It’s pay back time for Star India — from auction portal Baazee.com and education portal eGurucool.com in which Star has invested an estimated Rs 45 crores each. Both the Internet companies would now be lavishing a certain amount of ad-spend to the channel. This could also possibly explain the simultaneous spurt in advertising by these two companies on Star channels in the recent months.
Mr Sunil Rajasekhar who oversees the portfolio of investee companies at Star said that both sites started aggressive advertising on the channel almost simultaneously. He also confirmed that the two sites were paying cash up-front for these spots, like any other advertiser.
The arrangement obviously goes beyond merely tapping synergies between the channel and these sites. While synergies typically could be in the form of joint promotions, advertising spots clearly call for a cash outgo from the sites and would typically call for a serious evaluation of competitive deals while chalking out the media plan.
The advertisement revenue commitment appears to be yet another move by Star as a part of the consolidation on its dotcom and Net-related investment commitments in the past months.