App publishers counter undercutting ad networks

08 Apr,2015

By Krithika Krishnamurthy

 

Ad network Adatha was born four months ago when Venkatesh Rajendran, co-founder of online magazine publishing firm Magster, found discrepancies in the manner in which he was being paid for his services.

 

Magster was advertising the mobile apps of Flipkart, Mobikwik and Snapdeal through various ad networks such as China-based Avazu, InMobi and SVG Media.

 

For the same app, Rajendran said, he was getting different payments from different networks. Advertisers pay ad networks to display ads on relevant apps, mobile sites and websites. The websites like Magster get paid for the ads they showcase.

 

“We got paid differently from different ad networks. Why were there variations for the same app?” he asked himself, he said. When he dug deeper, he said he found that despite having got impressions, the ad networks were undercutting him, by showing him the wrong metrics.

 

In this case, Avazu was paying him a slightly higher amount for every ad installed, but it reduced the overall number of installs, he said. So, Rajendran said, the final payments would be much lesser at the end of the day. This prompted him to form an association of about 15 members called Indian Mobile App Publishers’ Network that aims to blacklist and showcase suspicious ad networks to publishers.

 

CashOn, Pokkt and EarnTalk Time are some of the publishers that have come on board. Publishers claim Indian players like InMobi, SVGMedia and VServ are known to play by the rules, but those in China, especially YeahMobi and Avazu don’t necessarily do.

 

Avazu refuted the claim while YeahMobi did not respond to requests for comment till late evening on Tuesday.

 

“That’s not really true. We only cut publisher payments when we find fraudulent traffic or when publishers are not compliant with our advertisers’ policies and we always provide evidence on that, and provide all the guidelines within campaign descriptions of each advertiser campaign,” said Yi Shi, chief executive and founder of Avazu.

 

Not just publishers, even advertisers claim they are getting the short end of the stick. Advertisers or brands pay for people who are viewing their ads; some pay for clicks while others pay for installing apps. But about 5-10% of it is generated by machines, according to online measurement firm comScore.

 

AdCovenant, an ad agency, has come up with a solution that specifically aims to tackle the number of false clicks through rates with their solution. “We ensure 50% better return on investment as all of it is human impressions,” said Chetan Ahuja, spokesperson of Pune-based AdCovenant.

 

Source:The Economic Times

Copyright © 2015, Bennett, Coleman & Co. Ltd. All Rights Reserved

Licensed to republish

 

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