wordpress blog stats
Connect with us

Hi, what are you looking for?

VDOPIA Raises $4M From Nexus Venture Partners; Indian Video Ad Trends

logo-vdopiaFollowing a seed round of funding from Nexus Venture Partners (formerly Nexus India Capital) last year, video advertising network VDOPIA has raised a Series A round of $4 million from the same fund. According to a filing with the American Securities & Exchange Commission, which was first reported by VentureBeat last week, the total amount was $$4,714,302. Speaking to MediaNama, Saurabh Bhatia, co-Founder and CBO at VDOPIA, clarified that the current Series A round is $4 million, and the rest is from a convertible seed note, which was a part of the seed round of funding. VDOPIA has appointed Rohit Sharma, a Silicon Valley entrepreneur, and former EVP and CTO of ONI Systems as President & CEO.

Why Does VDOPIA Need The Money?

Bhatia says that VDOPIA is raising the money primarily to fuel its expansion into the US Market, for its iPhone video advertising network iVDOPIA: “There’s a need to expand to sales & marketing (for iVDOPIA) in the US, R&D in India, expand sales and oeprations in India, and exploring new markets. We’re eying the Latin American market.” He declined to comment on how much of the funding is being allocated to a US expansion, saying that that is going to be looked at quarter on quarter, depending on market requirements.

Indian Market Trends

VDOPIA Growth: According to Bhatia, among their publisher network is the entire NDTV group, TEN Sports, NEO Sports with Cricket Nirvana for the India-Australia series, Zee News and Web18. We’re the only ones who have livestreaming. Metacafe in India. ZEE News, Web18. On Web18, exclusivity isn’t in the picture. VDOPIA claims 60% marketshare, in terms of publisher reach, for pre-roll advertising , given that YouTube, the largest video serving platform in the country, isn’t serving pre-rolls yet. Bhatia claims that over the past three quarters, VDOPIA has seen 70-100% growth each quarter. Now that kind of percentage growth is usually seen on a very small base. Bhatia clarified that that was the situation last year, but the company saw growth in revenues in the Jan-Feb-March quarter, which he claims was the tipping point for revenues for VDOPIA in India. In June, the company added Metacafe as a publisher, which he says has an India inventory of 20-25 million views per month.

Growth Drivers: Bhatia says there has been month on month growth for on-demand viewership of content, like for the NDTV group, and publishers are putting up new content on demand regularly. He expects the growth in inventory to continue.

The other key driver for growth has been event based online live-streaming: the company claims they got a huge boost during the Compaq Cup with TenSports & NBC Universal, with brands like Airtel, Xerox, Nokia and Samsung as sponsors. VDOPIA claims that the Compaq Cup saw 1 million unique streams across matches, and average viewership 59 minutes, hence a total of 10 million hours. “Even media companies are looking at these complementing their media revenues. and We’ve added livestreaming ad insertions, talk to me ads, and also expanded our publisher network.

Advertisement. Scroll to continue reading.

Revenue Models: On whether we will a deterioration of the model (at least from a publishers perspective) to CPC in video advertising, Bhatia said that CPC deals don’t make much sense. “We’re running the ads on brand sales content, and it’s comparable to TV. A few clients who have come back to us for TV type deals, for reach. Ours is a CPM or a CPV (cost per view, when ads are viewed till completion), and with live streaming it’s Cost Per Spot.

Responding to our question about whether we’ll see the end of exclusive deals, and whether VDOPIA offers any minimum guarantees for exclusive deals, Bhatia said that with exclusivity, they provide certain addons like dynamic skin branding which increases yield per video. They don’t pay a minimum guarantee to clients, but exclusivity allows deeper technology integration. Bhatia believes that the future belongs to exclusive deals since, unlike banner advertising, video content has these opportunities involved at a tech and brand positioning level.

Related:

— NBCU Ties Up With Ten Sports For Cricket Streaming; Vdopia Ad Sales Partner; Challenge
Video Ad Network VDOPIA Raises Funding From Nexus India Capital
Updated: VDOPIA To Power Video Advertising For Tubaah And NDTVProfit.com

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

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

News

This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.

News

It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...

News

Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

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