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Incentives Rule Online - Brand Equity (Aug 4, 99) |
What's precious yet scarce on the Web today? Space for a website
is dirt cheap, bandwidth getting cheaper, and webpages can be
created without spending too much money. But what everyone's fighting
for on the web is attention - getting user eyeballs and mind-share
for a few quality minutes.
To that end, new business models are constantly being created.
Where else would you find stores constantly offering a bulk of
their goods at discounted rates (any online shopping site)? And
where else but the Net would you get air tickets at discounts
of over 50 percent (Priceline.com)? Websites like CyberGold and
Netcentives go the incentive-for-attention route offering their
users a chance to trade their attention span for rewards ranging
from downloadable music and games to CDs and even frequent flyer
miles on your favourite airline! While most of these are successful
only on distant international shores, companies in India are fast
catching on to the fact that on the Internet, the online user
is continually tuned to a personal radio station - WII-FM (What's
In It - For Me?).
The first full-fledged website in the Indian market to start broadcasting
to cater to this need was Contest2Win (www.contest2win.com), now
simply c2w.com, keeping in mind the impatience levels of users
online. C2W edged its way slowly but steadily into the minds and
onto the fingertips of Indian users by striking barter deals which
involved their URL (Internet address) being mentioned in traditional
media in exchange for hosting contests and promotions on their
site. With enthusiasm that ran deep, but pockets that didn't,
Alok Kejriwal, CEO, did not spend on the traditional advertising
and PR channels from the time they went live in November 1998.
On the other hand, Hungama.com took the other route, living upto
its name when it launched in March 99. Online advertising, professional
PR, and attractive promotions in prominent net-savvy community
hangouts like night clubs and cybercafes in Bombay, Bangalore
and Delhi all went towards literally raising a hungama
about this new website in almost no time at all!
The business model of sites like C2W and Hungama is simple - they
believe in the Internet maxim: "content is king". And
they keep that content fresh. Of course, content for them is not
news and features, but contests, promotions and incentives rewarding
users for spending time on their sites. And there are four steps
involved in making this business model pay off for them:
Creating content
Both Hungama and C2W have aggressive teams that interact with
various brand and marketing managers to get more brands on their
sites, with hundred of big brands like Philips, HLL, UDV and Sony
already enticed by what the medium has to offer. Contests and
promotions are either created exclusively for the Net, or are
online adaptations of existing traditional world contests.
Attracting Users
C2W has emblazoned its brand - their URL - into the minds of current
and potential members by cross promotion in traditional media
like outdoor, print, television, and even on product packaging.
Hungama chose to storm the market and create an identity and brand
through physical contact in the real world where their target
audience cannot miss them. Special incentives to cybercafe owners
also ensures prominent display and rewards for getting their members
to sign up.
Keeping Users
By constantly adding new contests and promotions to their sites,
C2W and Hungama ensure that their visitors keep coming back. Hungama.com
has even gone to the extent of giving away prizes every hour,
by the hour, with over 100 prizes being distributed daily from
their office!
Selling Eyeballs
Today, C2W has a database 35,000 strong (growing at 35% per month),
all with authentic registration details - after all fake details
means that your prize may never reach you. Hungama, though a recent
entrant, is fast catching up. As these numbers grow, these eyeballs
will attract advertisers to the sites, bringing in advertising
revenue, either for banners or for paid promotions. C2W already
has Intel advertising on their pages, while the Hungama pages
are still banner-free.
The Future
C2W has already finalised plans for Pan Asian reach, and are looking
for strategic partners for the American and European market, to
become the world's contest portal - a one-stop site for contests
and promotions. "Free" seems to be a four lettered f-word
for Neeraj Roy, CEO, Hungama.com who emphatically states that
his site is not a contest freebie site - it is an ePromotions
site that will continue helping brands get their message to online
customers through incentives.
Whatever tag you put on them - be it freebies, incentives, contests,
promotions, or brand-building exercises in cyberspace, there are
more eyeballs being attracted, and slowly but steadily, more brands
being attracted by these eyeballs.
Lyndon Cerejo (email) is an Internet Strategist
and can be reached online at www.strategist.net