Publicitas to manage online ad sales for Reuters, ABP Group2 min read . Updated: 06 Nov 2007, 11:48 PM IST
Publicitas to manage online ad sales for Reuters, ABP Group
Mumbai: Multinational advertising sales company Publicitas Digital Pvt. Ltd, part of the Publicitas Promotion Network (PPN), has said it has arrived at agreements with Reuters India Pvt. Ltd (for the website www.reuters.co.in), Games2win India Pvt. Ltd (for www.games2win.com), the Anand Bazaar Patrika Group (for the websites of all its publications), and industry body Internet and Mobile Association of India to sell advertising space on their online properties.
Publicitas, which started operations in India in April, has previously not announced details of its customer base. It did not reveal when these arrangements were signed.
“The Washington Post does not have a sales team globally. The Publicitas group does it for them. In Europe and the US, Publicitas is the online sales representative of some of the largest print houses. The annual sales of Publicitas are higher than that of most big publishers," says Neville Taraporewalla, chief executive officer and online media director, Asia Pacific region, Publicitas Digital.
According to Taraporewalla, Indian publishers do not know how to “monetize" their websites. “Publicitas Digital provides outsourcing solutions to these online publishers for managing their digital advertising space at the international and domestic level."
I. Venkat, a director with the Eenadu Group, says that while he is not sure publishers are monetizing their websites, he isn’t convinced they need an “intermediate party". “Unless Publicitas Digital can deliver significantly higher (online advertising) than what the publishers already get, I have my doubts on how this will work."
Taraporewalla says that unlike advertising agencies that drive “prices down and give chicken feed to publishers", Publicitas was “on the side of publishers... Most online publishers do not realize the value of inventory they have online. They need to be patient and careful about how they are driving price," he adds.
If the client wants Publicitas Digital to create the ads (in the case of most online properties, the publisher creates the ads for advertisers), the firm will outsource it; and Publicitas also helps advertisers reach the right group of customers through behavioural targeting.
“We think that Publicitas with its global expertise will be able to manage our digital assets for us. Its strength is that it can also tap international advertisers that are aiming to make an impact in India," says S.N. Bhaduri, general manager, Reuters India. Bhaduri adds that the tie-up between Reuters and Publicitas was only for India. He declined to comment on the revenue-sharing arrangement or the pricing of Reuters’ ad space.
According to Taraporewalla, all the company’s deals are on a revenue-sharing basis with the publisher retaining a majority portion. He says the company is also working with mobile value-added service providers, mobile operators and media firms to effectively monetize text-based mobile inventory and WAP-based mobile inventory.