The barriers to location-based advertising are very high.

Abstract: When writing this article, my mood is contradictory. Today and an internet advertising big guy to eat, he has done more than 10 years of internet advertising, the industry insights I admire. The man's language is amazing, he thinks most of the market moves

When I wrote this article, my mood was contradictory.

Today and an internet advertising big guy to eat, he has done more than 10 years of internet advertising, the industry insights I admire.

The man's language is astonishing, and he thinks the vast majority of mobile advertising companies on the market are not doing much--we all know that dozens of mobile advertising companies such as Anwar, UNITA and easy media are all in the fast race enclosure.

Most of these mobile advertising companies follow the AdMob model of Google, which is a proxy for ads in many apps. Put the advertisers ' ads in these apps and show them, then split the money.

The core of the business model of these companies can be understood as to keep the money to buy the flow, and then to build their own traffic. The abacus is, one day, I am the eldest, I can monopolize the flow of these apps, I will be very powerful. But the reality is that the market is very competitive. In the PC era, there are many network advertising companies play the same pattern, but the flow is constantly rising, never someone exclusive traffic.

However, the entry threshold for this type of mobile advertising is very low, the market quickly into vicious competition, the price war continues to play, most mobile advertising companies are currently in a loss situation, holding the money in the wind to burn.

The old man thinks, the current admob mode, and PC advertisement does not have the essential difference, but the handset screen is small, the display efficiency is low, this pattern, is doomed not to be too big.

Then whether mobile internet advertising is not a big imagination space?

The most valuable mobile ad in the future will be lbs (location-based) and O2O (offline to offline) advertising.

The barriers to location-based advertising are very high:

First of all, it needs to have a large enough advertising resources, small to restaurants, clothing stores, to become its advertisers, to be efficient. LBS ads also require very large traffic. For example Fangyuan within two kilometers, the person holding the handset, the best is your target advertisement audience is good.

So who's qualified to do the lbs ad? Is it a mobile ad company like this? Obviously not, first of all, advertising is too low density, the current mobile advertising companies have a number of advertisers? 200, 500? Too little.

Secondly, the flow is not enough. Today's mobile advertising companies, mostly in the hands of a small number of apps ads, these apps are not enough to cover the majority of people within a few kilometers.

Then, qualified to do this, leaving only the Apple, Google such a big platform, or operators. Google, Apple has both the operating system and hardware, no matter what app you use in its system, it can directly through the operating system to cover you with ads. Advertisers who can work with operating system vendors will certainly not be working with small mobile advertising companies.

Finally, Google, Apple ads will be more and more density, advertising efficiency will become more and more high, this market will increasingly form an oligopoly, there is no other people's opportunities. The Giants are just tigers, and once the Tigers are out, no one can stop them.

Again, operators, theoretically mastering the user many data operators are also eligible to do lbs ads this thing. Not long ago, I went to Japan to visit the president of D2C, Japan's largest mobile advertising company, D2C, a joint venture of Japan's largest operator, NTT DoCoMo and the largest advertising company, to share its core data with him. Japanese operators have recently begun to try to advertise with big data. But it is still being explored.

What about Chinese operators?

Because this business needs advanced resources, only advertisers, the whole business needs to lose a lot of money first. And China's operators have too many easy to make money in places that lose money in business they won't do.