Start-up company and digital advertising network PayPod, which will provide a platform to enable advertising agencies and advertisers to place their ads on the Net and on mobile networks, expects to go live in a month. The company, founded by Mr Sashi Chimala (who earlier founded Qwiky's Coffee) and Ms Durga Das, is targeting small and medium advertising agencies in the country.

Ms Das, Chief Operating Officer and Vice-President (Business Development), told Business Line that PayPod's operations were now in the private beta/test stage. The company expects to sign-up no less than 500 publishers on the Internet (Web sites, blogs, newspapers' Web sites and such) and at least a 100 advertising agencies as well as several advertisers.

Specific to India

The model, tailored to help advertising agencies take advantage of the digital medium, is specific to India as agencies here play a critical role in their clients' businesses, including speaking to their customers and deciding the media plan, Ms Das said. In a way, PayPod will even function as the media planner for the digital world, she added.

The model is also India-specific in that it has a graded payment model, with advertisers paying not just for clicks and sales but for eyeballs (hits), she said, adding that others in the industry offer only performance deals and not view deals.

As in the offline world, PayPod gets a commission from the publisher. Some ad agencies in India do have digital divisions but these units themselves use other technical agencies to complete the job, she explained.

PayPod offers a full suite of back office support services to help agencies offer digital solutions.

Unless agencies help promote the digital space, that section of advertising will not grow, she said. Quoting a FICCI-PwC study, she said the growth of regular Internet usage to at least 35 million users by 2008 will drive the growth of Internet advertising (currently at Rs 160 crore). PayPod expects to tap into this huge potential.

More focused

The company's ad network solution will help advertisers be more focused in their campaigns. It will also provide tracking services so that results can be measured and returns on investment more accurately judged, said Mr Ravi Ramachandran, Vice-President (Engineering). The company may also look at using mobile gaming as an advertising medium at a later stage.