Tapsell’s share of online advertising market at 75% in mobile applications and 50% in the web
According to the IDEA, It has been a while since “Sanjagh” smart online advertising network has been integrated into Tapsell company. Tapsell also rebranded after 10 years of activity, and integrating all its collections into the “Tapsell” brand. This company now announces that it has become the largest digital advertising network in Iran by merging Tapsell, Mediaad and Sanjagh services.
According to the news, 15-20% of the online advertising market in the web space was owned by Sanjagh, which after the merger, they added this amount in the web space to Tapsell. This issue has caused him to calculate Tapsell’s share of this space at 75% in mobile applications and 50% in the web.
The director of Tapsel’s advertising department also recognized that one of the paths to the maturity of the online advertising industry is how advertisers and publishers connect with each other; An issue that he believes is one of the biggest criticisms of this industry.
The integration of Sanjagh in Tapsell and its results
Manochehr Sadri, the founder of Sanjagh platform: We started the negotiation in the middle of last year. Of course, we had been looking for fundraising in Sanjagh for almost a year. We looked for investors ourselves and one or two other groups approached us who were very willing to have an investment partnership with us. Finally, in summer or late October, one or two groups officially announced their readiness for investment.
On the other hand, our negotiations with Tapsell had also progressed. Our final conclusion was to go ahead with Tapsell. for some reasons; The most important reason was the similarity of DNAs to each other. In my opinion, in terms of morals and temperament, the members of Tapsell were very similar to the members of Sanjagh. We made this decision almost in the middle of autumn and it took until the end of the season to be implemented.
We officially started working together from the winter of last year. After that, many steps were taken. It was basically a complicated decision; Especially when two competing companies are considered. Of course, we have cooperated with all other platforms that have been and are in the market, and the experience of cooperation, their interaction model, what they do, etc. played a role in this decision. Tapsell seemed to be the right place and indeed after some time we came to the conclusion that our impression was not wrong.
The next step was what to do with brands (how to integrate brands into Tapsell; It took until two months ago for everyone to be rebranded to Tapsell, which of course is still going on. The next important step was that this merger should have a series of benefits for the parties; To consume less resources.
Another issue and actually the next goal was to have a bigger share in the web space, because Tapsell has always been in the app market leader space and we focused on the web and specifically in native ads. This was also a goal that was achieved; The market capacity of our collection has grown so much that it is no longer easy to talk about the market share.
It was earlier this year that we were technically fully integrated with Tapsell and used the same infrastructure. Although it was not an easy decision, in the end our final technical infrastructure was the one used by Tapsell. Then the technical team of Sanjagh focused on another space (video) and now they are still working on the same project.
Our business teams also merged very quickly; Because the processes were very similar and the members of the teams knew each other, their business and work relationship was formed and continued for a long time. Finally, today, we have reached this point where most of the businesses know us as Tapsell, and some of our colleagues still call us by the previous titles of Sanjagh and Mediaad.
The most important result was that our web capacity increased. Sanjagh and Mediaad had a share of the market.
Tapsell’s estimates show that today the web market should be in a balance of 50% at our disposal and 50% at the disposal of other collections that operate in this field. In the field of apps, this estimate is different and I think we have 75% of the market. This has been the most important achievement of this merger.
The problem with digital advertising
Sadri: The problem is not the companies; In my opinion, the companies that are active, including Tapsel, have adapted themselves very well to the conditions and crises, etc., and are still present in the market today and have an acceptable share. The issue was actually outside of our industry.
It means the same infrastructure issues as mentioned. For example, the country’s gross production will be halved in three years; This is something that happens in very few countries in the world; Unless it is in a country where war happens and its GDP is halved in terms of dollars.
By immaturity, I mean aspects of the advertising industry that are frequently in crisis and have been kept confined and closed. Some inside think that these restrictions are for our benefit, while in the end it will lead to the market remaining small and to our detriment. We are not a company that has taken advantage of rent and special opportunities like this to get a market, but we have created a market that did not exist and we are still willing to create more capacity than there is, to make the online advertising market more efficient.
The state of online advertising in Iran
Sadri: We have never had a year without growth. In fact, the online advertising industry has always been growing. Our main challenge is the rate of this growth, which should be much higher than these. Now the situation is much better than 6 months ago. We think that if the conditions are stable, our situation will be better in the next 6 months. A desire from the side of businesses is inevitably towards online advertising, an important part of which is served by Tapsell in the country.
I am optimistic about this growth process and I have many reasons for it; For example, the change in consumer behavior and the behavior of economic decision makers that is happening and the evidence that exists in the world to welcome online advertising. On the other hand, the structures we have created try to create better feedback for advertisers.
The artificial intelligence team that exists today in Tapsell has more valuable experiences than the artificial intelligence team that existed four years ago, produces better output, and naturally, considering the growth that is happening in the world, it is expected to always grow. While in other forms of advertising in offline space and television, etc., there is no such amount of innovation, creativity and forward movement. These are all the reasons that can be used to see the situation and the future as positive with all the challenges.
The future of Tapsell
Sadri: In my opinion, the share of online advertising will become bigger and bigger. Previously, there was not much desire from the side of offline agencies, which were and are larger collections compared to us, to bring advertising budgets and advertising campaigns to the online space. But several events have changed this process and will change it.
First, the desire to watch TV has decreased, and on the contrary, the desire to see VODs and UGCs has increased, and these are inherently online companies and have been able to form a good relationship with online advertising collections or form advertising companies themselves. Second, we are faced with many large and traditional businesses that ask us to run their advertising campaigns. Businesses that used to work with traditional agencies in the past now contact us directly.
About 4 or 5 years ago, companies said that we don’t have online work, or they said that we didn’t consider the budget for online work. At least no one speaks this dialogue now. So this change is bound to happen and one place that I think is overdue is offline agencies realizing that they have to pay a higher price. For this reason, in my opinion, this space will definitely get bigger.
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