Mobile video market estimated 1 billion yuan: Archie Art preemption Mobile End

In the video site is still not profitable now, more video sites, has been the future of the point of exerting emphasis on the mobile end. and preemption mobile end, has become the major video site Gongchenglvede focus.

Archie Art CEO Gong to this newspaper that since 2012, Archie Art at the mobile end of the flow began to soar, compared with the same period last year, nearly 10 times times. He expects 2013 to be the year of commercialization of mobile video sites, and advertisers are expected to divide nearly 1 billion of the pie in the mobile video field. To this end, Archie Arts side in Gongchenglvede, while still in the cloud, the technical field of emphasis laying, to bet 2013 years of mobile advertising market.

But in the case of a video-site profit model that relies heavily on advertising, revenue 99% rely on advertising love Qi Yi also frankly, in China, the payment domain and the bottleneck of piracy, will be to a large extent to restrict the video site, whether on the mobile side or PC-side development, and this is Archie art in 2013 to solve the problem.

1 billion market

From 2011 to 2012 This two years time, Gong witnessed the Archie art in mobile video end of the explosion of traffic. At the end of 2011, Archie's traffic accounted for less than 4% of the total flow at the mobile end. In the summer of 2012, the proportion reached 15%, and by December 2012, the data were 28%. At the same time, the traffic on the PC side of the video site is growing, but Gong says its growth rate is far from moving, "the flow of our mobile terminals has increased nearly 10 times-fold over the past two years and is expected to continue for another year or more." ”

Mobile video is already the next key business for those video sites that have not started making profits on the PC side. With the increase of traffic explosion, the monetization of mobile video has become the subject that gong has to study.

Leisure time, Gong is always looking at Facebook's profit model, which is being aggressively laid out on the mobile side, "when Facebook first came on the market, someone prompted investors to say that its traffic is moving quickly from PC terminals to mobile terminals, and FB is not the same as ours, we are now both PC terminals and mobile terminals rising, Facebook has shifted the flow of PC terminals to mobile terminals, but the monetization of mobile terminals is now a question mark, and the ability to monetization is not entirely certain. ”

However, in the current three areas of the internet's fire, mobile internet, video sites, E-commerce, these three models have never been rid of the shadow of burning money, in the PC side are still few profitable video sites, in the short run to profit, it is really difficult. In the current revenue structure of Archie Art, 99% of the revenue is based on advertising, and 1% is paid by users.

Gong that, like PC video, advertising is also the savior of mobile video, "If an advertiser or a big advertising company, in the end of next year for budget, especially for a class of media budget, such media will not be a small share of the share." But when it comes to budgeting, it's not going to work, it's in a mobile budget, and it's not going to be a very large medium for revenue. ”

And mobile media, in the eyes of advertisers, has always been in the absence of a fixed budget, but this phenomenon is changing as the market attaches importance to mobile terminals, some advertisers are starting from 2013, for Mobile Media Media Reserve a certain amount of advertising funds. What Gong knows is that a large enterprise has made 1% of dollars in budget for mobile media in 2013. "Why 1%?" Because companies do not know how to use this 1%, but just feel that the mobile media is unstoppable, leaving a little money. This means that mobile media have been very fragmented and very small in size over the past many years. However, because mobile video has been completely multiple-screen, advertisers will not only move the TV budget to the PC screen video, but also move to the mobile screen advertising budget, which is particularly important. "Gong said.

In the past video ads, television has always been the largest share of the budget, 2012 Chinese advertising spending more than 652.8 billion yuan, of which, television media advertising still accounted for the overall advertising spending more than 80%, that is, the amount of more than 400 billion.

According to the Q3 of the December 2012 China Network video advertising market share, the third quarter of the Internet video market advertising revenue of 2.64 billion yuan, the chain Rose 37.4%. One of the best cool potatoes accounted for the largest, other including Sohu Video, Archie Art, Tencent video, including a number of video sites share. "I estimate 2012 video advertising market share has 80多个亿, this refers to is the advertiser's pay, does not refer to the video website income, the video website income should remove the agent expense, eliminates the tax and so on." In 2013, I estimated that the market share of video sites was around 14 billion, to 15 billion, of which about 1 billion would be dropped on mobile video. "Gong said.

Archie Art Layout

Preemption Mobile end, has become the 2013 major video sites are Gongchenglvede focus. It is understood that Archie art currently mobile client installed capacity has reached 100 million, and gong also known as Youku potato only a lot. Thunder to see up to now, the ipad end of installation 14 million, the iphone version of the installation of 11 million, Android version of the installation capacity of 14.4 million.

Gong Introduction, 2013 Archie will be in the mobile end of the increase in investment.

"We define Archie Art is a media-oriented technology company, the direction is technology and products, such as Jianyun, CDN, in the terminal development of a variety of applications, so that users have a better experience." "Gong said.

And in the advertising system, Archie Arts also need a lot of engineers to do development. "Because to chase people rather than equipment, to have a precise positioning, if a movie, users with three terminals to read, advertisers will not recognize three devices is three people." We need to use technical means to determine a person a day with a few devices, people and equipment separate, this is a statistical probability of the problem, the more accurate the better. "Gong said.

Thunderbolt look at the CEO Liu Feng also said to this newspaper, the current Thunderbolt look has been with a number of third-party monitoring agencies, real-time understanding of user needs and dynamic, in the era of large data, Thunderbolt also attaches great importance to the data on the thunderbolt to see the guiding role of products.

In addition, Archie will be open to devote a lot of energy to the cloud to do development, "because mobile end with WiFi or 3G, low bandwidth, and is moving state, the requirements of the cloud higher, so to build more IDC contacts, adjust the algorithm, so that users see more smoothly." The mobile terminal's screen is small, the transmission speed is slow, therefore wants the low code stream video to see more clearly, needs to do more technology development in the cloud. "Gong said.

And in the content of procurement, Archie Arts will also increase the intensity. Archie before the content of copyright, about half, is a mobile terminal copyright, and from 2013 onwards, Archie all procurement content with mobile terminal copyright, and this is the industry trend.

For Archie Art, 99% of the income now comes from advertising, and 1% of the revenue comes from charging users. In the user pay, Thunderbolt walked in front of the industry, according to the Thunder CEO Shenglong to this newspaper, the Thunder this year is expected to reach 1 billion yuan, the revenue of nearly 70% are paid by the user contribution. And Archie has always wanted to make breakthroughs in the area of user pay, but the problem of payment barriers and piracy has been restricting its growth.

The bottleneck in the payment area is mainly in the monthly subscription rate, the payment of foreign pay TV program is usually a monthly subscription, the user registration from the second month automatically deducted from the bank card charges. But in China, there is no such business model between banks and internet companies, although it is a monthly subscription, but each month requires users to pay separately again, which is much lower than the automatic deduction fee. "Abroad, I get a continuation rate of more than 90%, but we do this every month to manually redo the online payment of the continuation rate to 30%." "Gong said.

In addition, Gong also believes that the Chinese film is usually the upper house line four weeks, Hollywood movies usually four months later, in order to find genuine video online. The deep users of these films are basically taken away by the pirated market, combined with the cost of payment and the higher overall cost, so there are very few users who can actually pay online and watch movies. So in the short term, the profit model of mobile video can only rely on "savior" advertisers.