Technology companies are playing an increasingly important role in the advertising industry

The rise of various new technologies to the advertising industry chain division tends to refinement, technology companies are advertising industry plays an increasingly important role, they like a knife, stabbed into the industry.

Third-party data monitoring companies are a sample of pure technology companies in this industry. "Our presence has made advertisers more agreeable to the Internet advertising market and began to invest more." "Second hand system CEO Wei Wei said.

Second hand system is a third-party advertising technology companies to help advertisers and their agents, network media to evaluate and optimize the effectiveness of digital advertising, improve the return on media investment. Many internationally renowned brands such as Procter and Gamble, Microsoft and Coca-Cola are using the second hand products and services.

At present, the daily average of the second hand system processing data more than 2TB, with an average daily processing 100 billion advertising requests data processing capabilities, accumulated storage, processing data over 2PB. Wei Wei says the second hand system occupies 70% of the market in Third-party data-testing companies.

Independent data monitoring through cross-media advertising effects, Wei Wei that, the advertising category, television advertising is still a start, and the current on the mobile side of the advertising ratio is still relatively low, one because the mobile end permeability is not high enough, and the second is not convincing the standard, all still need to move the development of the end.

The influence of technology companies on advertising industry

"21st century": What is your role in the division of work with 4 a?

Wei Wei: We are a technology company, and 4 A company's cooperation is mainly from the technical perspective to increase professionalism, this point 4 a company can not do, they are in the technical perspective of the development is relatively weak. And we provide the server and bandwidth, to help advertisers do data management, advertisers are to buy our data to 4 a company to use.

"21st century": How do you improve the efficiency of advertisers?

Wei Wei: We give advertisers an annual research on the efficiency of media delivery, such as our largest customer, Procter and Gamble, each year needs to optimize the efficiency of their own media launch. We provide data to enable their advertising agencies to achieve the goal of improving the efficiency of advertising, 10% per year.

Last year we managed the overall cost of advertising is 5 billion, a few years ago this number is 100 million. And since the emergence of technology companies, advertisers have increased the recognition of Internet advertising business, and increased the budget. For example, the share of video sites that account for digital media advertising has grown from 0 to 43%, not from the portal, but from other media such as television, which is a pure increment of internet advertising. This is our greatest value for the development of digital media.

"21st century": When did the advertising industry demand for technology-like advertising?

Wei Wei: It's probably from 2010 to 2011, when the penetration rate of Chinese netizens is over 25%. For example, yes is a technology company, but in the first decade of the 21st century has been not so rapid, late to do the creative and agent, but the industry did not form a large scale. We are also looking at the extent to which the market needs technology. When this industry is big enough, the industrial chain appears the division of labor, the demand for technology companies has emerged. For now, the trend is growing.

Mobile and electric business marketing model

"21st century": from the data you've detected, what kind of advertising model on smartphones has a chance?

Wei Wei: The first Youku and potatoes are doing UGC, the whole channel packaging into a sponsorship, it is because the video market is still very small when there is no way, when the video penetration rate is high enough, slowly adjust to the form of the patch AD. If the video market is still weak in the patch, they can not survive.

So we will see that there is a developing process of advertising on the mobile side. When the mobile end of the penetration rate is small, everyone will see the same industry ads, such as the current is the app advertising each other. When the penetration rate has reached a higher level, there will be some new forms of advertising to meet the needs of outside the industry brand advertisers.

At present the mobile end mainly has the video advertisement, the banner and the text these three kinds of advertisement forms. In fact, most people use the mobile end is read text, some people watching video, because the video site about 40% of the traffic from the mobile side. But this mobile end is not really a mobile end, 80% of people at the mobile end of the video is through the indoor WiFi, and real mobile is different.

Mobile End text Advertising form There is a great opportunity, there is a big gap: we spend a lot of time on the move, but the text-type ads before a good evaluation system. In fact, the strength of the text is stronger than the image, but now the biggest problem in the advertising market is that people spend time reading, advertisers have no way to put money into. How to turn text advertising into a more effective model and evaluate it. Advertisers are willing to spend money when we can prove the most effective form of advertising on the phone.

