From precision to recommendation: Reconstructing network advertising business model in large data age

Now the network advertising, the development of space is still very large, because they put 99% of the money space are thrown away. With the development of large data, the money will be picked up by the next generation one by one. At that time, people will know more clearly about the truth from precision to recommendation.

Future advertising will be like this, advertising for different people, presenting different content. By this precise measure, almost all advertising is now obsolete in the future.

Precision is relative to the needs of consumers. Because it is not accurate, so consumers do not need. The problem of precision is how to really tap into the consumer's personalized needs. What are the opportunities offered by the big data age? Will accurate advertising develop in the direction of lifestyle recommendations? Let us look forward to the reconstruction of the network advertising business model from the perspective of futures.

Will soon be fashionable RTB

Let's start with the most traditional. Of course, from the perspective of the futures, it will be popular next year, which is what we call the most traditional (or just red, the most fashionable, etc.). Otherwise what will be eliminated in the future?

It is said this year is the RTB of Chinese advertisement. RTB (Real time Bidding), real-time auction advertising, is just the red, the most fashionable advertising hotspots.

RTB In contrast to the traditional form, the advertising wholesale market (ad Exchange) is not selling ads in the traditional sense of advertising, but to access the ad site specific users. This looks more accurate than the ad bit in the past. Before, if the elevator, up a toothless old man, you in the elevator to play the toothpaste ad must be blind. Now, the equivalent of staring at is not advertising, but the people who look at the ads. You need to stare at this user's interests and preferences, to produce the greatest benefits. RTB is equivalent to selling the hottest users to advertisers. Advertisers rush to buy better advertising and advertising exposure.

The emergence of new precision advertising forms also brings about changes in the way advertising is managed. Overseas, people have built the demand-side platform DSP to help advertising agencies to achieve the optimal delivery of internet advertising. Subsequently, the advertising supply platform SSP, data management platform DMP and other subdivision platform is also constantly appearing and development, so that more and more advanced advertising management tools.

The process of data processing is also speeding up, DMP (data management platform) and the emergence of the data exchange (transaction platform), will help advertisers, advertising agents and media owners to better organize data and application data, so as to RTB users in the value calculation, advertising targeted delivery to enhance the effect, Further promote the development of RTB industry.

How does RTB achieve precision? Suppose a potential customer browses to a Web page, and a network requests ads from an ad exchange platform. Trading platform to all demand-side platform (DSP) issued a notice, "a network of visitors, or to send him ads." The DSP request data management Platform (DMP) assists in analyzing the visitor and making a bid decision based on the results. Ad Exchange matches the associated advertising code with the high bidder's DSP.

In China, the new network advertising enterprise represented by Easy media is becoming the leader in this field. Yi Media has launched the integrated digital advertising platform including AdManager advertising operating system, ASP supply side advertising platform and ADP demand-side advertising platform. ADP integrated DAS and DSP two large demand side advertising operating system, is designed for advertisers/agents to develop the demand-side advertising technology platform, ASP is designed for the Chinese Internet and mobile internet media owners to build a technology platform.

According to pubmatic data, the 2011 RTB mode of purchase in the United States has more than 1 billion. IDC expects 2012 RTB to account for 20% of all display-type ads. By July this year, global RTB market share in the second quarter of 2012, according to Accordant media, Rose 128% from a year earlier.

At present, advertisers around the RTB division is busy, all day thinking about how in the RTB way to the Ad exchange,ad NETWORK,DSP allocation of resources to make a big fortune.

Because it is talking about the future, we have to talk about this kind of fashionable things, in the future obsolete in where.

RTB, like all traditional ads, is still the producer's Big Horn. Is the producer as the center, pushes the technology to the consumer to push the advertisement. However, the past is playing a loose bomb, a dozen pieces, now more than a shot paramilitary. The way consumers accept advertising is still the same as "getting shot in the face". He didn't come to the door, but he couldn't hide.

What further changes will happen to the advertising industry when real big data (not just "big data") arrives?

