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Mobile Advertising Company mginger Funded By NEA IndoUS Ventures

You’re reading this here first: Contentsutra has learned from reliable sources that Gingersoft Media, the company which runs a permission based mobile advertisement service mginger, has received an undisclosed amount of funding from NEA IndoUS Ventures. We contacted mginger CEO Chaitanya Nallan (after several attempts), but he refused to confirm or deny the news. He also refused to divulge whether other VC funds apart from NEA IndoUS are involved in the funding. As per industry sources, NEA has invested around $2 million in mginger, at a valuation of around $5 million. Other sources concur, saying that NEA was looking at a deal size of around $2-3 million.

Many, including me, have doubted the mginger model of paying users (details here) to receive advertisements by SMS – would advertisers find value in paying users to receive SMS’? How can they be sure that the messages are read? The institution of the Do-Not-Call registry in India, for which around 6.5 million mobile users have signed up already, has opened up an opportunity for permission based mobile advertising companies. Many have told me over the past couple of weeks that the model is now gathering steam and advertisers are signing up. Others in this domain include mgarlic.com, admad.mobi, m-earn.com, 160by2.com, among others. There are three different types of permission based advertising models – the first, like mginger, pays users to accept advertisements; the second, like 160by2, allows users to send SMS’ for free, with a part of the text message used for adverts, while the third, like MyToday follows the publishing/newsletter model wherein users request content or alerts, and ads are sent along with the message.

13 Responses to “Mobile Advertising Company mginger Funded By NEA IndoUS Ventures”

  1. Hi,
    i have found most genuine & honest site that pays you to read ads on your
    cellphone! These ads are only about your interests.Not only that, you get
    to decide when you want these ads. They inform you about the best deals and
    discounts in the city and also pay you for each incoming SMS.those love
    xtra earning visit this site

    http://mginger.com/index.jsp?inviteId=3310866

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  2. Hello Friends,

    Here is another company offering SMS advertising to its valued customers.

    http://www.SMSadvertising.in

    Key is they are attracting subscribers with following message, I received from one of my friends. I have signed up! Makes sense to me as I receive so many SPAM sms anay way, so why not get paid for those. Also I can control how many SMS i want to receive, so I am in control.

    Anjali
    ++++++++++++++++++++++++++++++
    Hello Friends !

    This is a MUST see!

    Check out http://www.SMSadvertising.in

    WHAT YOU GET :
    1. Earn money by receiving SMS on your mobile phone.
    2. Receive Free movie tickets/offers
    3. Receive discount coupons for merchandise, mobile phones etc on your mobile.
    4. Become part of a social cause

    NO DISTRACTION:
    You can LIMIT how many SMS you want to receive in a DAY

    INVITE OTHERS:
    Send invitations to your friends/family and earn on the SMS they receive. With 10 friends you refer, you can earn upto 10000/month.

    DISCLAIMER:
    This is NO get rich overnight scheme.

  3. Hey thats one comprehensive article. Quoting the concluding statement of Richa Vij the author, "…But the fact of the matter is that not only is there an absence of a clear winner, solid business models are even harder to come by."

    Is it that complicated to come up with a good business model? Has any of the 'M' companies tried to tell us "join us because we get you the best offers"???? It would be a good combination of Pull-n-Push marketing.

    Why make your model convoluted when it can be simple and effective?

    Or may be iam wired wrongly :) One of the core values of my company states "Common sense precedes creativity"

  4. @ Edge, it makes perfect business sense that way… i agree. But the value proposition as conveyed to us (subscribers) by mginger and similar companies is NOT "useful/helpful/relevant/desired/timely ads on mobile", but "you get money to receive SMSes".

    Hence my logic that this proposition would attract parasites rather that loyal customers.

    To attract loyal customers, your value proposition should be like 'valuable or useful information channel'. As a subscriber of mginger, I see the value in money part not information part. Hope it makes sense.

    By the way my favorite mginger look-alike is MGARLIC!! Ha Ha Ha… :)) man its hilarious. You know when this "industry" consolidates we'll get a mobile marketing giant called MCURRY :))

  5. @ shibi : You are doing Chinese Mathematics . just like every person on road is not an possible prospect for Amway similarly everyone with cell phone is not a potential client for companies like mginger.

    now as far as value of advertisement are concerned . well its hard not to glance a SMS before reading it . very few of us will do it . its just 120 Char. and i doubt it will change ..I mean have we stopped picking call from unfamiliar numbers because there are too many telemarketer . same is also true for mginger.

  6. I think Mr. Raghu you had underestimated the potential of this concept which can even end up poverty. To understand the massive potential of this model, do assume that you opted for receiving 20 messages a day & you have 200 frnd and so on then you can even earn Rs. 9842418120.00/-
    If one percent of this calculation is true than i can earn Rs 98424181.20, even more if i earn 1% of this amount i can earn more than any Highly paid CEO. Rs 984241.8120/- and even getting 1% of this amount can help me earn about 1 lahk RS p.m.
    Note for calculation verification visit http://www.admad.mobi & fill option by 200 (Yr phone book)
    Who cares even if i receives Rs 10000 p.m.
    ————————————————–
    let assume that total register members are 107647 & the number keeps adding,
    And every one of them earns Rs 10000
    then, 10000*107647=1,076,470,000
    wow total amount annually received by customers=12,917,640,000
    wow every body is rich……but can somebody, please tell me the size of our advertisement industry…

  7. Applying a little common sense here…

    Money attracts subscribers to sign-up.. so will they be interested in number of SMSes they receive or the actual message of the each SMS?

    Mind it that attention given to actual commercial message is INVERSELY PROPORTIONAL to number of SMSes received.

    i too have signed up on mginger.. asking for as many SMSes as possible because i have calculated that it can pay for my mobile monthly bill. i won't bother to read SMSes.

    Advertizers in this case are throwing money on not the potential customers but smart parasites.