wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

Q1-10 Call: Rediff.com Expects Single Digit Revenue Hit On Account Of Redesign

During the Rediff.com earnings conference call, CEO Ajit Balakrishnan said that the sequential quarterly growth has largely been driven by a growth in India Online revenues, though revenues from US operations have marginally declined. Rediff.com claims registered user base of 80.4 million at the end of the quarter, representing a 15% growth year on year. Cash and cash equivalents stood at approximately 46.8 million at the quarters end. Gross Margins for the company were 71%, down from 80 % last year.

India Online Advertising Trends

Performance driven advertising remained flat on a quarter on quarter basis, but Display advertising did well for the company: Banking and Financial and the Insurance segment remained top advertiser segments for Rediff, followed by IT Products, PC makers Dell and HP.

Balakrishnan said that though the environment has been challenging for their advertisers, the company has not seen any change in overall eCPM pricing rate. Advertising from credit card, home loans, personal loans and online brokerage continues to be subdued, and it’s too early to say when advertising will recover.

Revenue from top 10 advertiser comprises of 34% of Indian advertising revenue, as compared to 45% for the same quarter last year.

We spoke to Balakrishnan about the financial implications of the redesign, whether they are planning to change advertising rates, and sought usage trends given that the company had previously redesigned their India Abroad website:

Advertisement. Scroll to continue reading.

What is the contribution of the Rediff.com homepage to revenues: how much of a revenue hit we can expect with no ads on the homepage?

We cannot spell out the contribution of the homepage, for competitive reasons. But we have experimented with our international site for about 3 months. Based on that, it will be a high single digit percentage reduction at best. It’s hard to predict, but our experience  in the US has been around that much.

Are you planning to change advertising rates, in order to help revenues to recover?

All media companies would dearly love to increase the rates as soon as possible, but I think…it’s hard to tell, but we do offer in our new layout, excellent sizes and positions. Our advertisers like it because people are spending more time on individual article pages, and more time spent should result in greater value for our advertisers, particularly display advertisers who are looking to establish a brand message. Whether it will translate to higher prices depends on not just our own merit, but also on what the competitive action is going to be in retaliation to that. We believe that right now, our current advertising positions and the way they are placed, and the size of ads we have, offer much much value to advertisers than before.

We’ve come across a significant number of middle and senior management moves from Rediff in the last 12 months, including VP Marketing Preeti Desai and SVP (Interactive Services) Uday Sodhi. Who’s come on board to bridge that gap?

All these individuals and more who have moved are characterised by the fact that they are well trained here, and they would have great value outside. We’ve not made any major replacement for any of those. We’re fine. So far as the structure is concerned, the key team has been around here for 10 years.

Any stats or numbers for the India Abroad site? The new site offers limited access to content…

Advertisement. Scroll to continue reading.

Our experience has been that content is one part of the game – Internet companies dont live on content. Content is important, but it accounts for 20-30 percent of what we do. What is more important is what you do about content – most content is commodity. By making social actions possible around content, the new site – probably better than almost anybody else in the world – there are more social features and actions around content. Normally, PTI and Reuters accounts for 80 percent of content. What do you do with it? You can have message boards, save the content, look to see who else has saved the same content, giving you access to more content through the people network. Our message boards are infinitely more active than NYT, LA Times etc. We can’t put a number on the increase in usage on the International site, because Comscore numbers aren’t out on it yet.

(Updates: corrected user base from 18.4 million to 80.4 million. Thanks Rajesh)

Related:

— Q1-10: Rediff Reports Q1 Net Loss Of $1.43M; 7 Pc Sequential Growth In Revenues
— Our Take On Rediff’s Big Minimalist Gamble
– Updated: The New Rediffmail: Minimalist & Mobile; Text Ads
– Q409 Call: Rediff Buys 26% In Examville, Writes Off Vakow; Debit Card Commerce; REST APIs
– Q4-09: Rediff.com QoQ Loss Triples To $8.86 M Due To Writeoff

Advertisement. Scroll to continue reading.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Find out how people’s health data is understood to have value and who can benefit from that value.

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