Internet to Syphon off mainstream media’s advertisement budgets in one or two years
08.08.2011,
18:01
Internet resources and Internet advertisement market started developing in Armenia recently. In this connection we interviewed Armen Martirosyan, director of All Media Company.
Internet resources and Internet advertisement market started developing in Armenia recently. In this connection we interviewed Armen Martirosyan, director of All Media Company.
ARKA – Your company recently launched AdNet.am, a new Internet advertisement. What project is this and what impact it will have on development of Internet advertisement market in Armenia?
Martirosyan – Our company has presented a new project, AdNet.am advertising network. There were no similar networks in Armenia before that. Its main aim is to unite only high-quality Armenian Internet resources into one advertising network using the most effective Internet advertisement formats. We have already run our first advertising campaign using rich-media format.
Remarkable is that advertisers have already expressed their interest in the project. This network is beneficial to all participants – advertisers, since they no longer have to deal with many sites, and to owners of sites, since it rids them of the necessity to think about monetization of their sites. This advertising network will care of selling ad spaces.
The network’s technical ground provides advertising companies with all the necessary planning and effectiveness-gauging instruments.
This project is unique in Armenia. We hope AdNet.am advertising network will spur development of Internet advertisement in the country.
In 2010, our company launched its first project, MediaGid.am news aggregator. This project is unique for Armenia as well, since only Russia and Ukraine among CIS member countries have such aggregators.
The main aim of MediaGid.am is to provide up-to-date, timely, trustworthy and unbiased information.
ARKA – What do you think about Armenia’s Internet advertisement market?
Martirosyan – Armenian Internet advertisement market is developing quite fast mainly thanks to enlargement of the number of Internet users and appearance of new projects, particularly development of the news sector and appearance of “social” sector.
Besides, Internet as space for boosting goods and services to targeted users, is gradually winning confidence among advertisers.
ARKA – How big is the share of Internet advertisement in our country? Will Internet ads be able to oust traditional types of advertisement in the future? On what factors it will depend?
Martirosyan – No data on distribution of advertising budget exist. Therefore, it is impossible to indicate particular share. However, it can be said for sure that Internet will siphon off a part of advertisement budgets from other media outlets, particularly from television, in one or two years. This will give a big impetus to development of ad spaces (sites), appearance of new types of ads and transition from mainstream advertising model to CRM (cost-per-mille) model.
ARKA – Which Internet ads are popular in Armenia and which of them are demanded abroad?
Martirosyan – Media (banner) ad is most popular kind of advertisement. The second most popular advertisement is context ad, which has capacity to grow thanks to appearance of small and medium companies in Internet.
Things in countries with developed Internet market are polar opposite – the share of context ad is far higher than that of media advertisement.
ARKA – Is there data on audience of Internet advertisement in Armenia? Are there situations when demand for advertisement exceeds supply?
Martirosyan – There are no particular data on Armenian Internet users, since no studies are conducted on this matter.
An approximate idea about the number and types of Armenian Internet users can be formed from Russian rating systems.
According to the statistical service Liveinternet.ru about 630,000 people visit Internet from Armenia every day. However, it should be taken into account that this figure doesn’t show the number of people, since one user can visit Internet from several computers, mobile phones and other devices. Nevertheless, this figure gives us an approximate idea of Internet audience.
Average daily audience of Armenian Internet grew five times this year, compared with 2010, and one user’s views three times. It means people in Armenia started visiting Internet more often and spending more time here.
To your second question I can say that demand exceeds supply mainly in December due to placement of ads for a certain period of time – one week or one month, and many advertisers are left with no space for advertising. In such a situation CRM (cost-per-mille) model would put things right.
ARKA – Representatives of which areas place their ads in Internet more often than others?
Martirosyan – The most active advertisers in Internet are financial companies, telecommunication operators and car importers. The thing is that these companies can afford to advertise in various media channels, including Internet.
ARKA – How many players (Internet advertisement agencies) are on the Armenian market?
Martirosyan – Internet advertisement market is dynamically developing. Many companies acknowledge Internet’s power, and this attracts them. More than 20 companies in Armenia offer their services, particularly on placing ads and boosting sites.
ARKA – Which sites are more attractive for advertisers?
Martirosyan – The most attractive places to advertisers in Armenian Internet are news sites as well as specialized pages spotlighting finance and car business, which embrace certain audience.
Russian portals and social networks attract more Armenian Internet than other outside Internet sources.
What about selection of pages for advertising, I’d like to say that as a rule, advertisers are guided by quantity, not quality parameters in their choice.
Very few advertisers or advertising agencies engaging in planning and placing clients’ ads ground their choice on quality parameters, such as composition and geographic distribution, or other important parameters.
Therefore, advertisers don’t see the expected result, and advertisement budgets are used ineffectively, while a right planning of a campaign would produce different effect and attract more advertisers.
ARKA – How much Internet ad costs in Armenia?
Martirosyan – No factors impact price-making process in Armenian Internet, excluding prices for context ads. Neither thematic focuses nor the number of views impact prices. That is why it would be wrong to speak about justified price for Internet advertisement.
ARKA – Is there any assessment of effectiveness of marketing in the network?
