Effect paid advertising will become the mainstream E-commerce marketing mode (i)

Recently has the leisure, conveniently wrote several blogs, talked about is I to the electronic commerce some impressions. Because before the Dangdang has been responsible for a long time in the market work, from the perspective of electric business enterprises to try a variety of promotional forms, through the Dangdang tens of millions of scale annual promotional costs as the basis of data, summed up the advantages and disadvantages of various forms of promotion. Later, and to the professional Network marketing company, through the service more advertisers and with some of the mainstream network media cooperation, but also close to the various forms of advertising, so I write my mouth, said the written, nothing but the anxiety for it everywhere for the problem, I hope that my thinking on these issues will be beneficial to my peers in a similar position and to form an atmosphere of communication and interaction. The reason why I write a blog is this.

At the outset, first come to my point of view. One of my judgments is that CPS (the form of advertising that divides advertisers into sales) alliances, search engine promotion, and email marketing will become the mainstream marketing approach for e-business companies in the future. Today, I will introduce the CPS Alliance, followed by the introduction of search engine promotion and e-mail marketing.

When I first contacted the internet in 04, I studied Amazon's CPS paid ads in detail, according to the data that Amazon's alliance included Associats and Web services, when more than 60,000 websites in the United States became Amazon's Alliance, Amazon's sales to Amazon through the affiliate website will be divided between 4% and 8.5% of the sites, depending on the category. The league's sales accounted for about 15% of Amazon's total sales. Amazon's sales are expected to reach more than 20 billion U.S. dollars in 08, the sales from the alliance can reach more than 3 billion U.S. dollars, the CPS Alliance spent advertising costs can reach about 200 million U.S. dollars.

Domestic mainstream business E-commerce website has its own CPS alliance. Initially, the alliance brought in sales of between 15% and 20%, and some sites were even higher than that data. And the cost of the alliance is very low, advertising costs accounted for the immediate sales of about 10%, equivalent to bringing an order to spend about 10 yuan of advertising costs.

10 Yuan an order equivalent to what concept? For example, if, like Dangdang, excellent network advertising on the portal site, according to the normal discount purchase, the order cost may be 500 yuan.

So CPS Alliance fully conforms to an excellent advertising characteristics-high efficiency, scale. Like Dangdang and the network of excellence such as mainstream Enterprise, CPS Alliance has become the mainstream of the promotion of the form, and the league's share of sales are steadily increasing every year; Vancl even increased the proportion of the alliance to 16%.

The CPS Alliance of Domestic Business E-commerce website because of Low-cost, large-scale, replicable, so has gradually become the mainstream of marketing, but at the same time there are a lot of restrictions on this industry development problems:

1. Although many of them advertise tens of thousands of websites as their alliances, the number of sites that really can bring sales to advertisers is very small. When it comes to excellence, for example, the number of sites that actually generate sales in each month is only within 1000, with very few. Compared to the number of websites in China and Amazon, the gap is far too large. The 1000 sites that bring in more than 90% of sales are mainly the top 20 sites. It is evident that its CPS alliance did not really play millions of of the long tail of the site benefits.

2, even in the first dozens of sites, really can bring revenue to the site is mainly to Web site navigation site, Shopping forum class sites, comparison shopping site-oriented. Web site navigation sites are mainly hao123 Web site monopoly, the expansion is very small, unless you look forward to the growth of hao123 site traffic, and the shopping forum, because of the use of the forum to buy users to return to the point of the shopping site on the price-sensitive users, so, The value of developing new customers that it really brings to the site is not high. But the domestic comparison shopping website also underdeveloped, the growth space is very limited. There are also some enterprises through the purchase of Baidu, Google and other search engine generic words, such as when, such as excellence in the relevant words, to bring sales to the site, because these words originally Baidu requirements are brand protection, so that enterprises caused the waste of the cost and did not bring new customers to the shopping site.

3, in addition to these sites, most of the affiliate website income is very low, resulting in the vast majority of the media are not too much interest. And often those who feel can combine with their content site is willing to put ads on their own site, for example, some of the site of the note will be when the great note will book on their own website, can make some money and provide content to the site. So these sites if they do not have the ability to sell, would rather be Baidu, Google's Alliance, earn Pay-per-click Pay.

4, E-commerce sites in the alliance's technology investment Low. True Alliance development needs technology-oriented, Amazon spends a lot of human cost on the alliance, including web Vservice application, so that the site can do whatever it wants to do with its own website theme mall, or packaging to become their own mall, as part of their own site At the same time, it also put a great deal of effort into the precise match of advertisement and the smart code. But the domestic e-commerce enterprises, generally only a very simple business system, just can do simple code, records and clearing it, often in the system advertising data records have problems, not to mention the deeper technology.

5, a large part of e-commerce sites to the autonomous development of the main alliance, through the Third-party Alliance company to bring sales accounted for the total sales of 20–30% or so. This will lead to a lack of specialization and media revenues. But the main reason is that the domestic Third-party Alliance has not developed into a professional size of the company, and did not form a core advantage, but also provide value-added functions do not provide more than the site itself, the site will not be willing to pay a cost in vain.

6, the domestic third party CPS Alliance Company is not professional enough. Domestic do a number of CPS major companies have South Korea's Linktech, billion-m technology billion start, there is a good intellectual easy.

Linktech is committed to doing CPS, it is said that the parent company in South Korea has been very successful in order to win technology. But in the domestic development encountered a few problems, one is too frequent personnel replacement, whether it is high or mid-level, that is, 10 or so people's company, I have almost seen them in recent years 20来 people. There is not enough localization, especially technology platform, South Korea should be limited by the headquarters of the larger, more than a rebate to focus on the CPS alliance, but more sales came from its Buyren shopping forum (now renamed as the easy to buy network, mainly this site is engaged in to the shopping site through its customers to return to the point , the value of these shopping sites is not high for these price-sensitive customers; Yes, the wisdom of the Yi is not at all to see the income of CPS, although there is this business, but because compared with their other business size gap is too large, so did not vigorously develop this business, through their platform often take a few orders every day.

In a word, although the CPS Alliance has gradually become the mainstream of E-commerce, accounting for a large number of sites 20% of the scale, but in this process, there are some restrictions on the development of the industry. However, I am happy to believe that, with the development of domestic Internet and e-commerce, the number of online shopping users increasing, as well as the rapid expansion of online shopping scale, the entire industry will give CPS Alliance Advertising has brought huge space, CPS Alliance will rapidly develop and become a mainstream e-commerce marketing model. (The next blog I will focus on the effect of pay will become the main E-commerce mainstream marketing methods 6 reasons)