NDTV Convergence inks a three year deal with Taboola2 min read . Updated: 01 Oct 2015, 01:25 AM IST
Taboola is the dominant distributor of so-called sponsored content, or ads designed to mimic news stories, a niche part of the online advertisement industry
New Delhi: In a bid to strengthen its digital advertising revenue, news broadcaster New Delhi Television Ltd’s (NDTV) digital arm NDTV Convergence on Wednesday signed a deal worth over ₹ 90 crore with content discovery platform Taboola.
Taboola is the dominant distributor of so-called sponsored content, or ads designed to mimic news stories, a niche part of the online advertisement industry.
NDTV will use Taboola’s mix of free and sponsored stories that will appear at the bottom of online articles on NDTV’s websites to boost its readership and ad revenue as Facebook Inc. and Twitter Inc. remake the media landscape.
NDTV’s consolidated digital revenue stood at ₹ 26.2 crore in the three months to June this year.
According to Vikram Chandra, group chief executive and executive director at NDTV, the company’s relationship with Taboola is a year old and began with content recommendations at the bottom of the pages on the NDTV website.
Prior to that, NDTV worked with another company which fetched them about ₹ 30 lakh a year in revenue. “When we started working with Taboola to scale our business, ₹ 30 lakh went up to ₹ 10 crore in a matter of a year. Now we’re entering into a three year deal worth ₹ 90-100 crore. It just sort of shows that digital content is now starting to come into its own. Contribution of digital advertising which was at 4-5% is starting to change and grow. That’s why deals of such scale are happening," Chandra said.
Taboola will serve as the exclusive, multi-platform content discovery partner across all desktop and mobile properties which are part of the NDTV network. In addition to providing advertisers with an option to now target the premium NDTV audience through native content marketing, Taboola will also work with NDTV to increase user engagement.
Taboola also works with other news publishers like The Times of India among others in India, without any strategic partnership.
“We see India as a massive opportunity for marketers to reach new audiences since so many citizens are accessing the Internet for the first time via mobile, and this partnership is a testament to our commitment to providing Indians with high quality content they may like and never knew existed," said Adam Singolda, founder and CEO of Taboola in a statement.
The media company which has interests in e-commerce charges premium ad rates in the range of $6 CPM (cost per million) in India and $8 overseas.