Xiangru: The inflection point of Internet advertisement

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"Network Advertising market Potential Unlimited"

With the rapid development of Internet, China's e-commerce into a rapid growth period, the network advertising market is also facing good opportunities. Multi-information shows that the next 3 years China's network advertising market is expected to continue to develop rapidly. Today, the search engine's advertising value is gradually widely recognized, from Google's success, to Baidu's myth, and then to the Chinese search engine market rapid growth, all the real explanation, search engine marketing is a very high return on investment marketing channels. Search engine is not only internet companies to promote the site of the tool, but also the most cost-effective traditional enterprises sales channels. A search engine in the search results of a keyword ranking, can bring a steady stream of visitors to a website and users; an effective search engine advertising, can bring the enterprise dozens of millions of orders; a reasonable search engine marketing plan, may give a company to take off opportunities. Baidu as the representative of the general search engine network advertising, gongs and drums network commercial search brand booth network advertising has gradually become accepted by the vast number of traditional enterprise users of the network advertising another major form.

Chinese Internet users are a potentially huge market, the analysis of the user audience of the Internet is a very important factor in capturing the market, locating the service group, focusing on serving a certain field, using the technology advantage, helping the broad Internet advertiser to improve and upgrade its business situation, and to help it gain better business value. Is the fundamental to win the market.

Business, will certainly spend the least money to get the biggest benefit, with the development of E-commerce, many business operators have targeted a new advertising platform-network advertising, but in the actual choice, because faced with many choices, it is difficult to choose. Industry insiders believe that the network advertising coverage, you can put the advertising information 24-hour uninterrupted transmission, not subject to geographical and time constraints, but also has the monitoring, can be evaluated, can be optimized and so on, it will be many advertisers of all ages, including traditional industries. More attractive to many SME owners, with the help of the network platform, will undoubtedly significantly reduce the cost of advertising.

"Development" inflection point "highlights"

But we also need to see that there are many hidden dangers behind the huge market potential. Sina's soft text ads for example, tens of thousands of yuan of advertising costs and millions of people traffic looks "value for money", but the real click on the ads and how many? I'm afraid it's hard to give a clear answer. Speaking of the advantages of Internet advertising, we are not difficult to enumerate: interactive, global, direct, all-weather, high efficiency, low cost, convenience and so on. And the virtual nature of the network itself, but also like an irregular bomb, so that the public on the credibility of the information questioned.

The development trend of Chinese market network advertisement is the world attention. According to Iresearch's research, 2005 China's network advertising market size of 3.13 billion yuan, a 77.1% increase from 2004, is 7.6 times times 2001, close to broadcast advertising (3.4 billion), and for the first time over the magazine ads (1.8 billion yuan), into the mainstream advertising media ranks. Eric Market research predicts that China's online advertising market will reach 4.6 billion yuan in 2006, and that number will expand to 15.7 billion yuan by 2010. This rapid pace of development, even the Western developed countries can not.

China's online advertising market is in a period of rapid growth. In Sina's annual asset report, it can be seen that online advertising accounted for the net revenue for the year to 50%, in the total annual income of Sohu, internet advertising accounted for 70%. Internet advertising has grown rapidly as government and mobile operators have tightened their wireless value-added services and the wireless business has declined.

Chinese Internet users have reached 137 million, netizens browse news online, use search engines, send and receive emails, play video games, shop online, read and write blogs, live chat, and so on, create huge space for advertising, and even begin to erode traditional media advertising. Under this theme, the "inflection point" of internet advertising is also gradually appearing.

"The three major drawbacks of traditional network advertising"

False information to discourage customers

"The phenomenon of malicious clicks scared back the advertising budget on the tight small advertisers." Said Ranking, vice president of Eric. "There is no industry-recognized standard for such issues as malicious clicks, and each website, consultancy, and advertising agency has a different definition." ”

Internet industry insiders also believe that if advertisers can be a reliable and unified way to measure Internet advertising audience, then the network advertising revenue can reach a higher level. Market research companies say that many big advertisers are at a respectful distance from online advertising, mainly because of the confusion in the way audiences are evaluated.

According to the US market consulting firm Click Forensics Survey: In the second quarter of 2006, search engine advertising Overall click fraud rate is 14.1%. In China, according to Analysys International Survey of 2000 domestic network advertisers, about one-third of advertisers think they are the victims of click fraud.

