude and how to use it best.

google privacy latitude

And what about the costs?

"The only cost that the consumer will have to pay is the data packet charges that are levied by the mobile operators. This has no revenue advantage for us since this it is not linked to sponsored advertising, we just want to promote the use of maps on phones," said Vinay Goel, product chief, Google India.

But then again, it makes one wonder, how could such a service be leveraged in the future?

Competitors?

Loopt which claims to "transform your phone into a social compass" is quite similar to Google Latitude supports upto 100 phones including the Iphone (unlike Google Latitude). There's also Pelago's Whrrl which "allows you to discover the world through the eyes of your friends and other people you trust."

More info

For the list of countries and languages which support Google Latitude, check here and yes, India is one of them. Strangely the Iphone comes in the coming soon category, this will surely bring a frown to the face of many. Why? Well according to Wired Magazine since Latitude is an always-on service (meaning it will be silently operating in the background), it runs afoul of Apple's iPhone SDK. Google is reportedly working on a version of Latitude for the company's Google Mobile App for the iPhone.

Google has posted a video showing the various ways to control your privacy and suggesting some tips on how to use Latitude. The video can be found here

To share your location from your desktop computer visit google.com/latitude and install the Latitude iGoogle gadget.

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NYTimes Plans Paid Subscription for Online Content Again

New York Times, one of the most widely read websites on the web is planning to make access to its online content paid once again. NYtimes used to follow paid subscription model for its content till two years back when it made the content open and free. The idea was to test out advertising revenues by opening up to more traffic with easy access to content. This meant that certain sections called the Times Select which was only available on the monthly subscription of $8 opened its gates to non paying customers.

Clearly, the move hasn’t worked well for the media powerhouse. NYT Executive Editor Bill Keller had this to say: "TimesSelect generated something like $10 million a year, which was real money, but in the end the company calculated that we'd be better off taking down the wall and letting the flood of additional visitors to the Web site attract advertising dollars. The lesson of that experiment, however, was not that readers won't pay for content." In other words, advertising isn’t raking in enough money to warrant free content, especially when they had people pay up earlier.

The company has been going through some hard times financially since over a year now, first having recorded a major 4th quarter loss in 2006, which was followed by job cuts as the rising costs and dropping revenues called for a staff trim. It even sought some financial investments last year, and later Carlos Slim put in $250 million into the business. The funds were expected to help NYtimes meet its immediate money needs.

To my mind the NYT guys didn’t really need to pull out their paid model in the first place (I know easy to say with hindsight by the side), especially when it was bringing in good numbers. I am a firm believer in the value of content driven websites, and value is best judged through what the reader is willing to shell out to get access to. That’s the reason certain magazines cost in the range of 150 while the others retail at 25. In fact having paid content subscribers straightaway puts a premium on the advertising happening on the site as well. The targeting and the offshoot of brand loyalty towards the publisher pushes the brand image and advertising goals of the product further. It also helps publishers maintain quality, help them with content research as well as get some really specific details about their audience.

On the other hand, this experiment on their part would have its effect on increased paid subscribers from among the millions of new readers that came with the change in the site structure. So, the loss during the period can be considered notional and as investment in getting a more stable and bigger revenue stream as well. However, considering the uncertain times economically, whether people would want to pay a premium for exclusive content is debatable.

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Yatra Opens Up To Ads - A Sign Of Revenue Pressure On OTA’s?

Yatra.com the OTA backed by Reliance Capital and Capital18 has announced that its opening up of its travel site for advertising. Yatra.com is pitching itself to be the destination which is visited by a userbase which is ‘most filtered, targeted and premium audience – people who access the internet regularly, are comfortable transacting online, spend more than Rs. 5000 on an average, own a credit card, live in top 10 cities in India, fly frequently and take holidays very often - both domestic and International’.

yatra

My question is wouldn’t the above userbase be same for all travel sites? Or is yatra.com’s ticket prices more expensive than the other OTA’s and there by the premium audience? In that case its not surprising they are looking towards online ads rather than scaling ticket sales.

Anyways Yatra also claims to have roped in advertisers like Nokia, Airtel, Citibank, HP, ICICI, Reliance Communications, Tata Indicom, Hyundai i20, Mahindra Xylo, Fiat Linea, Maruti Suzuki and some more. There is no word on whether these are through an adnetwork or directly to yatra.

On the point of performance vs branding based advertising Nikhil Rungta – Head of Marketing for Yatra.com said, "We will offer both branding and performance oriented solutions. For branding we have customized sponsorship packages and web banners; for performance we have an extremely qualified database for lead generation, SMS and e-Mail marketing,”.

We hope they don’t spam people in the name of performance marketing. Given the recessionary environment and pressures on revenues dont be surprised if some websites you signed up ages back start sending you 20 mails a day!

Now the BIG question: Will advertising work on a Travel Booking site?

I have my doubts on the same. See its the objective the user comes for on a website. I expect Click through rates to be dismal on Yatra.com and even if impressions are high there is a difference between impressions and actual visibility of the ad. Users come to sites like yatra with a clear objective i.e. to book flights, rails, buses etc. So only relevant context ads like hotels, tourism related, luggage brands might work from a visibility point of view as these ads will catch my attention given my mindset at the time of booking the site. Also creative has a large role to play which is grossly undermined and not considered into the equation when one talks of perfomance marketing.

All in all I would be surprised if given the times Yatra does garner sizeable revenue via ads. More that building revenue it might just compromise the user experience on the travel site and cause a dip in the travel bookings. A place where ads might work better would be Yatra’s travel content community portal Raahi.com.

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