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How Amagi Media Democratised The $3.5 Bn TV Advertising Industry For Brands Using Geo Targeting

How Amagi Media Democratised The $3.5 Bn TV Advertising Industry For Brands Using Geo Targeting

“Selling your organisation to the media is a essential a part of promoting it to each person else.” This assertion made through Peter Thiel in his book Zero to One aptly describes the continuing fad at the back of the glamorous advertisement screens of corporations. From print to television, and from digital to personalisation, we've got come an extended way in luring clients through advertising strategies of assorted kinds. While entrepreneurs today appear to be having a run toward digital adtech, there may be one undertaking, nonetheless capitalising on conventional TV marketing mode, on the equal time, harnessing the electricity of latest age techs together with geo concentrated on, device studying and deep learning, which isThe Amagi Media Labs.

For millennials, Amagi Media Labs is the pioneer of geo focused on primarily based TV advertising within the country. The Bengaluru-primarily based media era business enterprise has also been touted by media as India’s largest TV ad network.

Let’s have a look at some stats of the organisation:

Working with 23 geo-focused on channels from the stable of Zee Group, Viacom 18, Sun Group, TV 18, Times, NDTV and Discovery.

A community of 4,000+ small and big brands who have used its geo-targeted solutions until date.

Enabling big TV networks like AMC Networks, FLIK TV, B4U, VIACOM 18, D-sports activities, Turner, Scribbs community, Zee, NDTV and around one hundred+ channels to launch, function, and monetise channels anywhere inside the world.

Deployments in over forty+ international locations.

$forty five.2 Mn raised in funding and backed by using traders along with Emerald Media, Mayfield Fund, Nadathur Holdings, Ojas Venture Partners, and PremjiInvest.

A crew of 260 employees, R&D centre in Bengaluru and Sales offices in Delhi, Mumbai, Chandigarh, Kolkata, etc., in conjunction with international places of work in London, New York and Hong Kong.

Since the launch in 2008, the founding trio – Baskar Subramanian, K A Srinivasan and Srividhya Srinivasan, classmates in university and co-workers at Texas Instruments – are recognized for the severa awards and accolades for the improvements they have got introduced to the industry. For the trio, this is their 2d challenge together, the primary being a wireless audio era enterprise, Impulsesoft, received by Sify Technologies in 2006.


Post Amagi Media’s release, there were a few companies which released comparable merchandise in India. This blanketed Rediff’s Vubites and Star India’s Adsharp. While Vubites has already stopped operations, Amagi Media claims its era to be manner superior from Adsharp, that is powered by way of Cisco Technologies.

We also got here throughout some other venture, Gaian Solutions based totally out of India, Singapore and the US, offering nearly a comparable product stack as Amagi Media. However, we determined that the employer is majorly concerned in authorities initiatives and has a plethora of other answers related to building impactful content material reports in sectors such as banks, lodges, schooling and greater.

However, Amagi Media is one player this is totally leveraging geo targeting technologies in TV advertising to growth a brand’s reach to its audience. This displays inside the company financials too.

As shared by using Baskar, the company is developing at an aggregated boom charge of 250% yr on 12 months. “We are already in a bracket of $15.Sixty three Mn (INR a hundred Cr) revenues and we similarly aim to grow approximately 2x this year.”

A Glimpse Into The Amagi Media Empire: The Vision, Product Stack And More

Baskar believes, that India could be very “nearby’ in its competition even in terms of large advertisers. Today, every emblem in every market faces competition from local brands. Even main international brands like Unilever, Glaxos and P&G want to win local turf wars and no longer just one huge national conflict. Every product has heterogeneity in phrases of marketplace call for.

Also, for a majority of the manufacturers, a full-size percent of sales comes from the Tier II and Tier III cities. These include cities wherein internet penetration is pretty low and on-line marketing will now not get the preferred outcomes. Again, TV is the best medium to reach the hundreds here.

It is this very want of permitting the brands to carefully target their ability client base, that Amagi Media’s imaginative and prescient stands on.

Amagi Media, thru its services, permits big TV networks and channels to release, function, and monetise channels everywhere within the world. This is sponsored by means of Amagi’s cloud-broadcast era, geo targeting machine, and patents as well as series of merchandise together with Amagi Mix, STORM, ThunderSTORM and greater, thereby running closely with even SME’s and OTT gamers.

The business enterprise also these days partnered with BARC (Broadcast Audience Research Council ) in October 2016, to screen geo concentrated on primarily based TV advertising and assist advertisers compare their country wide geo focused on primarily based ad-campaigns on BARC India’s software. The crew is likewise running on exploring device mastering and deep gaining knowledge of abilities, and could soon be announcing some predominant additions in its product stack in following couple of months.

Sowing The Seeds Of Amagi Media Labs: Hassles Of Concept Ideation

Richard Branson once said, “Nobody has a monopoly on suitable ideas, and you may never inform exactly while you'll give you them.” A similar element took place with the Amagi Media founders.

