Emergence of online ad networks

Saturday September 19, 2009
Emergence of online ad networks

THERE have been as many as seven new online advertising network companies entering the local scene since Admax Network began operations last year in Malaysia, says sales director Kelvin Tan.
This growth is “healthy and a good sign of more spending being allocated to ad networks,” he tells StarBizWeek.
Kelvin Tan... ‘You should only choose the channel that meets the campaign’s objective.’
“This proves that online advertisers realise the importance of ad networks in their digital media plan mix and are allocating more budget to ad networks as they provide higher audience reach in the relevant environment and give better ROI (return on investment) with media/creative optimisation technology,” Tan says.
Ad networks provide access to hundreds of websites through a single technology platform, making it easy for advertisers to reach their target audience across the Web in environments that are relevant to their brand.
Established in Thailand in 2006, Admax Network is the leading online advertising network in South-East Asia with offices in Thailand, Malaysia, Singapore, Indonesia, the Philippines and Vietnam.
“Our South-East Asia’s network combines over 1,200 of the top local and international websites, serving 2.1 billion impression monthly with capability to reach out 65.4 million people, making it easy for advertisers to reach their target audience online, and helping publishers to maximise their revenue through a range of display advertising products,” he said.
As a pioneer in the ad network industry in Malaysia, Admax Network rakes in the highest percentage of ad network spending in the country with more than 100 campaigns completed in its first year of operations, according to Tan.
Among the top campaigns that ran on Admax Network are those by Malaysia Airlines, Nestle, DiGi, U Mobile, Nokia, Honda, Prudential, Singapore Tourism Board, Apple, Microsoft, Samsung, Dell and Accor Group of Hotels.
Malaysia has 15.9 million Internet users in 2008, which represented a huge potential for the Internet-based advertising market to explore, Tan says.
Based on Comscore 2009 statistics, average monthly page views per user in Malaysia is over 1,239 pages. The long tail is growing and this has definitely made online media planning more difficult, as you do not know what sites your target audience will visit.
“Thus a good online media plan should not only focus on top portals or media property; it should focus on the campaign’s target audience. Ad networks provide audience based on demographic and content of interest. This is why, when buying an ad network, choosing sites on the channel is not relevant. You should only choose the channel that meets the campaign’s objective. Admax Network provides 14 content channels for advertisers to choose from,” he says.
Examples are auto, business, community, education, gaming and news & information channels. In Malaysia, it also has Chinese and Malay channels.
On tips for a successful online media plan, Tan says one should look beyond “the usual suspects”. “Diversify your reach, focus on the environment that engages your audience and set success metrics accordingly,” he says.
Meanwhile, Ruumz, which is said to be the country’s first full fledged online social network, was launched on Jan 15 and already boasts 20,000 members.
Ruumz is owned by ruumzNation Sdn Bhd, which is a member of the Green Packet Bhd group and a subsidiary of Packet One Malaysia Sdn Bhd.
RummzNation chief executive James Chong says consumers are using the Internet to communicate in ways like never before.
“Because of the Internet, I am able to communicate with the people I went to school with in Standard 6. Even an email would not necessarily make it easy to keep in touch the way a social network site does,” he says.
The development of the Internet has progressed to where social networking is an embedded part of it, he says. He explains that the concept behind Ruumz came about to reflect a “personal space” online akin to a room where one’s favourite things are.
“If I have a personal space online, I would like it to be reminiscent of my room. It’s where all my favourite things are, it’s where I am most comfortable,” he says.
Chong says while Facebook was established on the premise of getting as many people to join and getting advertisers to advertise, Ruumz looked at other revenue models besides advertising, such as revenue from content and services provided on the site.
“We realised that we can’t survive on advertising revenue only,” he says, adding that the company plans to differentiate itself from Facebook by localising its services.
“We are not here to replace Facebook. Facebook is so much a part of our lives. We can’t compete with Facebook,” he says.
He says Ruumz is already offering online photo printing services whereby photos are delivered directly to the user’s home.
Ruumz also offers legal music downloads in musicruum. In the future, Ruumz will also go beyond offering virtual items such as gifts.
“Ruumz will enable e-commerce on the site where ruumzsters can buy and sell real items,” he says.

http://biz.thestar.com.my/news/story.asp?file=/2009/9/19/business/4715493&sec=business