India serves as a benchmark for improving our products: Hybrid’s Sergei Kovalev

Hybrid is an ad tech company established over a decade ago, making significant strides worldwide. With a workforce of around 500, they have become a formidable force in the ad tech space. Hybrid’s Sergei Kovalev is no stranger to India. He was in the country when Hybrid opened its first official space in Gurugram in 2022. In an earlier interaction with Adgully, Kovalev has spoken about cookieless future, India plans, the future of ad-tech, and more.

In this conversation with Adgully, Sergei Kovalev, Chief Commercial Officer and Co-Founder of Hybrid, shares valuable insights on Hybrid’s journey in India, engaging with customers, the go-to-market strategy, emergence of newer technologies like AI and ML and their impact, and much more.

What led to the launch of Hybrid 12 years ago, and what gaps did you see not only in Russia but across the world?

Hybrid is a product designed to effectively reach and engage audiences. Finding the right audience entails creating advertising that is both relevant and non-intrusive, which can be challenging. Traditional methods often struggle to connect with interested individuals without causing annoyance.

Google, while being a major player in the advertising space, often lacks substantial client support. To address these challenges, we focused on creating innovative products, particularly in the realms of education and skill development. Our goal is to help individuals and businesses navigate the complexities of modern advertising technology, ensuring they can reach their target audiences more effectively.

How difficult was it to find the right customers during the initial period of Hybrid?

Whenever we engage with customers, we focus on understanding their needs rather than just offering ready-made products. It’s not about simply handing over our solutions and expecting them to use them as they are. Instead, we work to understand our clients’ unique requirements and tailor our offerings accordingly. This often involves developing strategies, fostering collaborations, and forming partnerships to ensure we provide the most effective solutions for their specific needs.

Could you tell us about the initial years, the team size, etc.?

Hybrid was launched 12 years ago with a very small team of only five people. Four team members focused on creating the product, while one concentrated on selling it. From the very beginning, our approach was hands-on and focused. For our first client, we developed a vertical solution specifically for the automotive industry. It was straightforward: we targeted individuals looking to buy a car. By tracking activities like seeking auto credit, auto insurance, or researching models, we could identify potential buyers ready to make a purchase.

Additionally, we organised our first auto event 12 years ago. Although we were too small to attract big brands from the auto industry, we invited local dealers. These dealers promoted their centers, which generated our first revenue. We reinvested this revenue into product development, allowing us to start growing.

What strategies did you implement to overcome the challenges and ensure rapid growth while building a cohesive team in such a competitive market environment?

Our main goal was to grow rapidly in the initial stages, which required significant funding. To secure this, we needed to enter the market, find our clients, and deliver the best possible solutions. Building a cohesive team was another major challenge, as we needed people who shared our vision and supported each other through difficult times. The market was highly competitive, and our competitors often tried to undermine us by spreading negative rumours. However, through our performance, we managed to survive and even thrive on a national level.

Did you face any initial hurdles or hiccups when presenting your proposition to clients?

Immediate acceptance was rare. In the early days, terms like DMP, DSP, SSP, and LTP auctions were unfamiliar to most people. Educating the market was a big mission for us, especially with limited funds. Despite the challenges, we achieved better results than if we had been immediately accepted. It was a significant step forward for the entire programmatic advertising industry.

You are present in almost 12 markets. What is your go-to-market strategy, and how do you approach each market?

We developed our strategy after establishing four or five different offices. In every country, we need a strong team to support sales, client service, and publisher relationships. Our approach varies by market. For example, in Latin America, we start with the publisher side, while in other regions, we might begin with sales or product alignment. Each market requires a tailored strategy, but building a strong team is always our first step.

You’ve been in India for almost three years now. How has the growth been?

We’ve seen significant growth, more than doubling each year. We’re now preparing for the festive season with a strong team and planning for the next year.

What challenges are you facing in India, and what areas do you think need improvement?

We face numerous challenges, such as the need for high-speed communication with clients. If we don’t act quickly, competitors might capture our clients’ budgets. Additionally, India is a vast country with regional differences, requiring varied approaches in the north, south, west, and east.

Are you looking to visit other markets like Bengaluru and Kolkata?

Yes, I’m planning to visit Bengaluru and Kolkata. Bengaluru is a beautiful city, and Kolkata, with its mix of old and modern India, is an emerging market. Educating these markets as they transition from print to digital is a slow process that requires patience.

How have AI and ML contributed to Hybrid’s success, and how do you see them shaping the future?

AI and ML are becoming increasingly sophisticated, enabling us to analyse client behaviour more precisely and quickly. This helps us make better decisions in milliseconds, which is crucial for effective advertising. AI and ML will continue to enhance our capabilities in targeting and prediction.

What emerging technologies do you see playing a major role in digital advertising, and how is Hybrid adapting?

Video advertising is crucial as more content moves from TV to digital. We are expanding our video inventory and improving measurement and productivity. We are also incorporating social media into our strategy and exploring advertising in the metaverse to reach younger audiences.

What are Hybrid’s plans and strategies for growth in India and Southeast Asia?

India is a fast-growing market and serves as a benchmark for improving our products. We’re focusing on collaborating with mid-sized players to provide better data, inventory, measurements, and technology to our clients.

How do you prioritize areas for product development within Hybrid’s suite of solutions?

Our priorities come from client feedback via our sales department. For example, we’re focusing on expanding our CTV inventory because it’s in high demand. We need additional servers and development to support this growth.

Which has been your toughest market so far?

Each market presents unique challenges and insights, so it’s difficult to single out one as the toughest.

How do you share best practices and case studies across different markets?

We share global solutions with our clients, but each implementation is tailored to the local market. Even in terms of creatives and optimization, we adapt to local preferences and requirements. India has provided many case studies that we share worldwide.