Update: We’re been informed that Nokia getting the Airtel account isn’t news either – Enpocket used to power the Airtel WAP portal ad-platform, and Nokia got that account via the Enpocket acquisition. The deal apparently expired earlier this year, and others were bidding for the account.
An industry source gives an example of the calculations on basis of which Nokia might have calculated the guarantee:
There are essentially three variables that will drive the size of the guarantee:
- Projected inventory volume: Assume that Airtel does roughly 50-60 million page views per month on Live!
- Projected fill rate: Assume a fill rate of somewhere between 50% and 70%
- Blended CPM: Assume that Airtel sells much of its inventory at between Rs 100 to Rs 120 CPM.
So, the calculation: 50m – 60m PVs x 50% – 70% fill x Rs 100 blended CPM = 36 – 40 lakhs/month
Note: Please keep in mind that is an example, only for your reference :)
Original story: Well, AdMob, MKhoj and MobileWorx are in for some serious competition in India: we’d heard about companies bidding for managing advertising on Airtels WAP portal “Airtel Live”, and according to Reuters, Nokia has won that account. Nokia had acquired Enpocket earlier last year. Its website now redirects to Nokia Interactive Advertising. This is another instance of the handset manufacture flexing its muscle and expanding up the value chain.
Also makes me wonder if some part of Nokia’s Ovi business (content) is going to be ad supported. They’re tying up with content partners in India, and it might just end up a dud like Nokia Downloads, if usage isn’t driven with either free samples, or ad supported content. More on this later