Here are the highlights of the Rediff conference call (transcripts here) with analysts on the Q3 financial results:
Performance-based advertising zooming: The performance-based advertising is what driving the advertising growth for Rediff. Chairman and CEO Ajit Balakrishnan said that pay-per-click model accounted for 45 per cent of online ad revenue, up from 31 per cent for the same quarter last year. Rediff’s Indian online ad revenues grew 80 per cent to $5.69 million, and about half of it’s performance-based. “…I think performance based advertising is really the runaway success…,” says Balakrishnan.
So what is happening to CPM-based advertising? It’s flattish as far as the rates are concerned. But the volumes are growing.
Classified gaining traction: The listings on classified advertising have crossed the half million mark during the quarter ended December 31, 2006. It’s a 150 per cent growth over the sequential quarter September 30, 2006.
Market share between 25-35 per cent: Balakrishnan claims that Rediff has a “probably a figure between and 25% and 35% of the market”. That means the Indian online advertising market could be valued anywhere between $70 million and $90 million.
Rubbishes Sell-out rumours: Says CFO Joy Basu, “Now, there is absolutely no interest, absolutely no interest (in selling out)…there are absolutely no truths to that speculation.”
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