Because lacks the third party to the website real statistical analysis data, The Advertiser often uses one set of own analysis system to monitor and analyzes the network advertisement effect, "the malicious click is more apt to happen in the banner advertisement and the keyword advertisement." "LSI's U.S. headquarters and branch of the network ads are monitored by user behavior and promotion of the effect of the Omniture company responsible for monitoring." LSI through omniture data, management information, you can quickly understand the customer feedback on the product, how many customers have visited the online advertising product information on the purchase of products, as well as access to customer interactive online response.

Second, "unspoken rules" to create astronomical prices

At ordinary times in the mall will see a variety of discounted information, ranging from 10 percent to 80 percent, in fact, network advertising is the case, many of the site's advertising case prices have "unspoken rules", the general network of ads in the case of the price will be set high, but to the end is nothing but two solutions:

1, the final transaction price is very big discount: 10 percent, 20 percent is normal

2, discount play not much ruthless or maintain the original price, give advertising or advertising time

Because many well-known websites of the network advertising location by region or by channel to find agents, this adds a sales link, the agent will certainly add how much profit to add how much profit up, so virtually all raise the price of online advertising; there are many sites in order to enhance the enthusiasm of the sales team, gave a sales commission of more than 20%, Some even gave 50% as a performance commission, in fact, wool in sheep, is not in the price of customers to raise prices.

It's like the robber robbed you of 100 bucks and then returned you 10 bucks and you thanked him. Under such circumstances, the "bubble" layer accumulates, "moisture" superimposed. Astronomical prices also arise in this case.

Iii. lack of supervision breeds fraudulent breeding grounds

Internet advertising fraud is not a new thing, in fact, the Internet has become a very direct and effective advertising media, but also to breed "click fraud" hotbed. Especially when the basis of Pay-per-click to become the mainstream of advertising operations, fraud ads more "duck in the Way". Baidu, Yahoo, Google and other large network companies have been because of malicious clicks or false traffic and other issues have been sued by users.

and the network advertising fraud and "clicks cheat" the way is also constantly "upgrade." The traditional employment of cheap labor "tactics" has evolved to be able to automatically perform a series of loop clicks, page refresh operation of the script program, such "Robot" software program concealment and technical content has become more and more difficult to identify and prevent. Only two Third-party traffic sites and other data can be compared to analyze the actual flow. On the one hand, the credibility of the site itself suffered losses, on the other hand also caused the customer's distrust of the site.

Opportunity and challenge coexist, development and change keep abreast of. The current situation of the network advertisement market causes the industry to change, but changes in the change, not only will change the original pattern and the pattern, but also will have the far-reaching influence to the future. From the perspective of a big development process, we can calibrate this kind of transformation as the turning point of the network advertisement market entering the full maturity.

"New model triggers industry change"

Alibaba Group announces its official launch of its online advertising trading platform Ali mother. Following Alibaba, Taobao, Alipay, Ali Software, this is known as Ma and Alibaba Group set another first. Only low-key online hundred days, Ali mother has become China's largest network advertising platform, won hundreds of thousands of owners of the fans. Compared to Alibaba in Business-to-business E-commerce in the field of adherence and waiting, Taobao on the mode of exploration and market overall cultivation, Ali mother just set up a few months to do first, seems to be unprecedented relaxed. But in essence, still because it conforms to the whole network advertisement development trend. In the chaos of integration, such a development model for the standardization of the development of the industry has a role that can not be underestimated. Its spectacular growth in the short term is a harbinger of a home-grown, innovative Internet advertising service model that will have far-reaching implications for China and the world's internet industry.

One thing must be put forward Ali Mother's birth is an absolutely good time, now China's netizens 3 people have a webmaster, this is no doubt the truth. China's small webmaster, their technology and the ability to manage the site far less than professional website. But they also want to survive, day-to-day management can not be said to let the computer open the Air bar, the server is always free of it. Even so, the small webmaster's belly is still hungry. At this time there was a "fashion mom", holding "a recommended registration ￥20" Delicious bento, small webmaster How will not be put to the "mother" embrace.

Ali mother's appearance, has the unique condition, in her behind, is "Ali father" the full support. Show her from the first appearance has a strong reputation system and strong ability to pay. Third party means of payment: Alipay. Such webmaster can be directly present, fast and convenient, no worries. At the same time the trading platform is also very simple, interactive very strong. The statistical system is clear and there are a wide range of advertising. Plus the recommendation of 1 registered to Ali mother will be 20 yuan of super publicity efforts. Strong backstage, convenient trading platform, strong publicity and reliable trading media created the network advertising "fashion mom." It can be foreseen that her appearance will play the role of "housekeeper" of the network advertisement, and monopolize the advertising position of the small and medium-sized websites. This kind of pattern, in the network advertisement development will more and more appear, causes "the inflection point" the appearance.

