DGM Launches India Operations; Targets Break-even By Q1 2008

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AIM Listed dgm Holdings Plc yesterday announced their entry into the Indian market. Dgm India, a wholly owned subsidiary of dgm Holding company Deal Group, will provide internet advertising and marketing services including search, affiliate and email marketing. During the launch presscon, Adrian Moss, CEO of DGM Holdings said that the opportunity in Indian internet marketing lies in the disconnect between advertisers and consumers – largely because of insufficient analytics, and the complexity due to multiple channels and pricing models.

Talking about the current market scenario, dmg India MD Anurag Gupta said that many clients are looking at costs-per-acquisition – they want a resume acquired at Rs. 75, Air Ticket sold at Rs. 100, Home Loan sold at Rs. 150 etc. He feels that this need can be met with affiliate marketing. Currently most advertisers directly deal with publishers, and around 50 percent of banner inventory online in India remains unsold. He expects affiliate payouts in India to be 10 percent of online advertising over the next 18-24 months.

DGM India enrolled their first client on April 26th, and their roster includes yatra, naukri,sify, phoolwala, sirindia, ibibo, among others. Gupta concedes that most are currently looking to try out affiliate marketing, which he expects to account for 5-10 percent of initial business. Dgm India expects to sign up 2500-3000 publishers in the next few months. While Moss would not quantify their investment or budget, he expects dgm India to break even by Q1 of 2008. The company currently has 12 employees and is headquartered in Gurgaon. They will be opening a Mumbai office this month, and in Bangalore by Q4.

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