Advertising based on Semantic web

In fact, to say large data, but it is always behind the arch of that force, pushed to the surface of things. To clear the big data, you need to put the same as it floats on the surface of things, such as the web, mobile, positioning, 2.0 and so on, linked to see, to restore the driving change behind the hand.

There is not a better word now, than the concept of the semantic Web, which is more suited to string things up. The semantic web is Berners, the internet legend at the opening ceremony of the London Olympics. The semantic Web first conforms to the standard of large data, is the aggregation of heterogeneous data, and secondly it is 2.0, representing the forefront of the HTML5 from web Peer-to-peer to mobile Internet; it's self-organizing, self-coordinating social network computing or many others However, the semantic web is like a concept sports car, it is not open to the road practical. It is more like a kind of gas field, which puts all kinds of sentient beings under it and makes an epiphany.

When we are talking about the spotlight of the net, we will find that the foundation of the advertisement is shaken.

The prototype of the existing advertising is still "paper" Such a medium, this "paper" (whether it is text, audio, video) is just a screen, is to play to the audience (passively accepted). The semantic web has completely overturned the media itself, it is no longer just a piece of paper, or a screen, more like the meridian of Chinese Medicine, but is the semantic meridian, "meaning Meridian", with the network string up the semantic meridian. Any advertiser has not seen such a thing: you have seen the paper long meridians, you have seen the elevator screen can lead to the meridian? Commonly known as large data, the web and other things, the end can be used to get through the ads of the two channels. Only the meaning of the consumer heart through, accurate only targeted. The next generation of advertising precision is no longer just like RTB, lbs positioning to people, but along the meaning of the meridian, direct positioning to the heart, for the hearts of the dorsally.

This may seem rather empty. Let's talk about things that are easy to understand around us. Public praise Advertising, we all know. Word-of-mouth advertising is not advanced in technology, but there is a point, it drilled into the hearts of the ability is very strong, you can get through. This is the sense of the induction at work, that is, people and people, in a certain information channels, trust each other to produce identity. Word-of-mouth Communication in low technology conditions, the efficiency is limited. Because, Word-of-mouth effect is good, but not as radio, television, newspapers spread fast, spread widely. Although the advertising industry also uses word-of-mouth dissemination, but more as an auxiliary means.

But if combined with the semantic web, it's completely different. It will make a impact on the traditional advertising intermediaries. Advertising will evolve into a public carnival that has marginalized advertisers.

We observe that Word-of-mouth communication is not a peer-to-peer technology, is point-to-point interactive communication. The existing advertising is not point-to-point mode, but the master-slave mode, more like the teacher to the students (RTB before the students run, the teacher could not grasp; RTB after the teacher caught students, a fierce irrigation); Point to point the equivalent of a student telling the student (the user tells the user), no teacher (The Advertiser) is present.

The first huge change in the big data age is to turn Peer-to-peer into a Html5, which is equivalent to peer-to-peer applications on a technical level. In the future, the application of mobile Internet can be like Word-of-mouth transmission, the induction between each other, resulting in the trend of pan advertising. HTML5 is equivalent to destroying all the dams of the reservoir (the analogy of operating systems, clients and even platforms), so that the Web application itself has a topological connection to itself, just as a terminal does not go to the server and is associated with itself. Blogs, microblogs, micro-letters, etc., are just the fashionable preview of this wave in the original stage. These are from the media are leading to "ad".

Without dams to organize water, will water be overrun? In other words, without an intermediary, advertising is not a mess? No, the semantic web is planning a way to apply self-organization, which I call application sensing, that is, between Web App and Web app, as long as the meaning of the meridian, can be like telepathy, self-organization, self coordination. SNS is the rehearsal of this change. We have seen the law, the Small World Network reflects this obvious law, such a rule in this kind of centralized organization form, play the past only rulers, agents can play a key role. Future advertising, but also real time, but not RTB, but Tre (real-time everything). It emphasizes the precise collision at this time and place, and gathers quickly, and speed up the match.

Advertising will not be a mess, but also to the more accurate direction of spontaneous evolution. Because there's a lot of data.

