The presence of two strong content aggregators will also make the market tighter for full-range content behemoths — horizontal Web portals — that largely depend on online advertising revenues, they said. Already, the likes of Sify are moving away from the horizontal portal model and are trying to offer transaction-based services.
“Google has achieved a strong position in the Indian market as far as ad spends are concerned, which means that a majority of the effects of the acquisition would be reflected on the desi players,” said online research and advisory firm JuxtConsult co-founder Mrutyunjay Mishra.
Estimates suggest that Google, Yahoo! and the distant third MSN together command about 75% of online advertising budgets in the country, valued at about $120 million. “The merger would ensure the survival for MSN and allow the online branch of Microsoft to move to an ad-driven model, much popularised by Google,” said digital marketing firm Pinstorm CEO Mahesh Murthy. Read More>>