November 21 News, the hot mobile internet to attract more and more internet entrepreneurs, but the noise behind the market is showing industry chaos. With the increase of product promotion and revenue pressure, the mobile internet channel, Advertising Alliance and Promotion Alliance came into being, making the mobile internet market full of rubbish, yellow and dark deduction fee application.
Practitioners Syed to Tencent technology that many small and medium-sized developers in order to gain short-term benefits regardless of user experience and product quality, rapid generation of large number of garbage applications and embedded in the SDK ads uploaded to the various download channels to promote money, and even more money piracy than genuine.
Syed pointed out that the entire industrial chain began to form a serial set, each download platform to the developers to collect promotional fees or advertising fees, developers through the built-in mobile ads to promote each other to make money, basically who has users who have money.
The developer and the Advertising Alliance align Money
The popularity of China's iOS and Android, which is popular with developers, is almost synonymous with the mobile Internet, particularly the Android system, which has a high degree of openness and a large number of application developers. However, the free habits and software development environment that have been cultivated in the internet age have made mobile internet entrepreneurs face a helpless dilemma, and developers cannot rely on traditional software sales to gain return on investment due to the lack of users ' willingness to pay and the rampant and competitive environment of pirated software. Users are generally able to accept a mobile online payment, or pay to watch online literature, but rarely willing to pay for the software used.
Even the App store, which has a successful business model, is losing money to developers because of the rampant black card. Recently, there is news that the App Store has stopped offering service to the itunes account for an unbound credit card, but some insiders point out that Apple's move could help boost 91 of mobile-phone-aid pirates in China, where there are users who can make money by piracy.
In the absence of capital favor, or a tightening of funds, the developers how to save themselves has become a big problem. According to the industry, Zhang Translation revealed that there are two main types of developers, one is completely dependent on VC funds to maintain team development and product promotion. Another kind of developers because of the lack of technology and funds, often rely on batch generation of garbage applications and embedded ads, put on various online channels to induce users to click to generate revenue.
The following image is from the Android Market to download the "actress repeatedly" application, developers will pack a few beautiful pictures into a rough mobile phone application, and join the multi-League SDK ads, by showing or guiding users to click on the century-edge ads can gain, if users do not click on ads can not browse more pictures, However, such applications are almost everywhere in the major application markets.
The following figure provides an advertising quote for a mobile ad consortium, advertising platforms provide developers with a variety of revenue models, so that a large number of developers in order to make money can not care how the product is done, they even by simply put e-books, beauty pictures, and even yellow content quickly packaged into a mobile phone application and add ads, Can upload to the major download channels.
Introduction, such applications, a developer can make hundreds in one day, according to the thousands of AD league display calculation, the 100 applications as long as the download 100 times, can be displayed at least 10,000 times, access to 80 yuan income, if you click on the download can even get 5 yuan/time of return, this ad overlapping revenue is very substantial.
There are some txt e-books that can be easily read by readers, developers have to make every ebook into a software, embedded ads to increase revenue, resulting in the current channel flooded with a lot of garbage, yellow-related applications, the current advertising alliance is divided into 3:7, of which the advertising league accounted for 30%, 70% for developers.
According to Zhang's interpretation, 30% of the proportion is difficult to maintain the advertising Alliance development, sales, operations team, Advertising Alliance is only now in order to nurture the market to the majority of the profits to developers, and a large number of embedded in the application of the SDK can be in the short term to aggregate the application of advertisers, and through CPC/CPA and other means It is also because of the existence of the advertising Federation, a large number of developers are happy that the development of garbage software to seek short-term benefits as a guarantee of life.
Application Download channel as the biggest beneficiary
In this industry chain also has a key link is the channel, these applications obtain the user's important source. channels, including download channels and built-in channels, operators built channels, mainly to earn money from developers, by selling ads and CPA revenue is huge. The current iOS built-in activation price increases to 5-7 yuan/user, Android is at 1-3 Yuan, Symbian is less than 1.5 yuan.
Domestic Application Download Platform status (Tencent Science and technology with map)
According to Baidu Mobile Q3 Internet Development Trend Report statistics, the current application download platform in the highest growth rate of software download platform two are domestic brands 91 mobile phone assistants and Android Market, 91 mobile phone assistants also include the Android Market.
For the Android channel, activate a user to give 1-3 yuan of money, if an application to increase 10 million users and the use of paid promotion, per user 2 yuan, then in the case of no money to spend the first 20 million promotion fee, This is a lot of concentration to do products but no source of funding developers is a great burden, the following figure is an Android application market advertising prices, if the promotion of one months, developers will pay hundreds of thousands of yuan advertising fees.
