MAM
Rich Media online ads growing in popularity
NEW YORK: DoubleClick has announced results of its Q1 2003 Ad Serving Trend Report based on more than 136 billion ads from thousands of clients.
The data reveals that rich media continues to increase in usage, with 28 per cent of all ads served being rich media formats, compared to 17.3 per cent in last years first quarter. On average, rich media continues to increase by 10 per cent per quarter, and could encompass nearly 40 per cent of all ads served by the end of the year. Rich media includes dynamic ads that fly across web pages, pop-ups, and any ad that includes Macromedia Flash creative technology.
Rich media impacts conversion rates: Rich media, often used for branding objectives by entertainment, automotive and packaged goods advertisers, has proven to generate higher rates of post impression activity per impression (0.78 per cent vs. .41 per cent for non-rich media). This shows that consumers are likely to take some kind of action after viewing an ad. For advertisers using direct response metrics (click-throughs), rich media click-through rates have declined slightly to 2.14 per cent from Q4 2002 levels of 2.44 per cent. This could be due to advertisers using rich media creative for branding and thus not eliciting clicks from the consumer.
However, overall click-through rates have remained stable since the beginning of 2002, currently averaging .7 per cent. View-throughs, which assess some action observed within 30 days of a consumer viewing an ad, have continued to
rise, and are now averaging .61 per cent for ads served by advertisers. While click-throughs assess immediate response, view-throughs reflect the latent impact of an online ad. This metric has become an important factor in accessing the overall effectiveness of an adverting campaign.
Primetime on the Internet is work time: Online, primetime is work time with impression volume peaking from noon to mid-afternoon EST and then gradually declining throughout the day to a low point at midnight. Click-rate volume also peaks during this time. Publishers continue to take advantage of content targeting. This tactic has grown from 42 per cent of all ads served by publishers last quarter, to nearly 50 per cent in the first quarter. By tagging specific content areas of their site and selling that inventory to relevant advertisers, publishers have been able to increase the value of their inventory and the effectiveness of it for advertisers.
While day-parting or planning advertising using specific times of day to reach implied audiences- has been discussed as a potentially effective technique for online advertising, in reality it is rarely used. Less than three per cent of all ads served by DoubleClick use this targeting parameter.’
Increasing standardisation of sizes: (the :60 spot, the :30 and the :15), online has a nearly infinite creative palette, which has made the medium particularly complex for advertisers. But as the industry matures, patterns of standardisation are emerging. For the first quarter since DoubleClick began releasing these statistics, the number of ad sizes used declined — from 11,500 to 10,529, an 8 per cent decrease. In addition, on an average, 70 per cent of all sizes are Internet Advertising Bureau standard.
The standard banner (468 x 60 pixels) is still nearly half of all ads served (46.7 per cent), while the 120 x 600 skyscraper is the next most popular size, accounting for 6.9 per cent of all ads served. Skyscrapers (120 x 600 pixels and 160 x 600 pixels) and large rectangles (336 x 280 pixels and 300 x 250 pixels) are the fastest growing units in the system: skyscrapers have nearly doubled since Q1 2002, now accounting for 8.4 per cent of all ads served.
VP and GM Online advertising solutions DoubleClick Doug Knopper said, ” It is encouraging to see that marketers are not just relying on click-through rates, but are also assessing all kinds of post-impression responses to optimise campaigns and gain a more complete picture of conversions.”
Brands
Flipkart completes reverse flip to India ahead of IPO
Walmart-owned e-commerce giant shifts domicile from Singapore to Bengaluru
MUMBAI: Flipkart has completed its restructuring to move its parent company from Singapore back to India, marking a key milestone as the Walmart-owned marketplace prepares for a potential initial public offering on Indian stock exchanges, ET reported, citing people aware of the matter.
The move, often referred to as a “reverse flip”, relocates the company’s legal home to India and aligns its corporate structure more closely with its largest market. It also clears an important regulatory step for Flipkart as it explores listing plans.
As part of the restructuring, several Singapore-based entities have been merged into Flipkart Internet Private Limited, which will now serve as the main holding company for the entire group.
The consolidation brings a number of major businesses directly under the Indian parent company. These include fashion platform Myntra, logistics arm Ekart, travel booking platform Cleartrip, healthcare marketplace Flipkart Health, and fintech venture Super.money.
Under the new structure, global investors including Walmart, Microsoft, SoftBank, and the Canada Pension Plan Investment Board will hold their stakes directly in the Indian entity rather than through an overseas holding company.
The redomiciliation required approval from the Indian government because Chinese technology company Tencent owns around a 5 to 6 per cent stake in Flipkart. Under Press Note 3, investments from countries sharing a land border with India require prior government clearance.
Flipkart had already secured approval from the National Company Law Tribunal in December. With the latest clearance from the central government, the company has now obtained all the regulatory approvals needed to complete the relocation, ET reported earlier.
Flipkart had originally shifted its holding structure to Singapore in 2011 to tap global capital more easily. However, as India’s capital markets have matured, several start-ups have begun returning their domiciles to the country ahead of public listings. Companies such as Razorpay, Groww, and Meesho have taken similar steps.
The company is now expected to move ahead with its IPO preparations and has begun early discussions with merchant bankers. According to people familiar with the matter, Flipkart could file its draft prospectus later this year, setting the stage for what may become one of the most closely watched listings in India’s e-commerce sector.
Flipkart has been majority-owned by Walmart since 2018, when the US retail giant acquired a 77 per cent stake in the company for $16 billion in one of the largest e-commerce deals globally.
