Standard measurement system needed for growth of Internet advertising

As the Internet industry is growing, standard norms and measurement system is needed for its expansion. This will contribute to the increment of revenue.

Ernst & Youg India head media and entertainment head Farokh Balsara said that in the US, net advertising has grown by 30 per cent year-on-year after Internet Advertising Bureau (IAB) introduced standards for measurement of the Internet including for rich media, banners and search. He was speaking at the opening session of the Internet and Mobile Association of India (IAMAI) fourth National Conference on Digital Marketing net advertising.

Smile Interactive Technologies Group MD and CEO Harish Bahl notes that a system has to be put in place even if it is not perfect.

“We can learn as time goes on. At the same time standards cannot overtly favour publishers. In absence of standards and norms clients have a case in not paying up. Ad server reports act as a disconnect. There is a client report, a publisher report and the agency report where there is 20-50 per cent variance. Which one do I use? There should be a list of ad server technologies and it should agreed as to which reports are to be adhered to before a campaign starts," stressed Bahl.

The problem is that was discussed was there are no standards in banner formats. One gets B Grade creatives, which in turn affect return-of-investments (ROI).

People Group chairman and MD Anupam Mittal notes that there is no measurement system like what television has with Tam. In fact after Ram was introduced radio stations increased rates by around 20 per cent as that medium gained credibility. The same needs to happen for the net. The absence of standards and norms also means that there are no credit recovery systems in place.

In the mobile value added services space revenue sharing is loaded in favour of the major telecom companies. This also needs to be addressed particularly with 3G expected to come in a few months time.


At the same time Bahl points out that publishers should follow a systematic billing process. All invoices should come in supported by documents. Only then will clients pay. He also says that integrity is often compromised by publishers.

“At least once a quarter I have faced this problem. The sales manager of a publisher who has been given stiff targets to meet overstates what he can deliver. When this does not happen the publisher loses face and tries to cover up and the agency loses faith. Publishers should also realise that agencies are not middlemen. They are their extension. After all agencies make money only when publishers do so,” Bahl said.

The standards and norms should include a list of approved advertisers. There should also be norms that agencies would have to follow while executing a campaign.

Euro RSCG 4D chairman George Gallate expressed disappointment that as of now the online industry has not been regulated.

Standards he says optimise what the net can do. Advertisers have to show ROI, which is possible if a robust measurement system is in place. At the moment valuations being asked for are absurd. “Fair market pricing is needed. If there is undercutting the industry will suffer and not be vibrant. Standards will ensure a fair value for all players involved. Standards are all the more important since social media is changing the dynamics of the landscape quickly, " he added.

Source : Indiantelevision