Affle India India Mobile Internet Advertising Leader Untested but worth a good look ValuePickr Forum


Capturing India : India with its rapidly growing to be Internet user base has become a beautiful destination for foreign ad tech proprietors, adding Criteo, Mobvista, FreakOut – who’ve set up these days, along current agencies similar to Affle, RevX, InMobi, among others. However, India gifts its unique set of demanding situations similar to a disjointed demographic which is just getting habituated to digital applications reminiscent of use of e trade, digital bills, etc. . Only 10% of Internet users are active i.

e. , making a purchase order as a minimum once per thirty days e trade clients. Frost and Sullivan believes that this makes it a more difficult panorama for advertising tech to be able to parent the users who have the maximum propensity to transact online. It could be a hard market to keep up, even for market individuals who are globally a success. With an average CPC at USD 0.

1 to 0. 3, the cost points are quite low compared to the worldwide market. Frost and Sullivan believes that reaching profitability in such a cost delicate market is feasible only for businesses which are popular with the dynamics of consumer profiles and have a track record of working alongside brands locally for years. Ad tech, while being extremely appealing, hinges on the achievement of knowledge acquisition and a few vendors globally have demonstrated low profitability or losses even in high CPC markets. Frost and Sullivan believes that India, with its constraints of low CPC, insufficient availability of data and generation will pose tremendous challenges for scalability and growth, even for based overseas agencies. “Word of caution here.

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Be wary of any agency that uses machine learning, artificial intelligence and deep studying excessively in a doc. I got skeptical and determined to dig extra and took a at linkedin on their personnel. Though the company claims 187 employees and 81 of them “full time members in research team” I did not find a single such tech profile worthy of being in such a team, leave alone lead one or build such products. Most of those personnel in the “data operations” or anything associated with “data” haven’t any such applicable experience and the few can anticipate single hand that even mention such adventure are very green and have joined only in the last year. Most of the personnel appear to have joined in the last year or two. Where are the geeks that built their items?A product agency such as this with claims as high ought to be screaming with talent that has stayed on for years, which is shockingly absent going by linkedin.


None of the personnel they claim to have in Singapore and Indonesia are on LinkedIn?What such product company doesn’t have ESOPs, for eg. ?They keep comparing themselves to InMobi that’s in various league altogether, nearing $1 billion in revenues. What’s interesting though is that InMobi with its billion dollar valuation couple of years back was still not ecocnomic. So this doesn’t seem like an easy business to be in, in normal but by some means Affle is reporting some mindboggling growth. Neither is the claims of cost per click being basic true. I be aware internet marketing would mechanically use CPD cost per download and value per conversion an order customarily to evade gaming of clicks.

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Why would an individual utter something so blatantly untrue?51% of their income is in Indonesia. Will this money ever get to Indian shareholders to pay a dividend?Can we trust the cash in Indonesia when its not audited by Indian auditors?8k Miles any one?. Then the ultimate query why doesn’t a company thats starting to be so fast and is claiming its going to be more ecocnomic in a field that brings VC money by the sackful, not seek it and in its place choose to list itself in the public markets?Another appealing thing to mull is that InMobi is at a $1 billion valuation 7000 Cr while Affle which makes about 4% of InMobi’s topline is already valued at 50% of InMobi?3600 Cr mcap as of today, or approximately 15x sales!Nothing is smart here. Right?ii World is coming to terms with data and privacy after Cambridge Analytica scandal. Likes of matured organizations like Facebook are being penalised to the tune of 5bn in data privacy associated cases.

The agency’s business model constantly demanding situations the primary right to privacy. So, all could be great one day and alter absolutely next day in some geography/country. A company like Facebook could handle such things but its going to be hard for a new player. They must watch out, adhere to compliance and adaptable to the altering market and governance. This is a risk for any pretty new player.