One of the reasons why Google is so successful at Adwords, and not so successful at Adsense, is that the context in which advertising is placed is extremely important. When people are looking, they also look at ads and click on them if they seem relevant. If someone is reading an interesting news article, it might be less so.

Newspapers have discovered this long back, and classifieds are the most profitable piece of the newspapers’ business (more than display ads, which require an ad/edit ratio).

Would be interesting to identify other contexts in which advertising can be effective… could be a billion dollar problem.

Alok Mittal

Alok is a first generation entrepreneur, now in the venture capital business. Alok heads up venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Alok is also a founding member of Indian Angel Network - an organization comprising successful entrepreneurs looking to invest in seed stage businesses. Prior to this, Alok cofounded JobsAhead.com, a leading job portal which was acquired by Monster.com. Alok is an active charter member of TiE Delhi. Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.

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