Moving end to turn the gate

Absrtact: The controversy over whether to profit is over, now consider is when the profit bear burn money notoriety years of video sites are given a succession of profit schedule: Sohu Video is 18 months, Archie Sword refers to 2014, potato President Yang in the newly appointed after the first

"The debate over whether to make a profit is over, and now consider when to profit"

Saddled with "burning money" notoriety for many years video sites are giving a profit schedule: Sohu Video is 18 months, Archie Sword refers to the 2014, potato President Yang after taking office for the first time, the group has hoped that the potato profits as soon as possible.

While talking about the "profit issue", we still hold the pipa half cover, do not forget to add "strive for", "possible", "hope" such wording, but compared with the past "temporarily do not consider profit", "there is no profit timetable," such as the official statement, this clearly has taken a big step forward.

In the eyes of each video site, they have at least three gold mines to dig: Mobile, two or three, and homemade. In 2013, a video site's lucrative battle is under way.

Moving end to turn the gate

First to do large-scale, and then consider the transition, this is the Internet business has always been the logic. In the eyes of video sites, the bottom line of the mobile-end traffic has appeared at the end of last year.

March 1, in the latest release of the 2012-year Q4 report, Youku Potatoes revealed that the mobile end of the average daily broadcast has exceeded the 100 million mark, PPS chairman Zhang Hongyu also said to reporters, "to the end of the last, mobile traffic has accounted for the total of 1/4, in the future, the mobile end of the flow is bound to exceed ”

"The mobile terminal is our second shot of blood. "For the commercial value of mobile video, PPLive CEO Tao had this assessment.

Snowball financial analyst Lee said: "Users have been accustomed to watch a few 10 seconds of ads on the computer to watch the video, so the video site does not need to be like other apps as to how to create a location in the small mobile phone screen to plug ads." PC-side profit model can be copied to the mobile end. “

At present, Archie Art and video of the mobile end of videos, have appeared in 15 seconds of the patch ads. Industry leader Youku Potato Group also announced the latest 2012-year Q4 earnings, the first to analysts, said, "The commercialization of Mobile end in 2013 Q1 began."

Although the PPS has not yet started the mobile end of the transition, but Zhang Hongyu is also quite bullish on the market, "mobile end of this year has a big change, is that there are a lot of third-party monitoring companies in how to monitor the mobile end of advertising to make a mature product, the obstacle to clear away, the rest is only a matter of time." ”

Previously, because advertisers in the mobile end of the same as on the PC, through the tracking of cookies to monitor the actual broadcast of the ads, so a large number of advertisers on the mobile side of the advertising concerns.

But at present, the price of several sites from test water, the mobile end of CPM (thousands of display costs) even higher than the PC end, according to the industry, some even higher than the PC end one times.

Youku CEO Koo said, "tablet users tend to be more high-end, which is a good market segment, by moving the end, we can also learn more users of information, such as geographical location, which also helps to improve the advertising effect." “

"The price trend is still difficult to say, the end will be determined by the market, but mobile advertising growth will certainly be faster than the growth of the PC end of the year, because the model has matured." In the next year, including PPS, all video site mobile advertising will develop quickly. "Zhang Hongyu said.

A homemade program with exerting force

All along, video sites are quite envious of television stations, the same is for the audience to provide video services, their long-term trapped in the profit of two words, the television station has been not worried about eating and drinking.

A veteran broadcaster told reporters, "Well done TV stations, net profit margin can to 30%, although the video site this two years of great strength, but actually did not really shake the foundation of the television station." Especially in the eyes of first-line TV, video site ads are not enough. ”

So what is the real lifeblood of the TV station? For first-line TV, the most lucrative is the naming and implantation of homemade programs. explained the above.

At present, the first-line TV's homemade program, the title fee is usually in tens, such as "Day Up" "The Sound of China" such a star program, the title is more than billions of dollars. Jiangsu TV's "Non-interference", the 2012 advertising revenue as high as 1.8 billion, this figure coincides with the combination of cool potatoes 2012 year after the advertising revenue is quite, homemade program of the strong absorption of gold, can be seen.

In fact, in the homemade program, the video site has begun to exert full force.

Koo said, Youku is currently among the top ten variety shows, already three are self-made. Archie Art editor-in-chief Gao Jin also told reporters at the end of last year that cyber-self-control was getting out of the "shoddy" era, and that advertisers had started experimenting on homemade programs.

In order to strengthen self-control, last year, the video site also began to dig a large variety of traditional television stations, Archie Art last year to the end of the CCTV for 11 years, the moderator and producer Ma as chief content officer. Tao also said, "We have built more than 80 content creative teams in 2012 years and plan to take 13-14 new programs this year." ”

"Self-control does help the site to form a differentiation, reduce the excessive reliance on the upstream copyright party, but from the point of view of commercial change, it is not so easy to achieve a substantial breakthrough." "The broadcasters are more cautious about the future of online-made programmes," the spread of both the range there is not a small gap, the TV program is not only on TV, but also because of the various sites bought to enter the computer screen, mobile screen, pad screen, can be said to be the entire channel coverage, Online-made programs are largely limited to their own websites. "In his view, if the spread of the surface can not be a qualitative leap, the attractiveness of advertisers will be very limited, even if willing to try, will certainly not pay a high price."

Sinking to the two or three-line city

But for the video site, there is a gold mine is the two or three-line city advertisers.

For many non-star terrestrial television channels, the local advertisers are their biggest gold owners. Local real estate business, car dealers and FMCG, medical, educational enterprises, are the main force of local television advertising, and these advertisers are still rarely involved in video sites.

This year, a number of video sites in the sales channel to the two or three-line city sink, began to set up offices in the local, potatoes even opened up the city channel, on-line local comprehensive arts, news, dialect programs. And one of their big advantages in lobbying local advertisers is that online advertising is too cheap compared to TV commercials.

The results of Youku potatoes show that they currently have an average of 1.5 million for each advertiser. A person familiar with video advertising sales told reporters, "in the video site, 1 million of the list is already a large list, but in the TV station, 5 million of the list may not even get the discount, the two are not a price system." ”

The problem is that while it looks like the ads on video sites are much more cost-effective, is it cheaper to get customers?

Lee that the actual difficulty is still very big. "This may also require a very long market education process, and has been accustomed to advertising on the network of large brand customers, two or three of the city's advertisers, many are still accustomed to watch TV after 50, forums, they still have the effect of television advertising more recognition." "In Lee's view, marching to the two or three-line city will test the team's ability to perform well."

And the people in the broadcasting industry said, "There are many advertisers favor local television stations, in addition to see the effect of transmission, there are other considerations, such as the investment to distributors, suppliers look, show their brand value, fight for bargaining power, or buy a security, to avoid their own negative news in the local media. These are the unspoken rules of the advertising industry. ”

However, in spite of the price system and the number of advertisers, the video site in the short term to catch up with the TV station is not realistic, but in the copyright price drop, bandwidth technology upgrade, such as multiple positive stimulation, video site profit expectations have become more and more strong.

In the 2012-year Q4 earnings of Youku, although the net profit column remained a glaring negative, the year-on-year loss was again sharply narrowed by 43%. "Whether it's profitable or not, the debate is over, and now you're thinking about what time it's going to be profitable." "Lee Evaluation Way.