Komli Media acquires Singapore-based online ad network, Aktiv Digital

By Kapil Ohri , afaqs!, New Delhi | In Digital | June 02, 2011
Aktiv Digital is the third company that Komli Media has acquired. In 2010, it bought a site representation company called PostClick, and an online advertising firm named Indoor Media.

The Mumbai-based online ad network company Komli Media, which received funding of Rs 67.5 crore in January, has acquired a Singapore-based online advertising firm named Aktiv Digital.

Komli Media was working with Aktiv Digital as its strategic partner for the past three years. Aktiv Digital is a four-year-old ad network which has tie-ups with more than 1,000 publishers and has a physical presence in the Singapore, Hong Kong and Philippines markets. The ad network offers branding and performance advertising-related solutions to marketers.

Speaking to afaqs!, Prashant Mehta, chief executive officer, Komli Media, reveals that the company has used the funding it received in January to acquire Aktiv Digital. He says, "We want to become a leading ad network company in the Asia-Pacific region, and Aktiv Digital's acquisition will help us strengthen our presence in the Southeast Asia region."

On why Komli Media wants to tap this region, Mehta says that the Southeast Asian online market is more mature and very lucrative. "The size of the online advertising market is more than Rs 1,000 crore. The online ad rates are pretty good, internet penetration is high, and the online audience is mature in this market," says Mehta.

According to the data shared by Komli Media, the internet penetration in Singapore (4 million online users) and Hong Kong (4.8 million online users) is about 70 per cent. Philippines has 24 per cent internet penetration, and about 24 million internet users.

Mehta further adds that the acquisition of Aktiv Digital will help Komli Media to expand its reach from 50 million users to more than 60 million users, worldwide. He indicates that Komli Media will further strengthen its presence in other Southeast Asian markets. He says, "Going forward, we would like to expand in markets such as Malaysia, Indonesia, Thailand and Philippines." Mehta clarifies that there are no immediate plans to tap the China market, which has more than 470 million internet users.

For the record, Aktiv Digital is the third company that Komli Media has acquired. In 2010, Komli Media acquired the Australia-based site representation company, PostClick and the UK-based online advertising firm, Indoor Media.

PostClick is an online media sales company which ties up with online publishers, mostly on an exclusive representation basis, to represent and sell their online ad inventories to advertisers. Its business model is based on the commission earned through publishers from the sale of ad inventory.

Indoor Media owns an ethnic online ad network named AdMasala, which enables advertisers to target and serve ads to South Asian internet consumers residing in the UK. AdMasala has partnerships with more than 400 publishers across various parts of the world, including Indian publishers.

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