Electricity Business enterprise defaults to advertising fees into the normal industry is the winter coming

A few days ago, said that the domestic well-known L-word head of the vertical business website stopped in the wireless internet large-scale advertising, but also stopped in the Internet, all the basic advertising, according to people familiar with the matter, the company has defaulted to the agency tens of thousands of dollars advertising fees. In fact, not only the company, reporters after the interview found that the electricity dealers in arrears advertising fees are now in the industry is a common phenomenon, this may be from the side to prove that the electric business of the winter coming.

Advertisers chasing debts

The IT Times reporter then contacted the explosive material person, the person does not want to disclose the name of the company, but he confirmed to reporters, electric business enterprises owe advertising agency money is very common thing, and he also stressed that the arrears to achieve tens other or relatively rare.

Yes, yes. Advertising is currently the largest professional network advertising companies. A person close to the good is also confirmed to reporters that the explosive material people about the electricity business generally owe money news, he added that now to the electricity business enterprise collection is very difficult. Industry has also been rumored that the focus of advertising has sent a deputy vice president from Shanghai to Beijing, to a group buying site to recover advertising fees.

The person also said that not only is the network advertising companies, other traditional advertising companies in the arrears of large companies also have electric business. However, the person also stressed that, generally speaking, advertising agencies will give advertisers a certain period of time.

In fact, in addition to defaulting on advertising fees, the company's bad news is constantly.

September, once with shop No. 1th and said "Shanghai Electronics business Super Double-hung" large warehouses announced business, recently has the same problem of the United States and inexpensive online supermarket also temporarily closed, the recent casual snack to the West Rice Network founder Liu announced the withdrawal of snack electric dealers,

Huaqiang North Online Vice President Shangxiang also on its micro-blog continued to explode material said, Shenzhen two cosmetics electric business enterprises, Rice Mall and grab fresh net recently successively closed. Another domestic top three cosmetics companies have failed to gamble with VC because of poor performance and may be forced to wound up by the end of this year.

Winter is here.

"Winter has come to be the general view of the electric business industry." Yang Chun, Director of science and Technology business, told the IT Times reporter. Jing Shuo Technology is a network of advertising monitoring and consulting service providers, Yang Chun said, "to show ads to the consumer to see the ads, and then to purchase the whole process of a single indicator-conversion rate, foreign do a better consumer website can reach about 30%, while the domestic jingdong, when it is relatively good, probably in 1 About。 "So the large number of ads for the electric business enterprises are ineffective."

However, he also said that in the current environment of China's internet industry, even if the advertisement is known to be ineffective, continue to burn money. Leisurely Tourism Network CEO Li Daishan said that China's common Internet development model is "fast" and "quantity." First spell speed, run faster than competitors, and then spell the level, with competitors Rob users, and so enough to lead or enough users, and then slowly explore the appropriate business model and profit model. Enterprises and VCS have recognized this model, resulting in a share of money to become a normal, although we all agree that the development model is not healthy, some enthusiasm, but when others do so, you have to do. ”

The health of the Electronic Business site is an indicator of ROI (return on investment), simple point, that is, spend 1000 yuan advertising investment, can change back to 1000 yuan sales revenue. Yang Chun said, now domestic relatively good electric business enterprise, can do 1:8. He believes that in the electric business, the final market will also follow the 2:8 principle, that is, 20% of the site will get 80% of the market share. "Big sites are more likely to survive. On the one hand they have more money, on the other hand even in the winter, consumers will still shop on these sites, has developed a habit. "Yang Chun told reporters," In fact, before the arrival of winter, has been able to see a lot of electric enterprises to hit the money to CCTV. These ads are mainly to build their own brand, and further consolidate their impression in the minds of consumers. and small Web sites, must come up with a number of differentiated mode, in order to avoid the fate of the closure of the door. ”