Eric chief analyst Cao: Electric quotient DSP is ready to be sent

Eric chief analyst Cao June Bo

News and Science and technology 2012 Fourth annual effect of the integrated Marketing Forum held in Beijing December 18, the theme of this forum for both internal and external marketing broken Bureau, Dispatch as the exclusive financial media to this meeting to carry out the full report.

This is the keynote speech by Eric Cao, chief analyst.

The following is a transcript of Cao June's speech:

Very happy to participate in the million-MA meeting today, the task assigned to explain the DSP, you should be the electric dealer in the actual combat faction, Eric specializes in Internet-related research. This year can be said that DSP is the whole network marketing inside a big hot spot. In the whole talk about the relationship between DSP and our marketing significance and role, can be said to represent the internet marketing spirit, this spirit is the pursuit of more accurate, more efficient.

Before we explain this concept, let us understand how the whole Chinese Internet advertising is a stage of development. Before saying, Internet advertisement experience more than 10 years, more than 10 years 2000 years time just break billion, 2000 network advertisement is broken billion. The market size is expected to be 79.3 billion this year, this year may be a bit adjusted, but will certainly reach about 75 billion of the size of no problem. This year was largely a negative impact on the overall economic environment, but still 50% per cent. For the entire media advertising growth is a miracle.

If it were between 700 and 80 billion this year, the figure would be broken by nearly billions next year. Next year is the milestone era, because next year the entire network advertising scale than television advertising, we look forward to this time next year to face this conjecture. This growth rate is so fast, we know that there is a lot of truth behind.

This is actually we have seen some of the facts, online advertising is so fast growth, behind what? is efficient and accurate. In the earliest efficiency and precision we can see that the Internet ads from hundreds of millions of to tens of billions of growth through the portal display ads, text ads to promote. Tens of billions to break through tens of billions, 200, 300, 50 billion this is the search category ads, this year, the entire plate in 75 billion, search-type ads accounted for nearly 40%. Baidu a 10% 20%, if Taobao counted in, this year search ads can break through 13 billion. The proportion of the total network advertising is conceivable.

We know that search accurate click conversion rate is higher than a level of brand advertising, brand ads at the current number of very few, search-type ads you know a few percent.

The next round from the big hundreds of in the future to break the billions requires a new more accurate and more efficient, more effective class of the delivery level of a change. This time the global attention and focus is on the DSP that we are talking about today. is based on data mining, matching, real-time bidding, this form of resource optimization to produce results. We see the data, do this job does not have strong data and basic ability, basically do not have.

We put the whole meaning of DSP out, what is DSP? Demand side platform, demand side is advertising platform, detailed and accurate definition is to provide a cross media cross-platform platform across the terminal advertising. Cross-media I would say, not just a single medium on the web, including the Internet, including portals, including social, search, and so on. At the same time across different media, including online media, PC media, mobile media, television media and so on.

Through the integration and analysis of data to achieve accurate and real-time optimization of the delivery process based on the audience, it is expected to reflect real-time bidding, real-time optimization, but also to achieve a better optimization benefits. Advertising in the Internet itself has greatly improved in terms of optimization than traditional advertising. To the DSP phase of the entire media purchase into the audience to buy, based on what the audience dozen different tags, the definition of how many times, can be real-time, put mode and mode of further business.

We look at the concept of DSP into China for two years, the United States in 2010 has begun to promote this work, the active advocate is Google,google is the search ads male Internet, and then began to try the brand, in the brand advertising on how to achieve this effect, so constantly upgrade the industry. After the entire DSP, RTB mode, the U.S. network advertising evolution with numbers can be displayed. The United States this aspect of advertising scale, the green column represents the entire overall display of the size of the head, the so-called display ads is display, display ads are more brand-type display ads, such ads we can see its entire scale, 2010 9 billion, 2012 130, 14 billion, relatively smooth growth , about 20%, relatively mature growth. This is a good analogy.

China display brand advertising growth How much do you know? Sohu Display brand advertising for the first time in history fell to a number, QQ growth of 1% 2% has been very happy. What's the reason? The entire display of advertising has been to maturity, but also this year the entire economic situation is affected by the relationship. If the recovery is also about 10% growth, is the number of mature market performance.

We come to see the yellow pillar, the United States brand display ads through the DSP RTB real-time bidding method to launch, the size of what number? In 2010 is 3.5, 2011 10.7, this year may be more than 20, accounting for the entire brand display advertising accounted for more than 10%. 10% is actually an import period and a rapid growth period of the digital ratio. 10% will be fast and we expect to reach nearly 30% in 2015 and 2016.

We see the growth rate of what growth, the first few years 100% growth, market introduction period to the rapid development period of a growth level. The United States is now through two years or so time, has completed a display class advertising process.

