The bids on AdWords are soaring to new heights everyday. Some advertisers are even shelling out up to $10 per click. So, naturally the question arises - Is this complete madness or is there any logic behind such aggressive advertising?

To me, it does make some sense to bid aggressively if you have the right strategy in place. These are two scenarios you can consider:

1) Every client you acquire, on an average spends $12000 with you in a year. In this case, you do not mind spending 10% of the revenue as customer acquisition cost. Therefore you can comfortably bid $10 per click (provided you have a site which can convert 1 out of 120 visitors). Thus, looking at a lifetime value of a customer makes it a good investment.

2) If you have mastered the art of persuasion (or have hired a master of persuasion), and have come up with a website with converts well (visitor > customer conversion), every visitor you are driving to your website is equivalent to revenue . So go ahead, rock the boat and bid out all your competitors. You will get more customers and will also have lower customer acquisition cost. What more do you want?

So, expensive keywords bidding do work, if they are backed with high lifetime customer value and/or higher conversion on the website. And yes, those Internet marketing experts are not insane! In fact most of them are very smart.

So bid smartly!

Everyone who watches television in India must have come across the "Hari Sadu" advertisement aired by Naukri.com. This ad became very popular for its creativity and also won the award from the Advertising Club Kolkata. Here is the full story board followed by the video of the ad.

There has been a lot of controversy around the advertisement by two set of people:

1. Whose first name is "Hari"
2. By a group of people who caused objection since "Hari" also refers to a deity in Hindu mythology

Naukri.com decided not to withdraw this advertisement citing that this is a work of fiction and they got a clean-chit from Advertising Standards Council of India.

This advertisement is really humorous and can be a great way to advertise a job site. In fact they managed to create a character - Hari Sadu, who can be recognized with the Naukri.com brand.

On the other hand, I find the ad to be in a very poor taste, showing bosses in very poor light who should be insulted and abused when opportunity strikes. This is teaching people to consider boss (or a business owner) as a blood-sucking beast, an idiot and an inhuman being. This is definitely not true in most of the cases. Above all, it shows that - when you don’t need someone, have a go at him - and walk out of the door!

In a growing economy like India, where attrition is sky high, job ethics are hard to spot and consideration for one’s job responsibility is at an all time low, this ad has only added fuel to the fire.

I know, Naukri.com has got superb mileage from this ad and it is close to heart of thousands of people. However, the question remains - Is this ad instilling the right culture? As a corporate, does Naukri.com understand it’s responsibility to communicate the right culture to the people who are destined to shape the future of this economy - the young executives.

Reliance’s BigAdda, Rediff’s iShare and Naurki’s Brijj.com are the latest dotcoms to hit the Indian social networking marketplace. It may trigger the next dotcom explosion with many more mindless dotcoms in line with these me-too networking sites by public listed biggies of India. Soon, we will forget why the first dotcom boom wave came down crashing after showing colorful dreams to thousands of tech-entrepreneurs worldwide.

I will personally advise new startups to keep away from such me-too type projects unless they have a solid niche, a risk-managed business model and a proper revenue model.

In fact, I am not at all optimistic about success of any of these new ventures unless they offer a great reason to be a part of it. The market place is already saturated and people are finding it difficult to manage their multiple social networking accounts and commitments. Besides, most of these sites do not offer any value addition apart from entertainment. Gautam Ghosh, an avid blogger shares a simmilar view on the subject.

If I have to select a possible winner among these biggies, I will go for brijj.com, which can take a turn towards the business model adopted by yellowjobs.com of NDTV. Another reason for possible success of brijj.com is that it is designed to be a business networking portal. It offers you a reason to spend time and have a clearly marked revenue model. In comparison other sites, just like their global originals heavily depend upon a speculative value creation and are looking for a buy-out similar to youtube.com which will make them rich overnight.

Do check out how many times people are referring to "Internet advertising" as their business model for their social networking website. It is not that Internet advertising is not BIG business. But it will just not work for social media websites in long term. And it is a foolishness to bet on Internet advertising as a revenue channel. We know it from the Y2K dotcom meltdown. In fact I can see the same madness as Y2K. We are not yet there, but we know it can peak very quickly  

Do you think these sites will bloom?

Hindustan Computers Limited (HCL) is one of the top-five IT companies in India.

Recently I saw their latest media campaign which says: HCL - a $4 billion company.

I have never seen such a poor tagline before. In fact it was amusing and I could not stop laughing when I saw it on an outdoor display. The first thing that came to my mind was - "Is HCL up for sale? And is this the price they are asking for?"

This tagline does not communicate anything to a prospective customer which can help him in understanding the values and/or goals of the company. It only communicates that this company wants to SELL (Because $4 billion was their sale in last FY) and actually HARDSELL with such a stupid tagline.  No one is interested in your last FY turnover. People or prospective customers want to know what you can do for them and how are you different from other peer companies.

Frankly, this tagline sounds like a joy-cry from a child who is over-excited with his maths score (and that too when he has not topped the class!).

HCL is no doubt a great company. In fact I am highly inspired by one of their promoter - Mr. Ajai Chowdhry. But whoever created the campaign has been very immature and hardly understand branding. They could not capture the essence of this company and have totally misrepresented them in public. HCL is a pioneering company which has several interesting innovation to their credit. None of them have been used to highlight the achiements of the company. In fact I was reading about Shiv Nadar in Forbes Asia magazine as he was on the cover as the "Tamil Tycoon". The article highlights on the "new style" engagement model that HCL has adopted by taking a long term stand with their customers and is sharing the ups and downs of clients’ business! I could not stop myself from saying - WOW! Its a winner formula. But unfortunately for a widely used public campaign they used the "$4 billion company" tagline.

As a prospective customer - "How does your being a $4 billion company helps me apart from getting an assurance that you wont be bankrupt and out of business soon?"

I hope they rethink over it soon..

Recently I was trying to make a payment for a company purchase online using my MasterCard. Inspite of having a positive balance the transaction did not get through. I tried my sisters card (which again is a MasterCard) and it still wont go through.

Then one of my collegue volunteered to help me by trying his card.

It worked!

I asked him which card did you used - He said Visa.

I felt the "Visa Power". I also realized that "Something money cant buy. For that you have MasterCard"

Abhishek