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VCs scout for mobile advertising companies to invest
By siliconindia
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3 Comments
Hyderabad: The booming mobile market of India is luring venture capital firms. The investment firms are scouting for opportunities to grab a share in the mobile advertising companies. This 
40-crore market in India is expected to reach 500 crore by 2012 and even more as digital marketing companies gear up to plunge into this arena too.
The growing number of subscribers in the field which stands around 250 million and, with the operators adding 9-10 million of subscribers every month, this sector has become the perfect investment scene. Assessing the tremendous prospects in the field, Suresh Reddy, Chairman of Ybrant Digital says, "Advertisers, after targeting TV and personal computers, are now gearing up to reach out to their target audience on the third screen - mobile - as it brings together internet, video, text, gaming, music and more. The key lies in publishers creating 'media on mobile' based on SMS and permission from the subscribers. We believe the biggest digital marketing in India and China is in mobile marketing."
"Mobile advertising companies today operate as mobile versions of advertising agencies. This trend will continue until the introduction of relevant mobile applications that drive huge traffic and stickiness. Once the market has killer mobile applications, mobile advertising network will truly be able to provide an optimised service to their end clients. There is an opportunity for this for sure," says Gautam Patel, a partner with U.S.-based Battery Ventures, which has three billion dollar capital under management in eight funds. As reported by Business Standard, a VC firm named Clearstone is also on a lookout for investment opportunities up to $10 million and is already in talks with companies.
The firms also see profits in investing marketing via mobile mainly through SMS, since direct marketing in India consists of only 10 percent of the total marketing spend, while for U.S. it is 50 percent. "If you compare direct marketing data in more developed markets and India, it shows the market is hugely underserved in direct marketing. However, permission or context-based direct marketing will effectively monetise this opportunity. We are actively looking at direct marketing businesses that are using the mobile channels and are planning to make a couple of investments in this space in the next one year," Patel adds. Battery Ventures' investments typically range from $5,00,000 to $50 million.
40-crore market in India is expected to reach 500 crore by 2012 and even more as digital marketing companies gear up to plunge into this arena too.
The growing number of subscribers in the field which stands around 250 million and, with the operators adding 9-10 million of subscribers every month, this sector has become the perfect investment scene. Assessing the tremendous prospects in the field, Suresh Reddy, Chairman of Ybrant Digital says, "Advertisers, after targeting TV and personal computers, are now gearing up to reach out to their target audience on the third screen - mobile - as it brings together internet, video, text, gaming, music and more. The key lies in publishers creating 'media on mobile' based on SMS and permission from the subscribers. We believe the biggest digital marketing in India and China is in mobile marketing."
"Mobile advertising companies today operate as mobile versions of advertising agencies. This trend will continue until the introduction of relevant mobile applications that drive huge traffic and stickiness. Once the market has killer mobile applications, mobile advertising network will truly be able to provide an optimised service to their end clients. There is an opportunity for this for sure," says Gautam Patel, a partner with U.S.-based Battery Ventures, which has three billion dollar capital under management in eight funds. As reported by Business Standard, a VC firm named Clearstone is also on a lookout for investment opportunities up to $10 million and is already in talks with companies.
The firms also see profits in investing marketing via mobile mainly through SMS, since direct marketing in India consists of only 10 percent of the total marketing spend, while for U.S. it is 50 percent. "If you compare direct marketing data in more developed markets and India, it shows the market is hugely underserved in direct marketing. However, permission or context-based direct marketing will effectively monetise this opportunity. We are actively looking at direct marketing businesses that are using the mobile channels and are planning to make a couple of investments in this space in the next one year," Patel adds. Battery Ventures' investments typically range from $5,00,000 to $50 million.