"International Home Network to establish the industry benchmark"

One, 360° interactive lead the trend

The internet provides a platform to express the rich network advertising creativity, and the interactive nature of the Internet is unmatched by any traditional media, such as newspaper, radio or television. Although the Chinese network advertisement is in the initial development stage, still take the banner advertisement, the pop-up advertisement and so on the compulsive advertisement mainly, but along with the Chinese Internet technology Development, the Internet interactive characteristic will be fully utilized in the network advertisement. One of the fundamental characteristics of network advertising is the interaction, the core advantage of network advertising is "two-way interaction." HOMEVV's 360° Video show is leading the trend.

Second, call center offline interaction

HOMEVV International Home Network callcenter for users All-weather, full flow, full of intimate service, to solve the network advertising lack of after-sales service to ensure the difficulties. For agents, merchants and website browsing users to provide 7*24 special services, dedicated customer service phone 24-hour answer, QQ, MSN Real-time assistance, email feedback. Provide the most intuitive monitoring platform, the greatest extent to ensure the interests of advertisers.

Many of China's larger enterprises are also beginning to realize the great benefits of advertising monitoring, and the application of advertising monitoring services to increase the success rate of online advertising. In the past, the data provided by the operators of network advertisement platform lack of objectivity and impartiality, and can not meet the demand of the advertisers for a series of decisions. As a professional third-party research institutions to provide data, not only authoritative but also the data for scientific collation, analysis, to help advertisers better make marketing decisions.

Third, the refusal agent price transparency

To the maximum extent possible to ensure the interests of consumers and advertisers, HOMEVV International Home Network will adhere to the "Transparent to the end." Price tag, refused to agent, but also insisted that the sales staff a high commission. The use of quality services to win the market, through the market to enhance the brand image, promote the benign interaction of home industry.

Nowadays, the pace of application of Internet marketing in various industries is accelerating. Although it, the Internet and telecommunications are the main industries that use Network marketing, but we also see other industries embrace the Internet's good posture. Now the proportion of the household industry's budget allocated to the network has gradually increased. Financial institutions are also making more use of the Internet to look for potential customers when it comes to promoting credit cards and personal financial services. Even the most demanding FMCG brands are starting to speed up the use of the Internet, in the case of home furnishings, the number of new brand customers has increased by more than 50% in 2004. The fifth inflection point: The network advertisement effect appraisal Way is gradually comprehensive in the past, the domestic to the network advertisement effect appraisal, mainly by the click Rate, A single indicator, such as a click Cost, is used as a criterion, however, which obviously ignores the assessment of most of the users who have not clicked. Now, with the deepening of the understanding and application of network marketing, the whole industry began to evaluate the effect of online advertising more comprehensively.

"NET advertising prices to the basics"

With a similar to Ali mother and the International home network www.homevv.com Such companies appear, monopoly of the network advertising market, they can rectify the network advertising market, standardize the network advertising market, to develop the most suitable for China's national conditions of the network advertising price standards, from the industry point of view, to a large extent to curb the price of online advertising bubble, but also network advertising price True face. "Inflection point" is not necessarily a bad thing. From the actual situation of China, many industries in the early period of "rapid development" needs a reasonable buffer period, like martial arts master of the breathing meditation general, rely on the integration of internal mechanisms to remove the vanity of false magazines, return to the natural state, to a healthier state of the next phase of the growth.

Today, the power of the network versus traditional media is changing. If we compare the Internet with the traditional media, we will find that the market balance has begun to tilt towards the internet side. Print media, especially newspapers, have been slowly reaching a saturation point in the past year or so, with readers showing an aging trend, and even some large newspaper groups ' advertising revenue for the first time negative. Can not say that many of the original plane media customers are flocking to the network media, but there are some print media budget transferred to the network ads. In addition, many companies that rely heavily on TV commercials are also starting to put their TV ads on the internet for playback, which is a very good start, although it is not interactive. At this time, the specific industry norms of the introduction, stable quotes and quality marketing services will become the only way to the development of Internet advertising.

A wood into a tree, hundred wood into a forest. The particularity of network makes its development will undergo the process of dispersion-integration-refinement. Relatively low fees, interactive environment, not restricted by the regional convenience services, these conditions have made the rapid development of network advertising premise. At the same time, the professional website should provide further refinement rules on the basis of the standard. As a home industry portal, in this development process, the International home network will start from its own, steady, for China's Internet advertising market development to do their own.

Xiangru Baidu account Roy Yellow