Mobile Applications Advertising platform: not approved by advertisers to burn money to the developer

Many plugins are small and need mobile apps advertising platform This matchmaker will match the right advertisers and app developers to "speed up".

At present, mobile application AD eco-chain practitioners do not really make money, we earned and spent, just VC investment money.

Mobile application advertising platform If the lack of core platform, both ends of the pressure, the role will be gradually replaced.

Anyone who pays attention to the development of mobile internet can feel the madness of the developers in the past year, every developer salon is packed with rushed developers trying to get a slice of the platform from Android and iOS, but in the face of a messy Android platform industry, developers are hard to win and make a profit.

With the advent of Third-party mobile apps (app) advertising platforms, developers can be said to have temporarily seen the dawn of profitability. In order to get the right advertisers and application developers to "speed up", in order to win this war, mobile application advertising platform to do their best to open an atypical ecological chain competition.

AdMob-style "matchmaker"

In the last year, mobile application advertising platform has become a blue ocean for many entrepreneurs to enter. The newly created Third-party mobile application advertising platform has emerged, for example, the Union, there are meters, and the original focus on internet marketing companies, but also "translation" to develop mobile application advertising platform, such as pointing; In addition, some application stores are also trying to enter the field, such as the application of the recent announcement of the launch of mobile applications advertising platform "fish."

Mobile application advertising platform to do, by pulling the upstream advertisers resources, and downstream developers, the advertising SDK (software Development kit) embedded in the mobile phone application terminal program, so as to achieve advertising in mobile applications terminal, and the flow of developers into advertising revenue, to ease the urgency of developers profitability. In this industrial ecological chain, mobile application advertising platform has actually played a go-between "matchmaker" role, so that the appropriate advertisers and application developers "speed".

The forerunners of this model can be traced back to the founding of AdMob in the United States in 2004. However, there is a dispute over the AdMob model in the market.

Rochuan, chief executive of the application, said to the South reporters, AdMob began to move the application of mobile advertising into the lower-value advertising alliance model of the Network, is an extensive development. He believes that the current entrants simply assess the value of advertising from the flow, but simply display and inform, and do not adequately provide accurate advertising to bring the media value and brand promotion.

Analysys analyst Zhang Yi the opposite view. He told reporters that China's entrants are currently mainly affected by the network, mobile payments and other infrastructure, it appears that the form of advertising and the relatively single launch. The introduction of future lbs, two-dimensional code and other technologies will make the mobile advertising form more diversified.

But from the current situation, the industry has been rumored to have a leading mobile applications through the AdMob platform to earn tens of millions of annual income, the situation is excellent. The followers of AdMob still have the value of being.

Donshau, managing director of Qiming Ventures, said in an interview with South reporters that mobile applications in the future development of two possibilities: a large number of plug-ins have developed into a strong media, in advertising revenue has a greater right to speak; many plug-ins are very small, there is no way to control the market, the need for mobile applications advertising platform to integrate resources, Therefore, mobile application advertising platform can make the industrial chain ecological health.

Advertisements are also cautious

From the mode view, the current mobile application advertising platform model is not the same, not beyond the AdMob form.

Because the quality of the same, the parties can only spell, which doomed the competition will be very fierce. Advertisers and High-quality Mobile application resources, will directly affect the development of mobile application advertising platform, so each mobile application advertising platform is expected to be able to master as much as possible resources downstream. From the current situation, mobile application advertising platform at both ends of the expansion, are facing a small challenge.

First, advertisers have not yet recognized the value of mobile apps advertising. "Currently mobile applications of CPM (per thousand cost) is generally only 10 yuan, while in the traditional Internet CPM value is generally at 50-200 yuan, mobile applications advertising at least to show the value of this flat." "Rochuan said.

The composition of The Advertiser also reflects the maturity of the media. Click on mobile applications, we see the most banner ads are related to mobile applications recommended. Real estate, finance, 3C appliances and consumer goods have traditionally been the bulk of the traditional internet-hit ads, but they are still relatively cautious about mobile applications.