The role of the United States DSP itself is evolving, we see do DSP in the United States is also a lot of home, these homes are in the last two or three years, there may have been some innovative companies, there are some former companies to integrate over. On the other hand, in the whole DSP industry chain, the relationship between the advertising trading platform and the industrial chain is more and more close. We can see through the advertising trading platform, the United States the largest more than 50% of the search engine ads, Google this and the home DSP docking, to achieve a RTB real-time launch. The last year has been a huge investment, Facebook.

See the U.S. growth, we see China's entire DSP, RTB development trend and course. This diagram basically unfolds such a panorama, here we define is the Chinese DSP advertisement puts on the market scale, the United States uses the RTB, here uses the DSP, including RTB, including the RTB to put. We expect in 2012 this year through the DSP network advertising volume should be up to 910 million yuan. 2013 next year to reach 2.43 billion, year-on-year growth of more than 100%. In the next 3 years to 4 years the annual compound growth of more than 100%. According to the structure of the analysis we see, through the DSP for the delivery of these types of advertising is what size? The first row is the display class, the second category is the search class, the third category is social class. A structural change in the next 4 years is that we see the highest proportion of display class, more than 60%, the fastest growth is the search and social class, in the next 2016 to reach 25% and 14.8%, through the DSP optimization of search engine advertising, social resources for the audience resources, the proportion will be greatly improved.

Next we can look at these detailed data, the three types of ads in the DSP ads, the type of advertising their growth and specific data. Everyone is interested in the time to go, and Eric will share the reports. Here, for example, we can make 2012-2016 forecast, the entire DSP advertising, show the type of advertising is how much, some DSP will cast some non-real-time advertising ads, with a yellow color column display, the proportion of small.

China's entire advertising industry chain based on the advent of DSP and RTB, we found a great change in the industrial chain. New companies and the new role of the industry chain in recent years has been the attention and contact, the original advertising industry chain we can see is the left map, relatively simple, evolved to now the whole based on the DSP,SSP,RTB model, the industry chain appears a large division of labor refinement. We can see that there are more parts here that are the characters that the color block shows.

The first is the advertising trading platform here to play a central role, where there are a large number of media resources and advertising demand docking, real-time auction generation. Like a stock exchange. Based on data support, data matching, precise positioning of the crowd there will be a DMT data mining side to help advertisers carry out the relevant data mach. Green block is to provide advertisers demand side platform for enterprises, they can through the agency advertisers demand, agent advertisers through their own disclosure of the main demand for advertising, to achieve through the ad trading platform for some of the auction real-time bidding, like in the stock three households than the big customers, through the brokerage more efficient. The same concept.

Here is the SSP, also plays a very important role, want to let the advertising real-time bidding, in fraction seconds to lock users, and display accurate advertising is required media advertising system, but also to be very good cooperation. In the SSP many enterprises in the relevant layout.

We find that the entire chain of advertising industry in China will evolve in the last two years and in the coming years. If the industry chain for the overall display, through this map you can have a better concept of carding. This figure shows a few color blocks. The largest number of laps, from the advertisers are green, to the most terminal audience red, the middle of several of the same role, with different lines to divide. The left side of the Green Line box is the demand side, one is including advertising agencies, DSP companies, the middle is advertising trading platform, DMP they are relatively third party, is the intermediary role. On the right is the advertising network and the media, and more is the media side. Here are a lot of red dashed lines, box out a lot of enterprises, these enterprises in the whole we see the DSP industry chain inside the tight layout of some enterprises and companies.

See the Million-Ma and so on companies, these companies are in this to do the corresponding layout, features are both in the DSP, will also appear in the DMP, the billion-MA DSP will have, DMP will have. Advertising Alliance This everyone is familiar with, and SSP, here is actually the entire DSP further evolution, in order to better put accurate advertising, need to coordinate the entire industry chain resources. It is not difficult to understand why the current DSP layout of the enterprise needs to be at several levels to do this optimization. China's infrastructure construction in advertising and the United States has a big gap. By division of labor and by the ideal division of labor specialization pattern should be in the future a long time before reaching a stage. At present, who can better integrate the various aspects of the industrial chain resources, to achieve precision marketing who can get better resources and location in the market.

DSP on the meaning of advertising, summed up three points. Advertising through the DSP can improve the effect. Previously bought media, package a location, one months, price to give a discount. But exactly what people see our ads can only be about the impression, he does not provide detailed data. Through the DSP fund advertising is launched in accordance with the audience, I want to put the male or female, age group how many, geographical distribution, his income structure what kind of his purchase behavior and experience, he has how much budget. These data through the DSP with the help of DMP, through the SSP can quickly achieve such a precise matching and delivery. To achieve optimal advertising resources optimization, here the process of continuous optimization, and constantly do the secondary lock and focus on the core audience, efficiency is much higher than the general meaning of the package section this way.

