POIdo – Russia’s First LBA Platform
Startups all around the world are staking their territory in the location land rush, and Moscow-based POIdo is no exception. Launched in March 2010 by serial entrepreneur Nick Mikhailovsky, POIdo is Russia’s first location-based advertisement (LBA) platform.
POIdo makes it possible for developers to monetize mobile and browser-based applications and enables advertisers to geo-target ads. This sounds very similar to other LBA platforms, but what makes POIdo different is its approach to targeting. In addition to the user’s location, the system takes into account their behavior in the context of the application in which the ad is shown. Just like AdWords, POIdo employs the bidding model in which advertisers compete for visibility in a specific location. Today advertisers are charged on CPA (cost-per-action) basis, but other models are coming soon.
According to Nick, the company has over 20 commercial customers and over 1,000 paid POIs in the Moscow area. On a daily basis POIdo serves between 50,000 and 100,000 ad-impressions across their publisher network. This is a good start considering that the company was launched only couple of months ago.
Personally, I think this is a tough model that requires a large distribution in order to attract a critical mass of advertisers. On the other hand, companies like Placecast were able to make this model work in the US. Besides, the the timing for LBA platforms could not be better. I will be curious to see how POIdo does in the Russian market and whether they move fast enough to create a market for themselves before Yandex moves in.