Technology-driven Internet advertising revolution: Let industry change the game

Author/Cai Pei in the high-speed expansion of the market size and flow to the ceiling of the double pressure, every time the ads are accurate to the users interested in the face, is the Internet advertising can play the only card. Even in the controversy, Baidu still uses 20 billion of the revenue from search marketing and display ads to flush out the same media platform as the aircraft carrier in 2012. But this "first marketing platform," the number of Baidu is not sitting for a few days, one-season marketing revenue more than Baidu Ali Bao fasten after, and its overall goal of surpassing in 2013 years within reach. Internet advertising makes television media's first screen status precarious. January 9, Dcci released data that 2012 China's internet advertising market scale soared to 75 billion, 2013 is expected to break billions of billion, estimated to surpass television in 2014. Crazy to put the number behind, is the Internet traffic is the mobile end of the split crisis, at the same time to CPM (thousands of people cost) as the mainstream of advertising resources, so that advertisers more and more feel the difficulty of improving ROI. In the double pressure of the rapid expansion of market size and flow to the ceiling, every time the ads are delivered accurately to their interested users, is the Internet advertising can play the only card, when an advertising positioning is accurate enough, advertising is no longer advertising, but important information. At this time, with AD exchange (advertising trading platform) as the core, "buy the crowd" as the characteristics of the RTB (real time bidding real-time auction) industry chain quietly formed. If you are a deep car control, browsing the major car sites is a must do every day. And one day, you have to go to Sina Sports to see the latest European Cup situation, in your input URL, hit enter the moment, "You are car control" this information quickly conveyed to Ford, BYD, Toyota and other car advertisers there. There is a blank ad in the upper-left corner of the page, and the advertisers will quickly bid for the ad, and finally Ford wins, presenting a video ad for the new Fox. In this way, a RTB ad was completed within 100 milliseconds of browser buffering. "Flow can be directed flow, you can bid, which is undoubtedly the most ideal state." As with stock trading, the stock exchange is the most effective way to allocate resources and allocate assets to the market, as long as the exchange is operating in a standard, the assets will certainly flow to the stocks with the highest return on investment. "Poly Sheng Wan President, CEO Yang Wei said. Ad Exchange is building an Internet advertising exchange, with media resources equivalent to a listed company, a proxy company, an advertiser, and a buyer, which is equivalent to the retail and institutional stock market. In this exchange, the way of CPM is facing the challenge of RTB. Fair mechanism gives advertisers flexible control right inflation also exists in the Internet, Party B has done Shangxiang regrets: a hao123 home ads, 10 years ago to sell tens of thousands of, now sell millions of, the price doubled 100 times times. Advertising based on CPMThe purchase method created the first 10 years of internet display advertising, but it also weakened the entire online advertising industry's ability to perceive challenging changes. Can the new model in the launch overturn the existing mainstream, for advertisers to create value is the only standard, in Shenzhen Electric Shock E-commerce Co., Ltd. founder Shangxiang, from buying traffic to buy people, RTB advantage is that it carries a fair mechanism, so that the media and advertisers are standing in the active position. For the fairness of the media, the impact of a media on the opening of the trading platform is large or small, is to put high-quality resources or idle flow; the fairness of advertisers, in every advertising request, can calculate he should at what price to buy more appropriate. To give advertisers flexible control is the biggest innovation point of RTB. Advertisers are concerned about the extent to which RTB can change the "50% of the advertising budget" law in a fairer trading model. Put aside the accuracy of the user, simply from the procurement approach, buy flow and buy the quality of the crowd difference. For example, the same advertisement in Sina and NetEase respectively obtained a traffic, in the way of traffic purchase, the system does not know whether the two traffic is the same person, if the same person, advertisers need not to repeat the purchase? In the face of this problem, RTB gives advertisers the right to make active decisions. Deep into the user's precise level, most of China's media are selling fixed advertising on a per-day basis, even if you know that the person you are looking for happens to be in a certain media, you can only buy or not buy all the people in the media position, and then consider how to find the right person, advertisers still can't buy the people who are interested in him. Into the user contact advertising stage, a user through search ads found a pair of favorite shoes, and then was led to the shoe shopping site, but on the shopping site users just put shoes into the shopping cart, and did not directly produce the purchase left. Although the purchase did not happen, his selection process has left a mark on the web, through the advertising trading system, regardless of whether the user will visit the shoe site later, when he visited other sites can receive the shoe advertising push, this not only does not affect the user experience, but also to prevent the loss of customers. However, China's advertisers are not ready to accept RTB, data show that only 8% of enterprises have tried to RTB, in addition to some of the overseas market has already invested in the RTB of multinational enterprises, the most sensitive to the conversion of e-commerce companies constitute the main force of Chinese advertisers. Shangxiang at an industry forum in the end of 2012, asked the CEO of the Electric Business enterprise to understand the real-time bidding, "10 9 have not heard this concept." This should also be Yang latitude point of view: "Even today, everyone is talking about RTB, but when you really go to see how big the market, I can still tell you, to this day is a small mess of a market." "Yang latitude judgment, RTB in the whole thing development of the first peak, will soon fall, fall down will be againTo。 