Precision is not accurate, for large data, not satisfied with just locking people lbs can also be locked into people, and payments can also be locked into people whose real strengths are the ideas that can be locked into the minds of those who are lbs, paid, and RTB locked in the local focal point with this. To put it simply, it is to realize the precision from the person to the human heart.

In this process, the network advertisement will take place from 1.0 to 2.0 leap, this is both the opportunity, is also the challenge.

First, the World Wide Web itself is upgraded to a semantic web, which radically changes the living environment of online advertising. The existing World Wide Web and television, street and other advertising environment, are encirclements a bustling place, relatively concentrated ads. The semantic web uses the way to add tags to the content, which is equivalent to breaking boundaries within and outside the advertising screen. If you can imagine such a thing happening, you will understand what it means to break the boundaries: You walk down the street, you bow your shoelaces, you find the laces are broken, then suddenly the bricks in front of your feet are lit, It shows you 50 meters to the right. The first counter has shoelaces with your shoes. In fact, the semantic Web makes every web page a smart advertising brick. Advertisers must adapt to the transition from centralized to discrete.

Second, the existing data is concentrated in the data center (such as data platform) to calculate, this central computing model is still the traditional model, compared to 2.0, real one-to-one precision ads can not be done in this way. One might say that one-to-one is just (to a certain extent) metaphor, the real one for an online marketing can never be economically realized. Wrong, this is only a unilateral conclusion of the central computing model. If you take into account the ubiquitous semantic web, including the fact that it is moving, a dramatic change in data analysis may be a shift from a central computing model to a local computation. That is to say, everyone's mobile phone may become autonomous computing center. The most core calculation of advertising may be done at the center of the site. You may touch my forehead to see if I am feverish or babbling. If so, I have to say that the money will be waiting for your offspring under the age of 12 to earn.

What is the difference between our offspring and our practice? Their big data is the two point calculation (local + center calculation), not our little calculation (center calculation). An example is clear. For example, take a question to test our two generations: subdivide to the number of bars to sell coffee, advertising how to play? Our generation may answer this, we from the data center calculation results, the customer divided into 10 of a class, 40 pack of a class, separate advertising; a little improvement, but also can calculate the regular buy 40 of the person, activity law is what, give him a RTB Our offspring may not think at all: their idea is probably to lure customers to open (local) mobile phone chick in (the privacy protection is very strict at that time), Open coffee data for 0.001 seconds, according to each individual mobile phone private cloud unique data calculation results, directly to tell you, I know you, is 17 of coffee regulars; you, have a meeting this afternoon, and 5 o'clock in the morning to sleep, need 2 espresso to send you a only one person's ads. Let a product of advertising, for everyone's content is not the same, this super problem, only 0.000001 degrees of cost of electricity to achieve easily.

Japan's Nomura securities analysis of this trend, identifying this is called "reversal of production" trend. It means that in the past, our economic process has been based on the producer as the starting point and the consumer as the destination. In the future dispersion mode, the consumer becomes the starting point and the producer becomes the destination. For large data, for advertising, production reversal will lead to the emergence of new advertising head-foot inverted. We don't know what else is going to happen, maybe the push technology will become rat, the advertising company based on the client server will collapse like a house built on the beach, and advertising based on pull technology will become a new fashion.

The prospect of reconstructing network advertising business model

Again, here as a reconstructed object of the network advertising, but also not outdated, accurate, still need to happen in the next two or three years, to fashion. The reason why they are in advance is to help readers to see dozens of episodes after the big finale, good psychological preparation in advance, but also to miss the current net fish, predicting the future.

As said above, the future of the core direction of advertising changes, from now everyone to see the same content of advertising, as everyone to see the different content of the ads. The semantic web is important because it makes content, from dead (unmarked), to living (marked). From hard to make sense (not intelligent), to become easy to process the meaning of (wisdom). But the semantic web is just technology. The productivity of cattle, but also rely on commercial help landing. Where will the impact of large data on the online advertising business model end up? We might as well imagine, let practice to carefully verify.

Advertising in the final analysis, the thing to do is to recommend. Consider the changes in the business model, first from the root to think, the same is to do the recommendation of this matter, what better way. In the past there was no condition to think, now with big data and better tools and means, we can change the way we do things. At least think about what the new concept of recommendation may or may be.

