Arun Tadanki, Managing Director, Yahoo!

Advertising Expenditure by Type (2009) Why is Internet Advertising still so small?

Myth #1: Internet Advertising Market is still small because the number of users on Internet is <5% of population

Internet needs to monetize better No. of Users (MM) Ad Revenue (INR Crores)

Myth #2: Advertisers allocate resources based on quantitative logic

A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online. Yet, less than 3% of their budget is invested online! What’s worse, that online budget is primarily to purchase INR 150 per Test Drive form filled up (for a 15Lac car) ! Advertisers haven’t seen basic rationale for advertising online

Myth #3: We can test the waters with Internet Advertising with small budgets

Can we test the effectiveness of Radio medium with 5 lacs? Can we put up 2 billboards in a city and test whether outdoor works or not? Every medium needs a minimum threshold level before an advertiser can evaluate

Myth #4: Effectiveness of Creative Strategy is the responsibility of the advertiser

Publishers & Agencies must invest much higher quality resources to build powerful campaigns online. Advertisers must remunerate agencies in a fair manner to encourage such investments

Myth #5: Advertisers judge the effectiveness of advertising based primarily on data. Internet has an advantage because it is a measurable medium

TV Advertising Works!

Print Advertising Works!

Outdoor Advertising Works!

Does Internet Advertising Work? Can we prove it without any numbers? Can we recall any memorable online campaigns? Is there any consumer brand that is widely recognized as “built by the Internet medium”?

COFFEETING CASE STUDY BRAND BUILDING COMMUNITY STYLE…

Some Facts On Taiwan  The Total Online Audience in Taiwan stands at 10MM users. (45% Internet penetration)  Yahoo! Taiwan reaches 97% of this online audience  Television is Yahoo!’s major competition for age consumers The Need For Coffeeting Major Challenge for online media – Big Brands still needed convincing!  “It’s nice to have an online component in my media mix, but TV or Print is a must”  “Online media is great for promotion campaign but not for branding”

COFFEETING: A WELL-DESIGNED EXPERIMENT  Create a virtual brand  ADVERTISE ONLINE ONLY

THE RESULT: INSTANT INDUSTRY ATTENTION High Attention among target advertisers 2 hours after launch: Many agencies called to ask who the advertiser is. Including Ogilvy& Mather, Zenith Media, Carat Media, Media Pallette, FCB, etc 2 days after launch: All major market players (beverages) called to check if this is a competitors’ movement Significant Media Buzz TV news exposure: the Big idea and how it promoted internet media Chinatimes, Apple Daily: Why no products in market yet?

THE RESULT: BRAND AWARENESS QUANTIFIED via Y! online survey tool With $200K online media spending only (no traditional communication), brand awareness of the new Coffeeting brand increased dramatically: 1wk 2wks 3.5wks 0% 10.6% 20.3% Compared to the top two leading coffee brands in Taiwan, Coffeeting became a strong competitor within just four weeks: Maya: 28%, Dydo: 20.7%

IMPACT – LICENSING OPPORTUNITY!  Top 2 beverage companies have approached Y! to buy the brand  Coffee Ting would become the first and ever brand which is built online virtually prior to rolling out into real products !

Sum Up Internet Medium is large enough today We must demonstrate the ability to build brands online and not just deliver clicks and leads, if the big bucks have to come online

Thank You