NDTV Convergence has outsourced its mobile ad sales to Affle, after outsourcing the mobile portal development and management to July Systems. Affle is a mobile applications company, with investments from the Times of India Group.
So the Mobile Advertising revenue share around NDTV Active is now split 3 ways – with NDTV Convergence, July Systems and Affle each getting a share. One should also look at this development in a slightly different context: a little over a year ago, NDTV Convergence had brought online ad sales in-house, from sister company NDTV Media. So why then have they outsourced mobile ad sales? And how does bringing Affle into the picture affect NDTVs relationship with July Systems?
Sanjay Trehan, CEO of NDTV Convergence told MediaNama “July is our technology partner. They power the back-end, and will incorporate the new products and channels that we will launch in the future. The Affle deal comes with a minimum guarantee to us. NDTV Convergence does syndication, events and online ad sales. Mobile is a specialized cell, so we have decided to get out of advertising on the mobile space, and tie up with Affle for 2 years. They’re a large aggregator of mobile ads. Our revenue sharing relationship will continue with July.”
Also worth noting is the fact that this is a form of diversification for Affle – they were primarily a mobile applications company, well known for their application SMS 2.0, which is available to Airtel customers. The application is advertising supported, so they do have a mobile ad sales team. Now they’ve expandated their mandate to include ad sales for other companies as well.
Interestingly, at a discussion organized by MediaNama last year, both NDTV Convergence and Affle had claimed that they’re not taking CPL deals. NDTV Active claims to have 3.8 million pageviews on the mobile, while Affle claims to have delivered over 100 campaigns, and a “125Mn monthly mobile media inventory”.
— NDTV Convergence Ties Up With TutorVista; Our Take On Their Strategy
— NDTV Q2-09 Revenues At Rs. 128 Crores; NDTV Convergence FY08 Loss At Rs. 5.5 Crores
— SMS 2.0 Integrates Search From Google, MSN, AskLaila And Others; The Opportunity For Affle
— @MoMo Delhi: Video Ads On Mobile; Need For Mobile Ad Standards; Do-Call Registry; Personalization
— @MoMo Delhi: Airtel WAP Banner @ Rs. 5 Lakh/Day; Affle & NDTV Active Not Taking CPL