COO Zhang He said that at present, the alliance's advertisers in the industry customers (mobile application industry) high more than 70% market share, brand customers up to 20% of the share. Zhang He to South reporters stressed that this is not only the status of the Union, the entire industry is the same.

Advertisers are hard to find, and high quality mobile apps are not easily available. Developers tend to worry about impacting the user experience at a time when they accumulate user capacity. To find a balance between user experience and profitability, they are also very cautious about advertising.

For example, the financial application of digging money has nearly 5 million users, but the chief operating Officer Quanyun refused the mobile application advertising platform invitation, that only when the money to achieve tens user accumulation, will consider the introduction of advertising profit model.

For example, the interactive application of new Media Street fun now has more than 40,000 users, a few days ago with a mobile advertising platform to achieve cooperation. But general manager Yang Zhibin reporters that the street is one of the business is interactive way to provide users with preferential information, because the cooperation of advertising information just can enrich the content of street fun, so only consider working with the advertising platform, not for profit considerations. Future street interest will never be considered profitable through advertising mode.

Tangled in a yell and settlement

In the fierce scramble for high quality mobile applications, each mobile application advertising platform has a magic weapon, "burning money" paving the road. In addition to the traditional 37-share business model of the App Store (70% for developers), the mobile apps advertising platform also draws on its own profits to attract more good apps and recruit developers.

The alliance, for example, encourages developers to use the multi-Union SDK, adding 40% to their original revenue base. Assuming that an application earns 100 yuan a day, the alliance will give an additional 40 yuan reward, developers can also be mentioned at any time.

Another example is the continuous introduction of the incentive policy. In the early stage of the launch of three times times into the award, that is, advertisers put 100 yuan ads, in the promotion period, developers actually get 300 yuan. Now plans to launch the invitation after the Spring Festival, developers can be invited to the developer's income from the additional commission.

In addition, because the current advertisers mainly in the industry customers, they put ads more for the purpose of download and promotion needs. At present, mobile application advertising platform generally according to the CPA (cost per operation) access to advertisers, but with the CPC (per click Cost) to pay developers. For example, a mobile application, 30 CPC in exchange for a CPA, and the CPC cost assumption is 0.2 yuan, the CPA's unit price of 2 yuan, then actually cost to pay 6 yuan, and income only 2 yuan, the middle of the loss, the advertising platform to bear.

Rice director Yang Panwai to the South reporters that the settlement model is a problem, the result may be part of the developer profit, but the advertising platform can not make money failure.

The industry generally believe that the current mobile application advertising eco-chain practitioners do not really make money, we earn and spend out of the money, just VC investment.

Donshau does not deny that. He told reporters in the south that the new Internet model, the beginning must be the need to burn money to build the company platform, the market. In the future when mobile application advertising platform traffic more and more, brand customers will naturally move advertising costs to mobile applications. He believes that as long as the Android platform can maintain a rapid growth rate, the future will be able to achieve three win.

There are also developers who hold the opposite view that mobile apps will sooner or later be compressed. Yang Zhibin that the development of the Internet can be discerned. He said that the Advertising Alliance platform model, is generally Baidu, Taobao and other internet giants adopted, they can advertise in this mode is the premise of the core platform. He believes that if the mobile app ad platform lacks the core platform, the two sides will not be able to hold on, the role is gradually replaced.

The establishment of a year, the alliance has won the red Dot investment and qiming venture capital of two rounds of financing. As of October 2011, the Multi-League day coverage of more than 12 million users, such growth rate is a mobile application advertising platform in the industry, a "fast horse."

However, to become a "leader", COO Zhang He believes that to quickly complete the market resource card and support the industrial chain, we see the "balance" of the alliance is inclined to the mobile application terminal accumulation, at the expense of their own profits to subsidize developers.

(Responsible editor: Lu Guang)