A new smile curve in the mobile internet age

The PC era industry smiles curve we all know. If we want to give the mobile internet age to draw an industry smile graph, left and right each have a value high, the middle is a value depression.

On the left, we call the customer adhesive value, the value high on the right, what we call the application convergence value, and the middle value in the low-lying place, which we call the pipeline transport value. This is a stark revelation of the increasing value of customer adherence and application convergence in the mobile internet era, while pure pipeline transmission is actually losing value.

And about two value highs reveal the most central business model of the mobile internet age: On the one hand, to have sufficient size to hold customers, generate traffic, and second, to convert this flow through a variety of business models into visible commercial value.

How is the application convergence value generated? From now on, the most mainstream profit model, there are mainly three kinds. The first is the back-advertising model, this is almost the birth of the Internet, the most easy to think is also the most mainstream of the profit model, the massive flow of traffic into the attraction of advertisers, to attract them to advertising, whether it is the portal, search engines, social networking sites, game sites, their development process is clearly revealed this point. Another is the digital application downloads, which are generated by user subscriptions. including digital audio and video downloads, internet value-added services applications and so on. The third kind of typical profit model is to transform the traffic into the transaction mode. Internet service providers have profited by matchmaking transactions, both business-to-business and in general, along such a profit model.

The prerequisite for the effective realization of the above application convergence value is that must cling to enough, invest time long enough, deep enough depth of the user, that is, the left of the value of high---customer adhesion value is the foundation of any internet business model, but also the basis of higher valuation returns in the capital market. Because the Internet economy in the customer transfer barrier is very low, which means how long-term effective adherence to customers, is any internet business need to face the problem.

The history of the Internet, in a sense, is a history of the ever-increasing value of content applications and the constant depreciation of network pipelines. In order to maximize their own survival and benefit, Internet Application service providers must make every effort to minimize the cost of all customer experience links in order to gain value in advertising and subscription. and "All Customer experience link cost minimization" is bound to bring the rapid devaluation including network pipeline. In other words, if the Internet business model is to be set up, the cost of Internet access and transmission must be very low, and Internet service providers earn 10 yuan, often the cost of the traditional network pipeline of telecom operators to depreciate 100 yuan. In such a surging user low-cost requirements, network pipeline value is constantly suppressed and increasingly devalued, and even the trend of local free. This is the essential reason for the lower value of pipeline transmission under the new "Smile Curve".

(Responsible editor: Lvguang)