After wrapping up their first mission, the trio changed into attempting to find any other concept to test and changed into looking at multitudes of plans in distinctive commercial enterprise models, unique markets and developing developments.

As Baskar reminisced, “This was in 2007. One Monday morning, around 11 AM, we were sitting in a park in Bengaluru and were discussing what innovation should we do in tv or media. Suddenly, a young boy approached us and requested to expose our arms to him and claimed to inform our destiny. It struck to us that this young boy in reality is aware of,  humans sitting in a park on a Monday morning are jobless, and it’s his hazard to earn. So he is aware of it absolutely a way to target his clients exactly. And we struck gold then and there best.”

This became the time while TV advertising become considered because the area handiest for manufacturers with a huge budget for media advertising. For any advertiser to show off its advert on television, a national tv advertising spot needed to be sold. As in line with facts available, in 2007, for a ten sec country wide spot, an advertiser wishes to pay around INR three,50,000, which is pretty steeply-priced to have enough money through the small manufacturers or brands with only regional presence. Even nowadays, a 30 seconds countrywide marketing spot on an average cost INR 1 Mn for maximum Indian indicates.

To this Baskar delivered,

“We recognise, that similar to the astrologer boy, TV advertisers additionally require a targeted advertising and marketing. It’s truely beside the point to market your product nationally in case you are selling best in New Delhi. From an outsider perspective, we noticed media as an thrilling opportunity. Clearly, being from a era historical past we might wanted to study how technology may be leveraged to disrupt the media ecosystem, and create extra price for the complete ecosystem.”

Dousing The Idea Seeds With Experience: The Tech Twists Added To Traditional TV Advertising

The concept Amagi Media Labs rooted for changed into simple. It buys business time on TV channels such as ZEE, IBN 7, and many others., and sells these ad spots to advertisers at the regional/ hyperlocal foundation. In this way, one ad spot, which traditionally receives occupied through one country wide advert, can then become to be had for more than one advertisers parallelly, lowering the value for advertisers and growing consistent with spot rate for the TV channel.

For instance, at gift, Amagi Media’s pan-India market is divided into 20 divisions. These markets may be a specific city-like Mumbai, Delhi, Bengaluru, a kingdom like Maharashtra, Madhya Pradesh, Uttar Pradesh or a place like North East, Punjab/Haryana/Chandigarh amongst others. Hence, a single advert spot may be offered to twenty special advertisers for each channel.

This means that, for the duration of a day by day soap commercial break, a person sitting in Mumbai can might be possibly watching a extraordinary commercial, and a person within the same time zone in Delhi, may be looking another industrial.

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Also, if a countrywide ad spot prices think, INR a hundred, then the use of Amagi Media’s generation, the identical spot may be offered 20 instances for specific pricing in one of a kind areas. For instance, INR 20 in Delhi, INR 30 in Punjab and so on. Thus, on average, a TV channel receives extra than what it is able to get with the aid of promoting it simplest to a country wide spot.

As Baskar introduced,

“Let’s say there's a 30 2d ad spot. Traditionally on it the same ad turned into going nationally, however now for each region a distinctive advert is broadcasted for the same 30 sec spot. So, which means both of you are watching identical content however in the course of the advert break, you are seeing exclusive adds. Thus, at the same time as a TV channel is earning extra for the identical ad spot, an advertiser is paying handiest for its centered customers and no longer the entire country. This created a win-win scenario for each the TV channels as well as advertisers.”

So, What’s The Tech Behind This?

Typically, TV channels burst off the satellites after which comes down to specific multiple cable tv bins or DTH servers. At these places are stored the clever containers, which has the capability to keep information in addition to discover the spot in which the region precise ad has to update the national one.

The cause for the geo focused on based TV advertising comes from a completely unique watermark inserted at the video/audio signal. The watermark is a form of invisible and inaudible identifier like a product barcode which, on being scanned by using the smartbox, offers the cue to run a neighborhood/regional advert and skip the country wide ad to where it’s required.

As referred to on Amagi Media’s net web page, “Amagi’s solution may be customised to guide the duration and frequency of all ad-replacement wishes. Amagi’s solution is based on a patented content material cause (The Amagi Watermark) and STORM, an better satellite tv for pc receiver that descramblers and decodes the channel similarly to putting nearby advert seconds.”

Let’s Consider Some Use Cases.

Amagi Media has worked with some of manufacturers so far and helped them attain their target audiences. The first use case Baskar shared became of Santoor – whose major TG is South marketplace. Apart from regional channels, to boom their share of voice to the percentage of marketplace, they use Amagi channels additionally correctly, like Zee TV or Zee Cinema.

Another instance might be Horlicks whose major markets are east and south or Dove, that's an city Tier I logo. Through Amagi’s geo-targeted answer, they can advertise on mainstream channels at city/country specific levels.

