Monday, June 12, 2006

Transcript (unedited) of June 2nd chat - Ecommerce and Web 2.0 with Venkat Kolluri of Chitika

19:37:34 Richard Seltzer: We'll be starting in about 20 minutes, at 3 PM Eastern
19:38:30 sujamthe: joined
19:38:48 sujamthe: Hi, richard
19:39:47 Richard Seltzer: Hi, su.
19:59:28 Venkat: changed name
19:59:46 Venkat: Hi
19:59:59 Richard Seltzer: Welcome, Venkat. Glad you could make it.
20:00:26 Venkat: Great to be here !!
20:00:34 Richard Seltzer: It's 3 PM (here in Boston) so we might as well get
started. Venkat, please introduce youself.
20:01:32 Venkat: I am Venkat Kolluri, CEO and Co Founder of Chitika, an online
impulse merchandising company
20:01:35 Richard Seltzer: We're trying to understand new directiosn in business
on the Web. Sometimes what's new is evident. Sometimes not.
20:02:00 Richard Seltzer: From taking a quick look at I'm guessing
that what's new there is hidden.
20:02:17 Richard Seltzer: On the surface, Chikita looks like an old-style Web
20:02:38 sujamthe: Hi Everybody
20:02:44 Richard Seltzer: What goes on the behind the scenes that's different
from what we would have been back in the 90s? What can you do now that you
couldn't then?
20:02:59 Richard Seltzer: Hi, Su.
20:03:10 Richard Seltzer: Su, please dive in.
20:03:49 Richard Seltzer: Would you classify Chitkita as a "Web 2" style
business? if so, why? What's the most interesting aspect of your business?
20:04:00 sujamthe: Thanks Richards. I am also curious to find out what Chitika
does and see if Venkat can help us understand how ecommerce has changed in
recent times
20:04:17 Venkat: Richard, at Chitika we are bringing to the world of online
merchandising all the secrets that worked well for online advertising
20:04:17 Richard Seltzer: Is there any community-related activity that goes on
in the background?
20:04:28 Richard Seltzer: And what do you mean by "merchandising"?
20:04:31 Venkat: Hi Su
20:04:58 Richard Seltzer: I never knew that anything worked well for online
advertising. What did?
20:05:39 Richard Seltzer: Consider me a "devil's advocate". I'll be poking
around a bit, trying to understand what's new and interesting.
20:05:50 Venkat: Richard, although advertising and merchandising can both be
broadly grouped into the same bucket, advertisiign focuses more on the "branding
aspects" where as mmerchandising is more focused on the sales
20:06:46 Richard Seltzer: I'm lost. Can you give an example of online
merchandising? I dno't see anything for sale directly by Chikita at the Chikita
site. Is that accurate?
20:07:05 Venkat: Both parties jumped on board the Web" band wagon the 90's,
and took a "batch and blast" approach to see if that would work online
20:07:09 Richard Seltzer: Do you simply provide a venue and tools for other
companies to sell their goods and services?
20:07:20 Richard Seltzer: If so, what's new about how you do it?
20:07:35 sujamthe: Hi Venkat, I was remembering you as I heard about upromise
sale y'day. First let me hear about chitika
20:08:23 Richard Seltzer: FYI -- the links at the bottom of the chikita home
page for "About Us" etc. don't work with my browser (IE 6.0)
20:08:29 Venkat: The "batch and blast" approach bombed
20:08:51 Richard Seltzer: Venkat -- what is "batch and blast"? And what do you
do that's different?
20:09:16 Richard Seltzer: Also, (if you can clone yourself and type twice as
fast :-) I have a couple questions about upromise.
20:09:25 Venkat: But advertising is again back in business becuase new models
that are non intrusive, (like contextual advertising) got introduced to this
20:09:32 sujamthe: Venkat, isn't merchandising in ecommerce about finding the
right items to be displayed at the right place for the targeted user?
20:09:39 Richard Seltzer: I recently signed up for upromise (before I knew you
would be a "speaker" here.
20:09:44 Venkat: Exactly !! Su
20:10:03 : changed name
20:10:10 Venkat: What we recognised is that online affiliates marketers ..who
are trying to
20:10:31 Venkat: leverage web as a sales channel are still relying on brute
forces sales models
20:10:39 jim: Hi, Just interested in learning this topic
20:10:47 Richard Seltzer: Welcome, Jim. We just got started. Please introduce
yourself and let us know your interests and dive into the discussion.