In addition to efficiency, now put more advertising companies in accordance with the previous advertising model is the media to buy some ideas to put some creative things. Agency services are relatively dependent on people, now through the DSP to launch, we can see more rely on products, rely on data, such words can bear the mass of large-scale traffic media resources, at the same time can be RTB mode automation purchase, so that the whole work efficiency, not completely dependent on this, relying on data and technology.

The third level is at the management level, including how to unify the interface, how to monitor, report results, and so on. Everyone has a headache. On the DSP platform these work will realize some automated process and standardize one-stop style, reduce the advertisers some pressure. These three points make DSP play the core role. In the process of selecting the DSP, we can see that the two types of advertisers have a very strong use of the future direction and trend of the DSP mode.

One is the brand, brand advertisers in fact we know that before more is the election media, more Sina cast, because the identity of advertisers. The budget is basically limited. Then in fact for the brand, in fact, more emphasis on the precision of the audience display. This time through the DSP can achieve the efficient spread of the brand, accurate transmission. For the effect of advertising, there is nothing to say. Because the pursuit of their own ROI, the pursuit of Ctr, the pursuit of deal orders. We have seen that we may not be able to invest in some of the advertising resources of the brand media, however, as the overall trend of development, there will be a part of the previously thought Spring brand media, some traffic will be connected to the DSP, in this case, we see a lot of matching audiences, in a variety of media resources can be launched, Accurate delivery when the effect of advertising is far higher than before. For the effect of speech, the pursuit of DSP is certainly will be further increased. For the advertisers of the electric business is even more beyond doubt.

At present, Eric observed a lot of enterprises in the DSP market competition, in 2012 to see a lot of enterprise transformation or entrepreneurial or, put the DSP industry trends, we conduct the entire enterprise analysis, we will pay attention to several aspects of the dimension, including DSP enterprise technical capabilities, his data ability, his media resources ability, Service and layout capabilities. These points determine the DSP enterprise's overall competitive strength and service capabilities of the core elements. Look at the two points more. The point is the data of this enterprise, another point to see the technology of this enterprise.

We can see the concrete to talk about this data and technology, we will look at several levels of data, data sources, data analysis data management, here are more professional. Whether the data source has its own data, whether there are third-party access data, data analysis can be qualitative, qualitative content. Data optimization, data management can be for your final precision tag processing capacity is available, this point we can see, billion MA should be more prominent. Because of their own data, we all know that there is an advertising alliance, this is the billion-ma strengths. The transformation of DSP, when doing DSP, the data of the billion MA has its own unique advantages.

In technology to see this DSP depends on the overall strength of technology, technology research and development input, including personnel scale, product function, because to integrate, such a delivery, this product can be coordinated mode, technical experience accumulation and so are the core elements.

We probably understand that, DSP under the total cost, 160 100 dedicated to do DSP, the number of personnel in our understanding of DSP in technical personnel input should do the most. Products on the media, on the search, the integration of technology products should be the characteristics of the billion-MA. In the accumulation of technical experience, long engaged in the effect of marketing, is indeed a billion-ma advantage.

Domestic DSP data and technical aspects of an analysis, the billion MA has its own unique core competitive advantage. As distinguished guests just now speak of their respective competitiveness, each home to find their own core strengths in some markets can be further developed. Because now the market is not you have idea can PK market.

Future DSP development Trend, I summed up three pages, the first page is full digital, we now see the PC screen, mobile screen, and digital, the future is a TV screen, outdoor screen digital. These digital more and more media in fact can be digitized, Google has been fully advanced process. We see the Android TV and Google glasses all in the layout. The trend is more pronounced over the next 3-5 years.

For DSP needs a comprehensive digital resources to achieve precision, real-time accurate delivery mode. Here you can see through the comprehensive integration of resources, to achieve more efficient, this attention to the current PK mobile phone, because mobile internet age everyone is very important to mobile terminal data. The future, in addition to mobile phones to the outdoor also appears to have such a shocking effect, the United States has such a case, outdoor advertising how to data, install a camera, this camera face recognition function, look at outdoor advertising time, your ID is matched, label processing, who you are, online purchase what products, online purchase. Whether to go to the 4S shop, such people should throw milk powder or what advertising, automatic cast.

This is in the near future, the United States generally lead us 3, 5 years, digital advertising, Chinese network advertising colleagues chasing very tight, 2 years of time DSP has been to China, China is now less than 2%, the next few years will be a rapid direction to the United States to carry out a transformation.

The future of the entire DSP advertising industry will be more perfect, and continue to do some division of labor, DSP will have many modules, there are many professional companies involved. Each key point is followed by a specialized refinement of the different independent modules, this aspect I believe that there will be more, we find that the future precision advertising investment has a higher quality companies, for the pursuit of efficiency advertisers to provide advantage services, promote the Chinese network advertising eco-industrial chain, as well as the scale of network advertising to make related contributions to further growth. Thank you.