Rediff's Pay4clicks vs. Google's Adwords
Rediff has a Pay4clicks campaign similar to Google's Adwords. What are these?
Google Adwords is the BIG money maker for Google. Every time you do a search on Google, you see these ads on the column on the right hand side? That is Adwords. The ads are targeting the search query terms, and also where you are (called geo-targeting).
Rediff has pay4clicks. It is nowhere near as sophisticated as Adwords, but it is a good start. Let's say you are looking for an apartment in Bangalore. Then Rediff's pay4clicks has advertisers on relevant Rediff channels advertising for apartment rentals in Bangalore. You like an ad, you click, and Rediff pockets Rs. 15, about $0.30. That is a nice cut.
Rediff needs to invest in making it search more relevant to the user and run Adwords like ads on the right side (right now it is a plain vanilla search-no relevant ads). In the end, Search is the big money maker for both Google and Yahoo. In a vast country like India, search has gotta go local. And this is where Rediff (and Sify) will make big money, if they make the right moves.
Rediff could partner more closely with Yahoo using Yahoo's Search technology AND Ad triggering(called Yahoo Search Marketing)-no need to reinvent the wheel. Remember that Rediff powers the shopping channel for Yahoo India, and Rediff is using Yahoo algorithms (formerly Inktomi) to power its search, so they are already partners, just need to make their relationship better.
Search is not easy business-it needs tremendous investment of manpower and computation to come up with the right results. Even to this day there are holes in Google and Inktomi algorithms, as shown by the recently out "miserable failure" paradox (typing "miserable failure" in the search on Google.com or Yahoo.com gives you the first result as the White House! The algorithms were tricked by the some saavy webmasters to show this, see full story and rebuttal from Google.com here....kinda amusing actually...:-))
If Rediff and Sify do NOT make Search better and trigger relevant ads, essentially through partnering with these big guys more closely, Yahoo India and Google.in will have a grand party in the India market by themselves. Selling a minority stake to Yahoo and/or Google is not a bad idea-that is what will make money for REDF and SIFY shareholders in the long run.
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Sanjay John G.
Google Adwords is the BIG money maker for Google. Every time you do a search on Google, you see these ads on the column on the right hand side? That is Adwords. The ads are targeting the search query terms, and also where you are (called geo-targeting).
Rediff has pay4clicks. It is nowhere near as sophisticated as Adwords, but it is a good start. Let's say you are looking for an apartment in Bangalore. Then Rediff's pay4clicks has advertisers on relevant Rediff channels advertising for apartment rentals in Bangalore. You like an ad, you click, and Rediff pockets Rs. 15, about $0.30. That is a nice cut.
Rediff needs to invest in making it search more relevant to the user and run Adwords like ads on the right side (right now it is a plain vanilla search-no relevant ads). In the end, Search is the big money maker for both Google and Yahoo. In a vast country like India, search has gotta go local. And this is where Rediff (and Sify) will make big money, if they make the right moves.
Rediff could partner more closely with Yahoo using Yahoo's Search technology AND Ad triggering(called Yahoo Search Marketing)-no need to reinvent the wheel. Remember that Rediff powers the shopping channel for Yahoo India, and Rediff is using Yahoo algorithms (formerly Inktomi) to power its search, so they are already partners, just need to make their relationship better.
Search is not easy business-it needs tremendous investment of manpower and computation to come up with the right results. Even to this day there are holes in Google and Inktomi algorithms, as shown by the recently out "miserable failure" paradox (typing "miserable failure" in the search on Google.com or Yahoo.com gives you the first result as the White House! The algorithms were tricked by the some saavy webmasters to show this, see full story and rebuttal from Google.com here....kinda amusing actually...:-))
If Rediff and Sify do NOT make Search better and trigger relevant ads, essentially through partnering with these big guys more closely, Yahoo India and Google.in will have a grand party in the India market by themselves. Selling a minority stake to Yahoo and/or Google is not a bad idea-that is what will make money for REDF and SIFY shareholders in the long run.
Subscribe now to The Wall Street Journal and get up to 8 weeks FREE
The Prudent Speculator -- Ranked #1 by Hulbert for 10, 15 and 20 year performance...Click Here!
If you subscribe to the Wall Street Journal or the Prudent Speculator using the links above, I get a commission. Thanks in advance,
Sanjay John G.
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