20:11:06 Venkat: however, when we introduced our eMiniMalls service, using an
interactive model, the results turned out to be amazing
20:11:33 Richard Seltzer: Venkat -- I'm sorry, but the words you are using don't
mean anything to me. Can you simplify, please?
20:11:46 Venkat: Su, for merchandising to work, the marketer needs to fcus more
on the item rather than the "selller"
20:11:54 Richard Seltzer: What is "brute force sales model"? And what do you do
that's different?
20:12:04 sujamthe: Venkat, can you pl explain online impulse merchandising for
20:12:22 Richard Seltzer: Simply, what business is Chikita in? Do you sell
20:12:44 Richard Seltzer: What is "impulse merchandising"?
20:12:49 Venkat: Impulse merchandising is all about enticing the user with
interesting products, based on the context
20:13:14 Richard Seltzer: What's the basis of your business? Do you somehow have
lots of traffic -- people who are looking to buy certain kinds of goods?
20:13:22 Venkat: and using an interactive model to work with the consumer to
help find what he or he might be interested in
20:13:25 jim: Isn't impulse mechansing about arranging tempting items accessible
to users in a regular store, how does it apply online?
20:13:54 sujamthe: Venkat: Agreed, like the temptation isles of all stores,
loaded with magazines and candies
20:13:55 Richard Seltzer: Venkat -- I really am lost here. When I look at the
Chikita site, I see nothing but portal style lists of links, with no context
20:14:07 Venkat: Richard, our model is that we help nline affiliates access
thousands of onoline deals and promtions from name brand mercahtns and promote
those products
20:14:27 Richard Seltzer: Where would I see anything tempting at Chikita? And
how would I get there in the first place?
20:14:47 sujamthe: Do you offer a technology that allows ecommerce sites to make
this display of their catalogs real-time? Or I am just dreaming up something of
my own here?
20:15:00 Venkat: Any nloine publihser can joinn our netwrk and place our
eMiniMalls on their sites
20:15:34 sujamthe: so the minimalls is a hosted co-branded product off your
20:15:35 Venkat: It works similar to contextual advertising but instead of ads,
we display and promote products
20:15:44 Richard Seltzer: Apparently, then isn't the best place to
see what you do. Can you provide the URL of a site with one of your minimalls?
20:16:01 Venkat: As users click on those deals, the publisher earns revenue,
because we get paid by our merchant partners on a click basis
20:16:11 sujamthe: Venkat, now I get it. Interesting idea.
20:16:30 Venkat: Richard, you can see the eMiniMalls at:
20:16:39 Richard Seltzer: I'm slowing starting to see, I think. This sounds like
a second-generation affiliate thing.
20:16:49 sujamthe: Are these products that of other affiliates from your
network? Or they separate deals from branded product companies?
20:17:20 Venkat:
20:17:25 sujamthe: If its all your affiliate products, then its like a link
exhange from the 90s.
20:17:40 Richard Seltzer: do you mean that rather than sign up at dozens of
separate companies to be their affiliate, you sign up once at Chikita, and then
promoted items appropriate for particular pages at your site
20:17:57 Richard Seltzer: show up autotmatically (based on context) in your
20:18:39 Richard Seltzer: If it happens automatically, it's much beter than, and
more interesting than link exchanges. Is that the case?
20:19:01 Venkat: Yes Richard. We partnered with merchandise aggregators , so our
clients can access thousands of offers and promotions from our database
20:19:03 Richard Seltzer: Does the company signing up to have a minimall have to
pay a fee for it?
20:19:11 jim: Can you pl tell us what to look in this site
20:19:25 Venkat: No. it is free
20:20:20 Venkat: Jim: on that page look for the unit promoting nikon coopix
20:21:31 Richard Seltzer: Venkat -- please explain more regarding that sample
site. Yes, I see the Nikon product. but so what? what is the minimall?
20:21:53 Richard Seltzer: I'd like to see a full-blown minimall with multiple
products, if such exsits.
20:22:07 Richard Seltzer: Or do you only display one promotion at a time?
