The extensive reach of mobile handsets in the country has seen advertisers pour money into the medium. Ampreet Singh, co-founder and CEO of 6D Global Technologies-funded mXpresso, tells Praveena Sharma that mobile has already cornered around 16% of the total ad spend in digital media because of the precise targeting that is possible through it.
How is mobile advertising shaping out in India?
Mobile as a medium has been gaining momentum. So, every brand or a potential advertiser wants to use mobile as a medium to reach the core audience. We work with telecom service providers to get details about the consumers and then work on a targeted advertising based on the profile of the consumers across various platforms. On mobile, it is very easy to precisely target your ads. Currently, our service is focusing on mobile phones but we are trying to bring in another piece of technology so that the laptop and the mobile world can talk to each other.
Who are your customers?
We work with all the big clients like Flipkart, Snapdeal, Makemytrip and a host of others, which are in the mobile advertising space. We reach out to 40 brands every month. We have identified the categories which are very active on mobile and a few them which are now getting active. For example, the government is taking to mobile advertising in a big way. Tourism boards are lately getting very active and spending money on mobile as a medium. Currently, the e-commerce companies, travel firms, banking, financial services and insurance (BFSI) sector are major advertisers. The automobile sector is the hottest sector when it comes to spending money on mobile advertising.
What percentage of an advertiser’s budget is going into mobile today?
I don’t have the exact numbers, but spend on the mobile ads is estimated to be around Rs 500 crore in India. Overall digital advertising in India stands at close to Rs 8000 crore. Out of this, Rs 500-600 crore is being spent on mobile alone and it is growing at a much faster pace than others. The two mediums that are growing rapidly in today’s world are video and mobile. It is also a function of demand and supply. Reach also plays an important role. Currently, India has one billion phone users. This means through mobile I can reach every Indian. TV and internet do not have that kind of reach.
How effective is mobile compared to other digital media?
Every medium has its own advantages and disadvantages. Certain categories that I mentioned before like auto, e-commerce and others are thriving and growing faster in the mobile medium. It’s also a function of what your business model is.
What percentage of your revenue comes from overseas clients?
We earn close to 8-9% of our revenue from internationals clients which are based in the United Arab Emirates (UAE), Indonesia and Singapore.
How are you funded?
We raised funds from 6D Global Technologies in October last year. They provide platform solution to all the telecom companies. They offer hardware and software to telecom majors like Airtel, Vodafone, Idea and others across 57 countries. With them on board, we get all the telecom information because they have made inroads into the telcos.
What are your future plans?
We want to invest in building telecom technology which will help profile the consumers more smartly so that the spillover is zero. We are going to get into a very predictive mode of advertising. What it means is we will look at what you have done historically and then find out whether we can predict what you are going to do next. Based on that information, we can decide whether an ad can be shown to you or not. Second, we want to work in the ad fraud space. What we have realised is that a lot of money that advertisers spend on digital advertising is getting lost on account of frauds. Globally, the ad fraud is estimated to be close to $6 billion every year. We are building products and services which will help advertisers identify the frauds and check them.