Hongbo: AdWords and Chinese suppliers

As I said last year, e-commerce is going to be another pillar of China's Internet (the current pillar is advertising), depending on the premise that it will benefit more consumers, businesses and cooperative websites. Ma Yun is very clever at this point, when everyone is swarming into the entertainment value of the Internet, he turned his eyes to entertainment.

As the world's factory, international trade is the lifeblood of many manufacturing companies, such as Chinese lighters, buttons and shoe makers. If you can help these companies get international orders, then these companies are very willing to pay a portion of their income to you. This is the Alibaba model. Alibaba is helping Chinese companies earn foreigners ' money, but it is making money from Chinese companies.

A friend started business at the beginning of the year, but also doing international trade. He spent 60,000 yuan on a Alibaba "China supplier" qualification, and he also tried to put English keyword ads on google. After comparison he found that Alibaba can indeed bring him a part of the order, but the cost is much higher than Google brought him orders.

With Google's Web site access analysis tool and AdWords Optimization tool, his site currently has a high conversion rate, that is, the number of orders generated through the ads with the number of clicks on his ad. In other words, as long as he increases the advertising costs, it will bring more orders. Now he understands why Google is worth 160 billion of dollars, because a huge long tail e-commerce market is supporting it. That's why Amazon and ebay occupy the top two of Google AdWords's biggest buyers.

But what confuses my friends is that, as the biggest multinational business-to-business platform, Alibaba does not increase its advertising in English to Google, as it does with search engines and portals in China, helping Chinese suppliers get better international orders.

In his view, AdWords optimization may be a more efficient, faster and more manageable than SEO business. Because most domestic producers know little about this, lack expertise, and do not understand the search habits of Western clients. Therefore, most manufacturing enterprises can only passively rely on Alibaba, but can not use the Internet to carry out their business. And Alibaba is not a trading platform, it can only charge to domestic distributors, but not to foreign buyers charge. This probably led to a lack of willingness to launch AdWords ads. Alibaba is more willing to make the promotion to the domestic supplier: Through me, you can sell the product to the whole world. But do not want to promote foreign buyers: through me, you can buy more inexpensive products. Because the latter does not pay for it.

Compared with about 8 million Google keyword purchases by Amazon and ebay, there are so few e-commerce companies in the country and fewer companies that can provide AdWords professional services, which is likely to be a huge market opportunity.

And I also think, what is Google's value in the end? Certainly not entertainment, entertainment than Google do a lot of good, and not simple traffic, Google's traffic has been no more than Yahoo!. Perhaps the greatest value of Google is the value created by it. My friend's company, just a small company that set up a few months ago, is expected to close to 2 million dollars by the end of the year, and he is happy to send more money to Google. The problem is that there are too few companies in the country with the ability to operate on the Internet.

Ma Yun is seizing the opportunity of China, how big is this opportunity? I think, certainly will not be an Alibaba can cover.