20:22:16 Venkat: Well, lets use the unit on our front page:
20:22:44 Richard Seltzer: What can I look to see the kinds of products that you
might promote at my site if I were to sign up? And can I block certain kinds of
20:22:46 Venkat: It is currently featuring the baby seat from Albee baby
20:23:11 sujamthe: I see it, the circuit city deal doesn't look like an ad, but
more like site content, but is from Chitika! Neat!
20:23:17 Venkat: If you compare this with a traditional online ad, you will
noticed several differences
20:23:27 Richard Seltzer: Venkat -- are you saying that you only run one
promotion at a time at each affiliate site? If so, why do you refer to this as a
20:23:34 Venkat: 1. It is desinged to place more emphasis on the product
20:24:11 Venkat: Clients to chose t set their eminimlass for a given product, or
a topic or choose to use the system in a contextual mode
20:24:25 Venkat: and then it will rotate through different products
20:24:34 Richard Seltzer: I don't see what you are talking about at
20:24:42 sujamthe: I thought Google took ad model one step forward with Adsense
because of this contexual placement from its network of Adsense customers. So,
though chitka is not called ad, how does it different for a site owner?
20:24:44 Richard Seltzer: I do see a blank space in the top middle of the page.
20:25:02 Venkat: Also, you will notice that unlike a regular ad, you can scroll
over the tabs in the middle t access a variety of infrmation
20:25:10 Richard Seltzer: Are you displaying content in flash??? or some other
technique that millioins of Web users typically turn off???
20:25:26 Venkat: It is javascript based
20:25:38 jim: Is Circuit city your customer? I am curious who pays Chika or is
it a rev share? With whom?
20:26:07 Richard Seltzer: The main reason I'm not understanding you point is
probably that I can't see the page the way you designed it. (Just like not being
able to click on the links at the bottom of the page). That looks like a serious
design flaw.
20:26:28 sujamthe: I agree the format is cool, has some slick programming,
20:26:29 Venkat: We struck deals with large scale merchant listing s aggregators
such as , and also directly with several merchants
20:26:40 Richard Seltzer: Venkat -- I can usually see javascript with my IE 6.0
browser. But I don't see this.
20:27:21 Venkat: Any time someone clicks on the merchant deals, we get paid for
the clicks and we pay ur client s(publishers) using the eminimalls on thier
20:27:42 Richard Seltzer: That's probably why the chikita page struck me as a
plain-old-fashioned Web portal -- all I see is lists of links.
20:27:45 Venkat: Richard can your try this
20:28:43 Richard Seltzer: Okay, there I see a Neiman Marcus offer. Why can I see
that, but cannot see the ad at chikita?
20:28:43 Venkat: Can you see the large banner unit at the top, (below the search
20:28:51 sujamthe: Richard. we saw "Nikon Coolpix P4 Review at CNET and on
clicking it we came to a new page that has a box showing a new Best Deal. It
doens't say Chitika anywhere. What do you see?
20:29:32 Venkat: Richard, now, if you mouse over the three tabs
20:29:49 Richard Seltzer: At Chikita I don't see any ad at all -- just lists of
links. And there's a blank area in the middle near the top.
20:30:23 sujamthe: The Raffaello Network deal is from Chitika, now i see your
trademark JS box :-)
20:30:30 Venkat: For some reason, your browser seems to be blocking the
eMiniMalls unit on our front page
20:30:31 Richard Seltzer: Yes, I see the effects as I move the mouse over the
tables at think2link
20:30:51 Venkat: Scroll over the search tab to access the search bx
20:31:07 Venkat: Now search for "ipod"
20:31:26 Venkat: Use the search box in the unit
20:31:52 Richard Seltzer: Interesting. (But I do wish I understood why I don't
see anything at Chikita.
20:32:13 Richard Seltzer: Welcome Jaks. Please introduce youself, let us know
your interests and dive in to the conversation.
20:32:19 jim: I have to leave, will come back and check transcript, bye folks
20:32:36 Richard Seltzer: I'm trying to undersatnd, for my own business, how
this might work.
20:32:58 Venkat: Not sure whats going on there Richard. Something to d with the
javascript i guess
20:33:10 Richard Seltzer: Is your eminimall setup compatible with Adsense? In
other words, would adding it to a page have any effect on Gooogle adsense
20:33:41 sujamthe: Venkat can you post a screenshot for Richard to see and
followup with him to see why its not working for him?
