AdBag Wants To Create New Advertising Medium With Ads On Your Bags

Like it or not, but we are stuffed with ads – right from Internet, Mobile, Tablets to TV and Billboard ads. As an advertiser, some of these mediums do not offer targeting and some do not offer measurement – maybe there is a hybrid channel that brings right targeting and can be measurable?

AdBag, a Bangalore based startup offers something very unique – i.e. eco-friendly bags + a way for advertisers to reach out to consumers.

If you look at the current trend, state governments are after retailers to ban plastic bags and the only option they are left with is to go for eco-friendly bags. These eco-friendly bags are costly and that’s where AdBag’s business model comes into the picture.

AdBag is able to offer retailers bags at approximately 50% of what they currently pay. In a packaging industry where margins run lower than 7%, other suppliers of packaging materials have a new competition as AdBag is not just selling bags, but is creating an adverting medium for advertisers (thereby reducing the cost of the bags).adbag

What about targeting? AdBad has categorized distributors based on locality, income bracket and profession of users shopping in that locality. The company boasts of a network of 500 retail media distributors and serves up to 50,000 ads/day distribution

Will AdBag create a new medium for advertisers? Only time will tell, but if you look at the overall usage of how bags are used in a regular household, there surely is a great opportunity here.

Having said that, do you think AdBag should do more of direct sales and skip media buying agencies route (most of them still live in archaic world)?

Here is a quick QnA with Rohit Mukherjee, founder of AdBag:

QN. Your work experience/life prior to starting AdBag.

Ans: I have worked mostly in the US commercial real estate market prior to this, and have also worked in the sustainability field here in Bangalore, Investment research for SRI funds etc.

QN: Importantly. how are you selling the service to advertisers who aren’t so aware of this medium.

Ans: Most advertisers use advertising firms that decide on media allocations and spends. Most of our effort is in raising awareness with advertising firms and agencies. We are also hoping to move into direct communications with smaller advertisers as well.

QN: Are these ads one-sided or you print on both the sides?

Ans: The ads are one sided for the most part, we are in talks with larger branded retailers (Super / Hyper markets) to keep their logo on one side as they currently do. We are in the works of creating a double sided bag for use at smaller retailers to bring the cost per ad lower.

QN: Who do you compete with? You are selling bags or you are selling ads+bags?

Ans: We sell ads+Bags. For example (numbers are not representative) if a bag costs us Rs.10 we collect Rs.10 from the advertiser and Rs.5 from the retailer. (where the retailer would normally have to pay Rs.9 without the printing for a comparable bag.) our true competition is conventional print and out door advertising, bag suppliers cannot compete with our pricing to retailers as it stands.

What’s your take on AdBag?

Interesting startups: PhokatCopy – Discounted Print outs for College Students (Advertising Supported) | CashUrDrive – Get Paid to Display Ads on Your Vehicle

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