Having said that, the market, after some initial hiccups and sluggishness, has grown at a tremendous rate since 2004-05. Some reports suggest that the online ad spend will grow to Rs2250 crore by 2009.
We, in India, have in fact adopted growth shortcuts and have escaped the learning curve the US went through. This is something very positive to have happened at this stage.
Could you elaborate?
For example, even at this nascent stage of the market, the online video advertising available in the country is almost at par with that in the US.
We have the strength of database and technology that the US has. We are very democratic in the sense that we do not block any online content, which is very similar to what is happening in the US.
How is online video advertising faring in India?
It is catching up in a big way and limited broadband numbers are the only constraint today. Once broadband usage goes up, online video advertising is going to grow exponentially and emerge as the next big thing in the ad space.
If broadband usage is one major limitation, what are the advantages online has over print and television.
For starters, online advertising has the kind of measurability no other media can offer. You can track exactly the number of people across regions and age groups who have clicked on your ad and shown interest in your product. And it is all in absolute terms. In print or television what you can get at best is only a sample measure.
Internet as a medium is very transparent. It is all out there for everybody to see and know.
Also, ads on websites are much more targeted and focused on specific section of audiences.
What has your growth curve been like?
I started Ozone Media with practically no investment and over a period of two years have put in Rs6 lakh or thereabouts.
Growth has been tremendous for us as we had an ‘early mover’ advantage with very little competition around. To put it in figures we have grown about 150% quarter on quarter and more than 300% year on year.
Startups have now become a trend in corporate India. Being a startup yourself what difficulties do you think such enterprises face in the country?
Startups face difficulties on various counts. Right from incorporating a company, to finding a good CA, to investing into the business, to convincing investors about the viability of the business model, a whole lot of things go into a startup’s success.
Generally speaking, it is very difficult for a startup for the initial six months. But if one survives that one can survive the rest.
Do you foresee stiff competition from new entrants?
The market has already moved way ahead for new players to catch up. Key players are already there in India and the market is well distributed among them. This is not a place like the travel industry where you can have ‘n’ number of players joining in and flourishing alike.
What major challenges do you face as an online network?