20:33:41 Richard Seltzer: Also, are any of you participating merchants in the
book publishing/selling business?
20:33:52 Venkat: Richard, lets say you have a website and you are already
monetizing the traffic to your site using traditional ad programs such as
Google, or other ad networks
20:34:22 sujamthe: Richard, thats my question too. It looks a lot like Adsense
from the concept, UI maybe different
20:34:26 Richard Seltzer: And can an affiliate (like me) choose to include or
exclude particular merchants and offers (for instance to avoid having ads for a
competitor appear on my site).
20:35:02 Venkat: Yes Su, it is similar to other online ads..but it iis mre
product oriented
20:35:06 Richard Seltzer: Yes, I use Adsense. I'd be interested in adding a
minimall thing if I understood it better.
20:35:12 Venkat: (sorry for the loose fingers)
20:35:16 Venkat: :)
20:35:35 Richard Seltzer: First, do you display only one promotion at a time?
And does that mean that the space taken up on the page remains constant?
20:35:59 Venkat: It works exactly like AdSense, but it will display products and
product deals
20:36:03 Richard Seltzer: And does the affiliate have any say over what
promotions appear?
20:36:26 Venkat: It will display one product at a time.
20:36:52 Richard Seltzer: One reason for the success of Adsense is that they
have hundreds of thousands (if not millions of participants. How many affiliates
do you have?
20:37:03 Venkat: It will rotate thru different products if you choose to, r if
you are interested in nly promoting one item, you can set the service to always
display the same item
20:37:20 Venkat: We have over 10,000 affiliates who already joined our network
20:37:37 Richard Seltzer: Like AdSense, does this mean I put code on every page
where I want this to appear?
20:37:50 Venkat: So, Richard you can chse t use this in the "selef service" mode
where you get thabe pick the items
20:38:09 Richard Seltzer: And does your software then determine what the context
is on each page and display a different offer on each page?
20:38:16 Venkat: or in the full service" mode, and our system will automatically
select matching products
20:38:49 Venkat: Advantage of using this in the "self service" mode is that it
can then be used along with AdSense
20:38:53 Richard Seltzer: FYI -- Adsense is often terrible about determining
context. At my site the ads are rarely appropriate/related.
20:39:08 Venkat: also you can get to only select and display the items of your
20:39:33 Richard Seltzer: Can I in self-service mode determine the overall
category of proeducts and then let your automation cycle through particular
products to display?
20:39:46 Venkat: We believe in giving the freedom of choice to the publisher
20:40:04 sujamthe: Adsense i supposed to find based on site content but goofs a
lot of times. How you do you find context?
20:40:13 Venkat: Yes. You and select a category
20:40:23 Richard Seltzer: Venkat -- interesting. You say that in self-service
mode it is compatible with Adsense. Does that mean that in the other mode it
20:41:13 Venkat: That si correct Richard. Google terms and conditions do nt
allow clients to use other contextual services
20:41:23 laks: I had not heard of chitika before this, I am curious to har of
teh 10,000 affiliates. What is their incentive
20:41:23 Richard Seltzer: Yes, how do you determine context? Some of my "pages"
are entire books (literally). Looking at the first paragraph won't tell you what
the page is about.
20:42:17 Richard Seltzer: I get about $300/month from Adsense. I have about 2000
pages (many book size). I get about 150,000 visitors/month.
20:42:29 Venkat: Incentive: An opportunity to supplement their current ad
revenue with revenue from merchandising revenue
20:42:54 Richard Seltzer: Is there any way to estimate what revenue I might get
from Chikita as an affiliate? (Presuming I go in self-service mode.
20:43:12 Venkat: Richard: With eMiniMalls you can continue to get your
$300/month and also earn additional revenue from our merchandising service
20:43:28 Richard Seltzer: Also, with self-service mode, do I put the same code
on every page?
20:43:52 Richard Seltzer: I'm trying to get a rough feel for what would be
reasonable to expect in additional revenue.
20:43:52 Venkat: That way you will be able to diversify and maximize your
revenue streams
20:45:21 Richard Seltzer: Do you pay on a basis similar to Adsense? (Monthly,
with a month delay?)
