IT@TT - Online

This relatively new, but thriving startup provides Net advertising and marketing solutions. Amrita Ghosh, IT@TT, quizzed Vinod Nambiar, CEO, Webshastra about the venture.

IT@TT: Could you give us some background about the reasons behind and circumstances that led to Webshastra?

VN: We've been involved in online advertising services since late 1996. It was at that time that we realized the need for a whole lot of services that would make Internet advertising better and more efficient. Namely, ad serving tools (technology), online advertising skills in terms of strategy and creative. The market at that time was too small. Hence we waited for the right opportunity. This led to the setting up of Webshastra in 2000.

IT@TT: How did you hit upon Webshastra?

VN: Well, like all startups, we spent a lot of time thinking about the name. We wanted it to represent science. We believe the Internet will make advertising more of a science than the art it is now. I think it was Kiran, one of the co-founders who came up with the name.

IT@TT: What services do you provide that authenticate your claim to create the Shastra of the Web?

VN: Use of technology. We use DoubleClick technology to provide global level services here to Indian advertisers and sites. Impression based Ad serving, where you pay for impressions achieved. Targeting is geographic, time based, keyword based etc. We do our audits with AC Nielsen, to provide value to advertisers.

IT@TT: Could you tell us a little about your Adshastra and Siteshastra services?

VN: Adshastra is our services for the advertisers. Advertisers can choose from Space buys where they buy ad space on the Webshastra network, across over 50 sites This is target-based on different criteria. There's online monitoring facility, which is predominantly for agencies who have media planning and buying expertise. Media Planning and buying helps an agency in planning the media-base of the desired target audience. Our strategy team helps them with a media plan and also buys. We also get good competitive rates from our relationships with sites. Complete campaign planning has the Adshastra team doing the entire campaign from concept to delivery. This is a comprehensive service, typically delivered to clients directly.

Siteshastra provides out sourced ad management and Ad sales service to sites. So sites do not have to invest in the ad management technology, or sales force. We do the entire thing based on a commission. This service includes value adds like auditing etc.

IT@TT: What's the team size and where is your site hosted.

VN: We are a total of 43 people spread across 3 locations: Mumbai, Delhi and Bangalore. Currently [our servers] are hosted in the US, but we plan on moving them to India soon.

IT@TT: Are you planning to expand your network in Eastern India?

VN: That's a business decision. We've been to Calcutta a couple of times. We may set up an office based on the market attractiveness.

IT@TT: What's your source of funding and how do you generate revenue?

VN: We had our early stage investment from Warburg Pincus, one of the worlds leading private equity funds. Which was 1 million US dollars. Our revenues come from Adshastra and Siteshastra. We have some alliances and the revenue sharing is different in each case.

IT@TT: What's your mission statement and to what extent do you feel you have achieved your goal, since your inception?

VN: Our mission was to provide the best tools to enable Internet advertising in India. We have done that and continue to invest in our cutting edge services.

IT@TT: A lot of people in the market are doing similar things in the area of Internet advertising and marketing. So what distinguishes you and gives you an edge over your competitors?

VN: It's not one element that creates a differentiation. It's a mix of Technology and Online advertising skills. And our team implements both these aspects with more than satisfactory levels of service.

IT@TT: What according to you is the prevailing market scenario and future scope for Internet Advertising in India? Is the trend really catching on?

VN: A lot of companies are adopting the Internet in their marketing plans. This is good news for us. We expect this year a total spend of about 45 crores, which is up from the 12 crores last year.

IT@TT: Do you get time to surf the Net? If yes, could you share with our readers some of your favorite websites?

VN: I mainly do it to update myself on what's happening. Some of my favourites are www.redherring.com, www.clickz.com, www.explocity.com, for Bangalore news, www.hotmail.com, and also www.rediff.com and www.Indiatimes.com for news and lastly, www.yahoo.com for finance news.

Interviewed By Amrita Ghosh
[email protected]

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