Naavi had been pursuing two
patents with USA applied in April 2001 on tow innovative web utilities namely
Verify for lookalikes and Ad View Certification.
Both patent applications had
passed through international examination for prior art some time back and had
been presented for preliminary examination in USA.
Of these, the approval of
Verify for Look Alikes patent has been received today and the approval for the
second patent is expected shortly. This is considered to be the first patent
succesfully pursued in US by an Indian Innovator for a Web Utility product.
Verify for lookalikes is
already available as a prototype at the site
http://www.verify4lookalikes.com
and is ready for commercial exploitation.
Ad View Certification service
is under development and requires a suitable software company to develop the
software.
A Brief note on the
service is provided below.
Adview Certification:
Ad View Certification is a B2B
service to the online Ad industry. It provides for third party certification
of the exposures of Banner Ads on a site.
It will also have many
innovative value added services. It monitors and regulates the ad views
and provides customization facility for various kinds of reports. The system
also contains an innovative sub-system to reward the netizens who participate
in the certification process by their own confirmations. This reward system
also generates a potential to add B2C services in the form of "Incentive
Points encashable at other sites".
Adview Certification Service
will be provided by a “Ad View Certifier”. This is a new service different
from any of the existing services for ad industry. This will be a trusted
third party other than the Site owner, Ad server and the Ad Buyer.
Adview Certification software
will run on a central server controlled by the service provider. The
service provider/s will have privileged access as customers in a ASP
service. The Website owner , as well as the Ad Server will also have limited
access to the system as required for the configuration of their respective sub
systems. The Ad buyer may opt for self certification in which case he will
substitute himself for the professional Ad Certifier .
The service is unique and will
have several spin-off benefits to the subscribers. It will also have certain
built-in benefits to the Netizen community at large who would participate in
the Certification process to some extent.
A more detailed description of
the service is a subject matter of a separate note.
From the commercial point, it
would be a service which can add value to present Ad Serving Industry and has
the potential to introduce a revolutionary new system of ad management in the
Cyber world.
The software will be made
available on a “Pay for use” basis where Cyber Ad Solutions Ltd will charge a
service fee including the royalty payable to Naavi. The service is expected to
be priced at Rs 250 (approximately US $5) per thousand exposures certified.
At present Ads are sold in India the range of Rs 350 to over Rs 1250 per
thousand exposures (CPM) depending on the targetability of the audience. The
Forrester estimate applicable to USA is that the ads are currently being sold
in the range of US $5 to $45 on CPM basis. Since the Certification of Ads is a
new concept and would provide a much needed confirmation on “Value for Money”
to the advertiser, the price of the service is expected to be absorbed in the
current ad price structure without diminishing the marketability of the ads.
Commercial Prospects:
According to reliable statistics of recent
origin, the online ad spend is around US $ 3 billion. The year on year growth
is around 40 %.
Online media spending, as a percent of ad
spending across all media, is around 3 %.
Forrester expects web advertising to grow to
nearly $31 billion by 2005. The share of “Main Stream Advertisers” as against
“Early Movers” would grow from 31 % at present to around 84 %.
The ad market would therefore be large and
stable in the coming years. It would also be dominated by advertisers who
would demand reliable ad delivery statistics. The Ad View Certification
Service would therefore be of greater relevance with such advertisers.
The average cost of ads on CPM basis today is
around US $ 35. The cost of the service at US $5 is therefore around 15 % of
the average ad cost.
Based on this estimate the market for AD View
Certification is around 15 % of the online ad market in any region. If
therefore the online ad industry is worth US $ 35 billion by 2005, the global
market for the subject service is in the range of US $ 5 billion. (Rs 20,000
crores). Even in a country like India where online ad industry is expected to
be worth only around Rs 1000 crores by 2005, the market for the subject
service in India would be more than Rs 100 crores.
Naavi
July 29, 2002
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