20:45:30 Venkat: It depends. We noticed that merchandising services like our
eMiniMalls will work best on sites with content related to products, product
reviews etc
20:46:00 Richard Seltzer: Venkat -- do you have publishers and booksellers among
your merchants?
20:46:17 Richard Seltzer: Much of my content deals with books and publishing.
20:46:27 Venkat: Payment model is very simialr to AdSense. Every click will earn
you revenue. You will get paid on a monthly basis
20:46:33 Richard Seltzer: Also is your code compatible with a WordPress blog?
20:46:52 Venkat: Yes. In fact we also have a word press pluggin
20:47:28 Richard Seltzer: I might also be interested in using your service as an
advertising medium. I publish books on CD and DVD.
20:47:59 Richard Seltzer: I've used Google Adwords, but it hasn't worked very
well for me.
20:48:13 Venkat: Essentially, we are leveraging the modle that worked well for
online advertising, adn we are now making it work for merchandiising
20:48:40 Richard Seltzer: What are your rates? Is this a space in which a small
cmpany can play (like Adwords)? Or is there a significant fixed cost?
20:49:07 Venkat: You can continue to use AdSense and also take our service out
for a spin and see if that works out for you
20:49:50 Richard Seltzer: My main problem will be trying to read content at the
Chikita site so I can learn the details, sign up etc.
20:49:54 Venkat: Richard, at this point we are only partnering with large scale
aggregators such as, Pricerunner etc
20:50:05 Richard Seltzer: is there some setting I should check in my IE browser?
20:50:11 Venkat: IN thew future we also want to offer this to individual sellers
20:50:17 Richard Seltzer: Or should I try a different browser, like Firefox?
20:50:35 Venkat: Can you try Firefox?
20:51:06 sujamthe: You have large affiliates 10K of them?
20:51:12 Richard Seltzer: I don't have Firefox right now. (I didn't have any use
for it, so I deleted it. But I can reinstall it easily and give it a try.
20:51:20 Venkat: Yes Su
20:51:57 Venkat: We launched the service late summer last year.
20:52:05 Richard Seltzer: I don't recall if you answered earlier -- do you have
publishers/booksellers among your merchandisers?
20:52:15 sujamthe: thats very impressive
20:52:40 Venkat: Richard can you please try this link:
20:53:03 Richard Seltzer: Suggestion -- it would be good to have a clear-text
explanation of your business model on your home page, with links for details, to
help people like me undestand the oppportunity.
20:53:36 Venkat: Absolutely. We are soon going to update our website
20:54:18 Richard Seltzer: Okay, at that url, I see an Amazon ad. So Amazon is
one of your partners. Anybody else in the publishing/bookselling busienss?
20:54:23 Venkat: Right now, we don't have books in our database. We are working
on launching a special eMiniMalls units specifically for books category
20:54:50 Richard Seltzer: Also, if I were to self-serve Amazon as an advertiser,
would the same Amazon offer appear on every one of my pages?
20:55:37 Richard Seltzer: That's unfortunate (that you don't have books yet).
20:55:37 Venkat: Here's the link to see all categories:
20:55:56 Richard Seltzer: So amazon ads would come up for all kinds of things
unrelated to my context...
20:56:17 Venkat: It will depend on the selected keyword
20:56:39 Richard Seltzer: In any chase, I definitely want to give this a try.
Thanks for your patience and your explanations.
20:57:06 Richard Seltzer: We're getting close to the end of the hour. All,
please post here your email addresses and URLs, so we can stay in touch.
20:57:41 Venkat: Not at all Richard. We are specially focusing on online
merchandising and we are working on bringing to the market, such interactive
services that will help online affiliate marketers
20:57:52 Richard Seltzer: I'll capture the raw transcript of this conversation,
and as soon as time allows, I'll edit it to more readable form and post it on
the Web so others can benefit from the info.
20:58:18 Venkat: Thanks Richard. It's a pleasure
20:58:21 sujamthe: Thanks Venkat
20:58:26 Venkat: Thanks Su.
20:58:52 Richard Seltzer: Thanks Venkat, and Jim and Laks and Su.


Anonymous Richard Seltzer said...

Was looking at Chikita not Chitika all along during the chat!

Now all set. Intrigued, trying Chitika on my site

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