Falling down refers to the RTB placed a high hope, after a year to find this. At that time many people will question, said that this market has the possibility of development, the value is not worth to do, when everyone doubts, the market will really rise, because suspicion is a wave of the process of scouring the sand, eliminate the impetuous market. Disjointed chain market needs time to slowly running-in flow in the Internet, as if the ratings for television, circulation for the paper media, and the Internet advertising industry chain is no different from the traditional advertising, upstream is the network media, the middle is advertising agents, downstream is the advertiser. But in RTB mode, this industry chain becomes complex, at least need "network media ad EXCHANGE-DSP demand side platform-advertisers" four roles. Of these, AD Exchange and DSP are the two key links. Ideally, AD Exchange will provide the DSP (demand side platform) with enough traffic space for them to achieve real precision marketing. DSP through the massive data operation, obtains each netizen's surfer data, judges the user attribute, then uses the labeling way to carry on the multi-dimensional classification. Advertisers follow a display or a click to pay, and the DSP enterprises in order to get more clicks, it must be very accurate to find the target audience, which needs to be accurate calculation of the target population. Just as in April 2012, when Google introduced DoubleClick Ad ex-change to China, Google's global vice president, Liu, said at the press conference: "In the past, advertisers have approached audiences through websites, and now they can customize the needs of audiences directly through Google's platform tools." "But ad exchange is just getting started, and most of the traffic is tied to the media itself, and the value is less, making the RTB chain disjointed." At the same time, many DSP traffic is not entirely through the ad Exchange, but within their own control of the resource range, the completion of advertising and media automatic pairing. As a result of this disconnect, the media at one end of the platform on the income is very little, more reluctant to come up with better resources. It is understood that netease through ad exchange advertising revenue accounted for only 0.1% of the total income, the industry is considered to be the strongest Phoenix is expected to be 5 years after 5%. In this sense, it is difficult to replace the traditional advertising network completely, even if it has rtb enough posture. Scarce media resources (media own sales), advertising networks and advertising trading platform three models will coexist for a considerable period of time, while RTB will continue to take a higher input-output ratio to seize the previous two market share. The market needs time to slowly running-in, slowly make its own value. Changing the sales model so that technology can be respected traffic flow, the fragmented media pattern resulted in the inefficient allocation of resources, through the efficient use of resources to waste, is the RTB model of the entire industry ecological chain changes. "Like when a tree becomes a commodity, itwill be divided into different products sold to the most suitable people, placed in the field of advertising is to the entire Internet traffic for the new cut, and then the system matching, the emergence of an ecological chain and the emergence of new patterns, the resulting extra value is very scary, according to our experience, may turn to the current scale of 3 times times. "Friends Interactive CEO Huang said. has launched a private advertising trading platform for Tencent to divide the ads into three categories: gold resources, high-quality resources and long tail resources, which, high-quality resources is a problem, small advertisers can not afford to buy, large advertisers are not willing to buy, belong to the "residual flow." And now the ADX is the quality of resources. On the ADX platform, the high quality resources of the first-tier cities may become the gold resources in the second-tier city's user base, this part of the surplus flow capacity will be greatly improved. "The traffic is huge, but those sites that don't have a strong brand impact may benefit sooner." such as non-line video site of the non-video resources. "Yang judge," These sites previously because the brand influence is not enough, the advertisement cannot sell. But for RTB, as long as I have the flow, I have an audience, advertisers may put money to my site. "And this, it is the United States RTB market can achieve nearly 5 years of composite annual growth rate of 70.5% important reasons." The United States has a lot of small but high-quality network media, the advantages of decentralized resources, suitable for advertising trading platform for integration, clustering and real-time bidding. And China's Internet media concentration is very high, for 20% of high-quality Media resources, advertisers have a high degree of awareness, and constantly increase the purchase. The remaining 80% of the value of the long tail media, can only be small scale effect marketing to find income. Traditional sales, agents procurement flow, the media will have a certain rebate. For example, the purchase amount is 1 million, the media out of which 200,000 in a discount way to return to the agency, as a commission, advertisers to 1 million of the price to buy the actual 800,000 of the flow. In fact, the agency should be charged for the main Advertising Service Commission, if the agency can give advertisers a good service, advertisers will come up with more fees to promote the agency's service capabilities. Huang said: "In the past, advertising procurement, more by the relationship, RTB is a more emphasis on the technology model, through the technical sales change in the advertising of unreasonable sales model, technology will be more respect." "RTB from buying traffic to buying people, RTB's advantage is that it carries a fair mechanism for media and advertisers to stand in the active position."