Cookie privacy issues are bothering the third party web advertising platform

Cookie privacy issues are troubling third-party web advertising platforms. Not long ago, CCTV 315 party openly accused of easy media, Chuan Yang, friends, such as interactive network advertising companies, which still rely on venture capital to support the industry into controversy.

The Chinese Internet Association hosted a seminar on cookies last week, bringing together more than 10 third-party online advertising companies and planning to sign a "white list" industry self-regulation agreement emphasizing industry norms to circumvent public opinion and regulatory risk, people familiar with the matter said.

But this is not the biggest trouble for third-party web advertising platforms. They are now facing a more fundamental problem: in the advertising and media mezzanine, upstream e-commerce and other advertisers depressed, the demand for more and more rigorous, downstream media resources prices are rising, the procurement costs are higher. This is more a matter of life and death than cookie privacy.

2010, 2011 is the third party network advertising platform the best ERA. At that time, in the E-commerce investment hot, the rise of the background, the third party network advertising platform is also the capital of the hot. Yi Media in 2010 received the third round of 40 million U.S. dollars in financing; In 2011, Mediav announced a third round of financing for 50 million dollars, and received a second round of financing for 20 million dollars; in 2012, Easy Media submitted a listing application to the SEC.

However, the promotion of venture capital does not make the Web advertising platform a better story. "Third-party advertising platform revenue and model has a certain dependence on the media dependence on advertisers rely on, the story is not particularly good to hear." "A person familiar with internet advertising said.

With the economic environment and the capital market cold, as well as E-commerce, group buying into the frozen period, the third party network advertising platform encountered a big blow. Industry sources to Tencent Technology pointed out that the current industry most companies are not ideal survival, distance from the profit is still in the near future, some companies in the electric business in the winter also suffered a heavy blow, a well-known industry companies by the failure of the electricity business to bring bad debts even as high as tens of millions of dollars.

Even the easy media, which had a good performance in the industry and were profitable in 2011 and 2012, faced embarrassment. In February this year, the easy media announced that, due to weak U.S. capital markets and investor confidence in the stock market, easy Media has submitted to the SEC to cancel the listing application. Another news to Tencent Science and technology points out that the easy media is currently with Baidu Capital trading negotiations.

Deep in the doldrums

Easy media, Chuan Yang, product friends and other Third-party network advertising platform business model is complex: one is the effect of advertising, the main effect of marketing. The second is to do brand advertising, but more than the average 4A ads pay more attention to effect.

An unwilling to be named Senior network advertising, easy media, Chuan Yang, friends, such as interactive third-party network advertising platform has the following types of profit model:

One is to earn the difference, low prices to buy advertising resources, high prices to sell advertising resources.

Second, a service charge. In real-time bidding advertising mode, the demand-side platform (DSP) provides technology for advertisers or agencies and collects service charges.

The third is the mixed form of the above two modes.

For the first model, the third party network advertising platform in the media and advertisers in the mezzanine, on the one hand, the price of media resources continue to rise, the original procurement costs higher; On the other hand, advertisers are exposed to the impact of a large environment, and the effect of more and more high demand.

In the media end, in the past two years, due to E-commerce, group buying, web game burning money to put ads, media prices all the way up, easy media, Chuan Yang and so on, wave gold companies face the pressure of media procurement. In the main advertising, the current major advertisers such as E-commerce industry financing in the cold, group buying ushered in the collapse of the tide, online games, education industry is also in a depressed state. "Big advertisers of the depression, but also caused by the third party network advertising platform is not easy to clip in the middle, there are some cold winter feeling." "says a third-party online advertising industry practitioner.

In addition, advertisers have put forward higher requirements for conversion rate. "Now the electric companies put ads to the Third-party network advertising platform to ensure conversion rate, which home to choose the most." "said one person familiar with the matter.

"The first model of earning a difference is relatively simple. The second type of DSP charging service fee mode is very high on data and algorithm. In foreign countries, Turn, Media math and other companies have been very outstanding, advertisers are willing to pay service fees. But domestic companies still need technology, data accumulation. said the advertising industry.

Competition for the Red Sea

The competition of the third party network advertisement platform is already a piece of red Sea. Easy media in the prospectus pointed out that its main competitors, including with the media, Chuan Yang technology, poly-sheng Wan, easy interoperability, interactive, wide-pass, good yes.

In addition, to some extent, easy media, Chuan Yang, etc. also face Baidu Alliance, Ali Mother's competition. "From the big scope, easy media, Chuan Yang do things, and Baidu Alliance do things poor." "said one senior advertiser.

Baidu Alliance and transmission of the easy media, the difference lies in the way the price and the resources. Easy media using CPM pricing, biased in favor of the needs of the brand advertisers; the Baidu Alliance is the CPC way to price, biased effect category advertisers demand.

But whether it is easy media, Chuan Yang or Baidu Alliance, are gathered on the Internet, the remaining traffic for webmaster resources and advertising resources.

In addition, with the rise of social marketing, advertisers to put money is dispersed, the third party network advertising platform also caused a certain impact.

So, where is the space of the third party network advertisement platform?

The founder of a third party network advertising platform believes that one is to maintain the existing model of earning difference. "Third-party network advertising platform to get through a lot of media, has a certain value." But this part of the turnover growth face challenges, not doubling growth, growth rate of 20%-30% has been good. After all, media prices rise, advertisers do not give you a fare increase. ”

Second, the data accumulation and algorithm optimization. For real-time bidding mode, data and algorithms are very important. "Third-party network advertising platform, only their own accumulation of data, the technology to do a good job in the future to better development opportunities." ”

Precision Marketing is exaggerated

"The effect of advertising by a lot of companies over the elaboration, we all take accurate publicity." The effect must be there, but not so God. "If this model is established, theoretically all companies can make money, and none of them will lose money," says one online advertising practitioner. ”

A technical personage thinks, "precise" the word is the network advertisement company "blows", can say "very accurate", cannot say "accurate". He explains that large data analysis has some characteristics, such as false positives rate. Ad-Delivery for a specific group of people is not necessarily accurate, inaccurate accounting for the total number of the ratio is false positive rate.

The improvement of accuracy and several factors: first, the quality of the sample, the second is the number of samples, the third is the method of analysis of samples. "Actually very difficult, need a lot of research and development input, and artificial input to adjust." "said the technical personage.

"Third-party network advertising platform How accurate, are accurate but Baidu, Taobao, Tencent." Third-party advertising platform is through the cooperation of the media, analysis of user behavior, these internet giants have users, has a congenital advantage. "said a senior person at an internet advertising company who declined to be named. "Everybody (third party network advertisement platform) is in turn to the brand advertisement." ”