From the advertising industry is too busy to jump out of the state of the head, jumped to the outside of Lushan to think of advertising, it will inevitably find advertising this matter as a recommended activity of the inherent shortcomings. We observe nature's referral activities and find out what people really need when they accept the recommendation. In contrast, there will be some clues to the future business model closer to the consumer. Sometimes, the wife may feel that these are not problems, or problems but never solve, but with large data, who knows? Don't let the money run away before you understand it.

First of all, why are only 1% of people busy advertising, not 99% of the people involved in advertising services? The real meaning is: why is the advertising recommendation always the producer guidance model, why not let all consumers participate in the recommendation?

For example, an analysis of a girlfriend on the arm of another girlfriend pick clothes this common scene. If we think of a girlfriend who helps pick clothes, it's an ad service. Her role includes at least two functions that cost less advertising companies: First, she is introducing product information, which is the basic product of advertisement, its property is the media function; second, she is helping his girlfriend to make decisions (consultation), this is the value-added services provided by advertising, its property is the channel function. They are both one-to-one and accurate, and therefore high value-added.

The American it Queen Dyson, in the masterpiece "The 2.0 Digital Age Life Design", had the above to help others pick clothes girl, called "Lifestyle designer". There will be thousands of such freelance jobs in the future. At that time crowdsourcing mode has not appeared, advertisers are not able to organize such a wage-free life designer, to join the industry of the recommender. The future, into everyone's time, no organization of organizational strength, will be output reversal of the way, the consumer organization, into 2.0 of the ads. In this model, advertisers earn mainly not media money, but business money. In other words, he used to think that the Internet was just the media (earning advertising) and could be used as a channel in the future (earning service fees). To the half of the internet, schoolwork back.

You can't speed up a small-grown little companion for every street shopper, by using crowdsourcing to find the most suitable lifestyle designer for her in the Earth village. It can be seen from the concrete analysis that the realization of this model depends entirely on the large data. For a strange lifestyle designer to recommend a project to your customers, the designer needs to know how this customer differs from other customers. The local computing of the mobile data Semantic network, which we mentioned earlier, can provide sufficient data support. The future advertiser to do in the business model of the work, is to build and customer local data collection and analysis platform, and with many lifestyle designers interface of the crowdsourcing platform docking.

Second, why only 1% of companies advertise, 99% of companies do not advertise. This is the last question, turn to ask. The existing advertising business model, because it is a centralized model, the biggest commercial flaw, is the loss of 99% dozen advertising businesses. 99% of companies are eager to advertise, where do they see it? Some of them, all day in the Telegraph poles and station card stickers Dogskin, and with the city of urban management of the arduous battle. If there is no strong desire for advertising to support, it is impossible to have such a near climb snow-capped mountains of the momentum of the grass.

However, these 99% companies do not want to go to CCTV ads, their minds of the ideal media, should have some characteristics of the telegraph poles. The next generation of network advertising, is to imitate the same dispersed degree of distributed, in line with HTML5 characteristics of the "telegraph poles." For example, Japan has 60 million users, accustomed to the two-dimensional code of the advertising format. As long as a simple brush action, the whole process is completed. I look at the photos, and some really put the two-dimensional code in the shop door of the Telegraph pole. Content estimate is: Come on, right two door, So-and-so discount. Of course, don't really confine your thoughts to the telegraph poles. For example, can also innovate a form, each counter on a button, imitate my second artillery units launched precisely guided "missile" coupons, the lbs-locked 50 meters range of target customers mobile phones, for directional launch. Behind the lesson is that the phone carrying the number, was detected by the system cookie before departure, has been online search Adidas a new price, and that one is now lying on your counter in the third row of the second lattice.

Because of the limited space, can not start to talk, but only from the limitations of these, we see that the current network advertising, the development of space is still very large, because they put 99% of the money to throw away the space. With the development of large data, the money will be picked up by the next generation one by one. At that time, people will know more clearly about the truth from precision to recommendation.