wordpress blog stats
Connect with us

Hi, what are you looking for?

eCPM Rates Same Says Rediff CEO; Rediff, Yahoo & Cult Following

eCPM (effective cost per milli impressions) rates have not decreased for NASDAQ listed Rediff.com in the last two quarters, Rediff CEO Ajit Balakrishnan told MediaNama on the companys conference call on Friday. “The real decrease is lower activity; for us it has not been a rate issue. I think the issue is not really about pushing rates up as much as making sure we help advertisers get the results they want.” We had asked Rediff is there is any indication of publishers coming together to increase rates in the market. Perhaps Rediffs eCPM has not been impacted – or so has been claimed – but the sense that we’ve got from discussions with industry executives is that there has been tremendous pressure on rates over the past few quarters, and rates have been beaten down.

Balakrishnan said that key advertisers from jobs, consumer finance, travel and real estate categories continue to face challenges, and lower consumer spending has impacted Rediffs fee based revenues as well. He is, however, “cautiously optimistic”. “Since September,” he said,” things are looking better than in the last 4-5 months. The number one players in Jobs, Finance and Travel are starting to wake up, but the problem has been with number 2, 3 and 4 players, who have not recovered in terms of their spending.”

With a cash balance of $48 million, Rediff can perhaps afford to take a hit from removing advertising from its homepage. Balakrishnan had told MediaNama last quarter that the company expected a “high single digit percentage reduction” in revenues on account of the redesign, but the overall impact on revenues has been much worse: quarter-on-quarter revenue decline in revenues was in double digits at 16%, and of 22% on its India Online revenues. Nevertheless, that cash in the bank allows Rediff to take a step as drastic as removing ads from its homepage, ensure that “ads on the other pages don’t intrude into the user experience on the site” and, just as importantly, reduce the amount of content accessible from the homepage.

Rediff, Yahoo & Cult Following

It’s also interesting to juxtapose Rediff’s initiatives with those of Yahoo: Rediff too plans to continue to invest in product development and brand building, though much smaller amounts at $1-1.5 million over the next few quarters, and focus on making its website increasingly social, giving users access to both content within Rediff and social networking sites via its MyPage, which it claims has had “good traction”. We think social enabling of Rediff & Yahoo products helps increase usage, content discovery and user retention, while the campaigns target both new users and brand managers, knowing that when the market recovers, Rediff & Yahoo will be a key destination for Advertisers.

What is missing is a truly unique product from either company that will give them competitive advantage, strong word-of-mouth…not just a site where you get a little bit of everything. Usability and mobile-readiness as a differentiator aren’t sufficient. Cult following does matter, as Facebook, Twitter and YouTube have proven in the past.

Advertisement. Scroll to continue reading.

Related:
Rediff’s Losses Double, Revenues Down 15.5% QoQ

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