In fact, our technology companies are also looking at what makes sense when it comes to new patterns and assessments of what's on the mobile side, and it's really important to have the money transferred from TV commercials to the top, but it takes a process.

"21st century": mobile advertising does not grow up and mobile phone screen small?

Wei Wei: We don't mention ads first, but the mobile side does send you a lot of information, probably more than you can get in other places. And advertising is just the information of advertising into this format inside.

But the mobile end of the transmission and television is different, so the form of advertising is not necessarily through the large screen to convey information, content-oriented implantation is the future direction.

"21st century": E-commerce companies are now very competitive marketing, how do you think they should do marketing?

Wei Wei: This business model does not change people's cognitive behavior and thinking mode, but the way of information acquisition is different from the form of behavior expression. All people's perceptions are influenced by branding and habits.

The electricity merchant survives on several kinds, first is the big platform class, the second is already has the brand electric quotient. But it is most difficult to reshape a brand, but also require users to form buying habits, which is critical.

Just like Taobao itself goes through a process of building habits. Taobao, ebay, and ebay competition, they are doing is to allow users to form buying habits, this process is also the process of brand building.

Why is it that the vertical electricity quotient is difficult because of low coverage, it is very difficult for this small number of people to develop habits. You sell a product category, I would like to think whether someone will use your product all the while, in such people can build a brand. If everyone uses you for months in a lifetime, there is no possibility of building a brand. If you can't be a very strong vertical electric dealer, you might be able to get out of the big platform.

"21st century": This is from the category point of view, from other links?

Wei Wei: Each link is the process of building your brand, especially the electrical business more difficult to deal with, because there are too many links: products, marketing, logistics and customer service, the site's user experience, all these factors will affect the brand feedback. And the more the more the possibility of bad, need more energy, must be the whole industry chain to do the best, so all said that the cost of electricity business needs higher.

We provide a complete set of marketing results and data optimization services for our electrical business users, be able to analyze according to the traffic, source, visitor situation and the custom statistic dimension according to the business needs, and support the query according to time and region, and calculate the flow rate, quality, behavior and custom index in real time. and order path analysis and form path analysis. Shop No. 1th, Dangdang, red children, silver Thai nets, treasures nets are our customers.

TV commercials will still grow

"21st century": Now the media form more and more complex, more and more forms of advertising, for advertisers, what is the focus?

Wei Wei: The main thing we want to tell advertisers is that TV commercials are still developing. In fact, China's Internet users have a high penetration rate, but the growth of Internet users is not so fast, people in the concept of consumer media in the change, north wide people's habits and developed countries are very similar, but the vast number of consumers not only in the North wide.

Video site is a weak growth stage, North wide development is very good, other places have no stock. The cost of cable TV is there, I don't have to pay for it every time, but the internet has the cost of bandwidth and server depletion.

The internet penetration rate in the United States has reached 90%, and the development of TV advertising is still very good, although not so fast. And why video sites themselves want to do TV, because the video ads themselves have the limitations of the above. People's time is on the road, office, living room, so occupy the living room is still very important.

Advertisers should see where the value depressions are, and this depression is where consumers spend a lot of time here, but there is no advertising. The advertising model of the audience is not occupied, we are also looking at what kind of advertising is the next focus, but the current television advertising is still important.

"21st century": How should advertisers allocate their budgets?

Wei Wei: Each advertiser has a different way of distributing them. Determine the budget for the target audience, the market, and the budget volume. For example, Yunnan white powder toothpaste, its users may be elderly, so the proportion of Internet advertising is relatively small. But this is just a general example, the process needs to have data to support, in the end what kind of media to meet your product and the dissemination of good results, it is necessary to use data to speak. Do not absolutely, need to according to their own situation to score, not others how to vote I also how to vote.