“Furthermore, Amagi Media has been helping lots of SMEs with Amagi blend to come on TV as nicely since it's miles now feasible to put it on the market on national TVs at a fraction of countrywide price due to geo-targeting. With Amagi’s new e-portal Amagi Mix, we're making quality media making plans, buying and records analytics accessible to SMEs throughout the kingdom which changed into not there in advance,” brought Baskar.

Selling The Concept Of Geo concentrated on In TV Advertising: The Initial Struggle To Establish Amagi Media Brand

Well, because the experienced ones say, building geo concentrated on generation is one factor, doing enterprise with it is an altogether extraordinary revel in. Amagi Media founders were no exceptions right here. The first few demanding situations for the co-founders had been to put together a marketing strategy, look for an workplace space, and then most significantly persuade entrepreneurs and advertisers of the advantage their geo concentrated on generation can bring on board.

So, they sat down at coffee shops and in round a month’s time, eventually came up with a very good marketing strategy. The trio then ended up at Nadathur S Raghavan Centre for Entrepreneurial Learning (NSRCEL) of Indian Institute of Management Bengaluru and began with Amagi Media Labs.

As Baskar said,

“At that point TV and marketing changed into already a large INR 15,000 Cr market, that we have been looking to disrupt, that too with a technology and a commercial enterprise model that humans have now not heard of. So, we maintain on conjuring solutions to questions consisting of why might humans will hear us, why might advertisers will adopt this technology, how ought to we go and pitch, and so forth. We had been complete outsiders to the industry. So the challenges have been excessive sufficient for us.”

Thus, with a purpose to make their pitch strong, they hung out with advertisers and numerous channels each in India and abroad to pick out their key troubles.

“By 2009, we were given an knowledge that the present TV marketing business is a very complex set of the ecosystem, and we were just three people in a room seeking to tap out an idea which proves very very far fetched. However, speedy forward to today, we're India’s largest geo focused advertising centre. It turned into 2010 while we began the commercial enterprise, and inside the ultimate 10 years we've got created a new marketplace and evolved it,” he introduced.

Baskar similarly believes that, globally, the decision-making system is a whole lot quicker than in India. There has been seen resistance to exchange within the Indian market, to undertake new era within the area of TV advertising.

“This is some thing more cultural and we're hoping this may trade with time. At present, the essential project is posed by using our present infrastructure and that has to conform with time. Also, the readiness index to experiment and adapt to new technologies could be very low in India, which in the long run makes the complete structure, the most important task to continue to exist in,” he brought.

In Conclusion

Since human beings began buying and selling, classified ads in special bureaucracy were used to gain attention and establish a clean positioning in the long run consumer’s thoughts. However special the challenge is, be it on line or offline; startup or a longtime brand, achieving target audiences is the maximum tedious undertaking each enterprise is brainstorming for.

While India is leapfrogging to be a virtual country by using 2020, it's far predicted that digital advert spending In India may be at the upward push. However, the contemporary stats present a completely one-of-a-kind situation.

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A June 2017 file by using Magna projected that even within the subsequent 5 years, tv will nevertheless be the largest media in 2021 with a market percentage of 39%. Leaving at the back of offline media at 9.7% and digital at 25.Five% growth. While residing in a virtual technology, the word ‘nevertheless’ obviously drives one to the vast capacity this quarter has to offer. And, this is the increase that adtech firms like Amagi Media are capitalising on.

The record further adds that, “Television marketing is anticipated to develop at over 10.Three%, with Free to Air (FTA) channels gaining importance, localised content material and excessive-definition (HD) experience boosting nearby channels’ viewership.” Another report by Exchange4media counseled that some of the diverse traditional media advertising, spends on tv stand at most forty one% with INR 22,872 cr.

This is any other possibility for the advertising corporations engaged in constructing the primary infrastructure for geo focused on advertisements to regional audiences. With merchandise like Amagi Mix, Amagi Cloud and Amagi Measure, Amagi Media is currently leading the %. The analysts similarly consider that in close to future geo concentrated on can be developed to an extent that a broadcaster can insert local each day shows and films, much like classified ads, in the course of the country wide playout of the content material.

However, one can't deny the reality that virtual marketing is pacing up swiftly with TV advertising and other solutions. Digital adtech has been touted to sign up a 28% boom price, and digital ad spends were anticipated to attain the INR 10, 227 Cr mark in the subsequent five years via Magna. Within digital, cellular is driving spends with a growth rate of sixty five.7%.

Amagi Media has started exploring alternatives which includes Thunderstorm, connecting it with OTT systems. But with each and each market getting crowded with increasingly gamers, the access boundaries are quite low even for corporations running with patent technology. So, how likely Amagi Media be able to preserve its boom, will spread with time. For now, Amagi Media is on its manner to turning into the magnate of Indian TV advertising industry, harnessing the strength of geo targeting.

Author Biography.

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