Martirosyan – Certain instruments for studies are needed for gauging effectiveness of marketing, particularly Internet ads. There are no such instruments in Armenia, since advertisers pay no attention to the necessity to gauge effectiveness, or their employees have no sufficient knowledge to analyze results of advertising campaigns. This lessens effectiveness of usage of the advertising budget.-0---
ARKA – Your company recently launched AdNet.am, a new Internet advertisement. What project is this and what impact it will have on development of Internet advertisement market in Armenia?
Martirosyan – Our company has presented a new project, AdNet.am advertising network. There were no similar networks in Armenia before that. Its main aim is to unite only high-quality Armenian Internet resources into one advertising network using the most effective Internet advertisement formats. We have already run our first advertising campaign using rich-media format.
Remarkable is that advertisers have already expressed their interest in the project. This network is beneficial to all participants – advertisers, since they no longer have to deal with many sites, and to owners of sites, since it rids them of the necessity to think about monetization of their sites. This advertising network will care of selling ad spaces.
The network’s technical ground provides advertising companies with all the necessary planning and effectiveness-gauging instruments.
This project is unique in Armenia. We hope AdNet.am advertising network will spur development of Internet advertisement in the country.
In 2010, our company launched its first project, MediaGid.am news aggregator. This project is unique for Armenia as well, since only Russia and Ukraine among CIS member countries have such aggregators.
The main aim of MediaGid.am is to provide up-to-date, timely, trustworthy and unbiased information.
ARKA – What do you think about Armenia’s Internet advertisement market?
Martirosyan – Armenian Internet advertisement market is developing quite fast mainly thanks to enlargement of the number of Internet users and appearance of new projects, particularly development of the news sector and appearance of “social” sector.
Besides, Internet as space for boosting goods and services to targeted users, is gradually winning confidence among advertisers.
ARKA – How big is the share of Internet advertisement in our country? Will Internet ads be able to oust traditional types of advertisement in the future? On what factors it will depend?
Martirosyan – No data on distribution of advertising budget exist. Therefore, it is impossible to indicate particular share. However, it can be said for sure that Internet will siphon off a part of advertisement budgets from other media outlets, particularly from television, in one or two years. This will give a big impetus to development of ad spaces (sites), appearance of new types of ads and transition from mainstream advertising model to CRM (cost-per-mille) model.
ARKA – Which Internet ads are popular in Armenia and which of them are demanded abroad?
Martirosyan – Media (banner) ad is most popular kind of advertisement. The second most popular advertisement is context ad, which has capacity to grow thanks to appearance of small and medium companies in Internet.
Things in countries with developed Internet market are polar opposite – the share of context ad is far higher than that of media advertisement.
ARKA – Is there data on audience of Internet advertisement in Armenia? Are there situations when demand for advertisement exceeds supply?
Martirosyan – There are no particular data on Armenian Internet users, since no studies are conducted on this matter.
An approximate idea about the number and types of Armenian Internet users can be formed from Russian rating systems.
According to the statistical service Liveinternet.ru about 630,000 people visit Internet from Armenia every day. However, it should be taken into account that this figure doesn’t show the number of people, since one user can visit Internet from several computers, mobile phones and other devices. Nevertheless, this figure gives us an approximate idea of Internet audience.
Average daily audience of Armenian Internet grew five times this year, compared with 2010, and one user’s views three times. It means people in Armenia started visiting Internet more often and spending more time here.
To your second question I can say that demand exceeds supply mainly in December due to placement of ads for a certain period of time – one week or one month, and many advertisers are left with no space for advertising. In such a situation CRM (cost-per-mille) model would put things right.
ARKA – Representatives of which areas place their ads in Internet more often than others?
Martirosyan – The most active advertisers in Internet are financial companies, telecommunication operators and car importers. The thing is that these companies can afford to advertise in various media channels, including Internet.
ARKA – How many players (Internet advertisement agencies) are on the Armenian market?
Martirosyan – Internet advertisement market is dynamically developing. Many companies acknowledge Internet’s power, and this attracts them. More than 20 companies in Armenia offer their services, particularly on placing ads and boosting sites.
ARKA – Which sites are more attractive for advertisers?
Martirosyan – The most attractive places to advertisers in Armenian Internet are news sites as well as specialized pages spotlighting finance and car business, which embrace certain audience.
Russian portals and social networks attract more Armenian Internet than other outside Internet sources.
What about selection of pages for advertising, I’d like to say that as a rule, advertisers are guided by quantity, not quality parameters in their choice.
Very few advertisers or advertising agencies engaging in planning and placing clients’ ads ground their choice on quality parameters, such as composition and geographic distribution, or other important parameters.
Therefore, advertisers don’t see the expected result, and advertisement budgets are used ineffectively, while a right planning of a campaign would produce different effect and attract more advertisers.
ARKA – How much Internet ad costs in Armenia?
Martirosyan – No factors impact price-making process in Armenian Internet, excluding prices for context ads. Neither thematic focuses nor the number of views impact prices. That is why it would be wrong to speak about justified price for Internet advertisement.
ARKA – Is there any assessment of effectiveness of marketing in the network?
Martirosyan – Certain instruments for studies are needed for gauging effectiveness of marketing, particularly Internet ads. There are no such instruments in Armenia, since advertisers pay no attention to the necessity to gauge effectiveness, or their employees have no sufficient knowledge to analyze results of advertising campaigns. This lessens effectiveness of usage of the advertising budget.-0---