Android Channel Meter (Tencent technology map)
So what caused such a high advertising fee? Although it takes several dollars to get a user, the investment proceeds from developers are much more than these promotional fees, Zhang said. If the developer has 10 million users, the estimate can be far more than the 20 million advertising costs of the promotion. Because of the user volume and VC value linked, so developers are willing to quickly get users shortcuts.
In addition, some of the electrical business to enter also pushed up the promotion costs, like every customer, Lok Tao can withstand than the general developer higher promotion fee, they are not in order to develop software, but in order to increase the number of sales, profit model is clear, more regardless of cost to promote. According to the industry, according to the current cost of promotion, several large-scale application of download channels to promote the annual income of up to tens of millions of yuan, in such a chaotic development environment, the application of the download channel has become the biggest beneficiary.
Really valuable app less than 20%
Domestic handset operating system share (Tencent Science and Technology match map)
The latest survey data show that the end of this quarter Android phone sales accounted for 58% of the smartphone market. Symbian's share of the operating system has fallen from 48% to 23% since the 1th quarter.
This has led to a growing influx of developers into the Android platform, which has also made Android distribution channels more important, and some of the yellow, dark, and vicious-induced product promotions are no doubt damaging these distribution channels, says developer Ai, who is now a mixed-bag, truly valuable app with less than 20%.
As the connecting user's firewall, each big downloading channel and the security detection platform all shoulder the important responsibility.
China's current well-known security testing platform, including QQ Security, 360, safety housekeeper, etc., but because the program batch testing requires 7 days to return to the test report, a new on-line application if the manual audit is not strict, it is possible to find the problem after 7 days, at this time may have a large number of users to download the use of, and even caused losses.
The following diagram is the flowchart for applying auditing:
At present, the domestic application download market at least 100, one access to security detection of less than 20, even if the access to security testing is also widespread audit lax situation, according to AI, the current audit is the most stringent Android market and application sinks, many with advertising or poor quality applications are unable to shelves, The Android Market includes more marginal apps.
Developer AI, Tencent Technology, says investors, entrepreneurs, channels and advertising alliances, users of the industry chain, users seem to enjoy the free service, but the most hurt is the users themselves, it is because users do not want to pay, the developers so dependent on the advertising Alliance, the deviant developers for advertising money, Every day to develop a lot of garbage applications. Abnormal ecological environment and the vicious competition between the same products, so that developers can not make good products, are thinking of speculative ways to make money, and ultimately hurt the mobile internet industry itself.
Short-term channel for King giant influx to accelerate industry shuffle
According to Zhaoxue, the channel Distributor, the mobile Internet is the early stage of development, all mobile applications have no users, this makes the channel for the King, the control channel can not only make money for developers, but also to ensure that in the late competition is not exclusive, so that their products are recommended, this is also a grand investment Android, net Dragon and 360 cooperation, The important reason for Tencent to push the Application Center.
Zhaoxue points out that Tencent, for example, has a lot of wireless products, and if the channels are accounted for by 360, it could be difficult for the entire wireless product department. Tencent is now on a massive scale in all channels to pay for promotion, despite one months of expensive promotional costs, but can be very good to gather the various channels of users, and then cross marketing in the product, and even all the users through the cross marketing to the QQ Application Center, through the early dispersion of products in the later integration, the final polymerization channels.
Again, such as 360 in the security field has a strong brand advantage, 360 of mobile phone guardian users can not be overlooked. 360 through the PC side of the push advantage, first from the PC side to occupy the helper products users, such as a sufficient number of users, and then through the PC to push the end of the phone,
360 also has potential in terms of channels.
Google Android device activation Total has reached 200 million (Tencent science and technology with map)
Another concern is Google. Previously, Google has revealed that the Android harsh application number of more than 200,000, the application of installation reached 4.5 billion times, and recently disclosed that Android device activation Total has reached 200 million, and Apple has previously released the total amount of iOS device activation of 250 million data is not far.
Although Google stores in terms of speed, experience, content and so on are not as good as the domestic third-party application market. But Google's acquisition of Moto can be seen, Google is trying to strengthen the hardware and software control power, occupy the system advantage of Google must not be overlooked. Zhaoxue that Apple does not have competitors in this area, its own production of hardware, operating channels, control payments, can effectively control the quality of software.
Affected by the financial crisis, the domestic mobile Internet environment is inevitably affected, many developers do not have the source of income, resulting in the promotion of the cost of the cut, the channel input. Zhaoxue that next year is likely to be the developer's winter, but the influx of major giants is bound to accelerate the transfer of channel dominance and change in pattern. "In the long run, the small and medium mobile internet channels will eventually become a tool-type application, it is difficult to escape the dilemma of washing white." ”