The big penguin "Bone Change": Learning to earn ads on Facebook

Source: Internet
Author: User
Keywords Facebook facebook advertising fee
May 18, Tencent finally gave itself a deep penetration of the spinal cord "orthopaedic surgery."  It turns out that the complex number of letters and numbers of lines of business no longer exist, replaced by today's internet industry is the "six business group" and a power company. Naïve's QQ penguin has grown into a "raptor" that no one can ignore for 14 years. Some "big business diseases" such as large staff, complex management and overlapping lines of business are beginning to emerge.  So, the second change began after the venture. The new structure "very 6+1" "Bone Change" after the company's organizational structure from the original eight business system line into the six major enterprise group system and an independent subsidiary.  This kind of "6+1" classification just right should be under the Internet 6 kinds of mainstream business model, namely swims, SNS, wireless, network media, search, electricity merchant. Tencent explained that the reason for the reform is the company's growth and market structure has changed. 2005 after the first reform to 2011, in just 6 years, Tencent to 28.5 billion yuan revenue and more than 10 billion yuan net profit to become the most Chinese internet companies.  The latest report in the first quarter of 2012 showed that Tencent's gross income was 9.65 billion yuan in the 3 months to 2012, up 21.8% from the previous quarter and 52.2% per cent over the same period last year. Looking back at last year's annual report, Tencent revenue is still growing 45% year-on-year. However, Tencent's operating costs and spending rose sharply in the reporting period from 10.1 billion to 17.1 billion, an increase of 70% per cent year-on-year.  Despite the huge cost, the penguin net profit rose 26% to 10.2 billion, but the net profit margin was 35.9%, down 5.4% year-on-year. There are comments that because Tencent's limited resources, and over time, the company's personnel more and more, management costs and communication costs more and more. This versatile expansion has led to a rapid rise in overall costs. In 2011, Tencent in order to meet the expansion of the demand for new staff 7000 people, the scale of staff increased by nearly 50%.  While all-round expansion has brought about an increase in overall sales, it has been too large to pull down profit margins. An anonymous former employee of Tencent said: "Only that this reform has made Tencent's business departments more clear about their responsibilities and relationships." But it takes a while to see if it really works. "The former senior employee, who has become the main head of a network startup project, said," a company with up to 20,000 employees is hard to change.  "After the reorganization, his Tencent former colleague told him that the size of the leadership basically unchanged."  Learning to earn ads on Facebook also on May 18, Facebook founder and CEO Mark Zuckerberg led his company to a successful listing on Nasdaq in the United States, with a market value of $104.7 billion. Facebook's total revenue amounted to $3.711 billion trillion in 2011, and advertising revenue accounted for 85% of its profit margin.  Tencent's main business income is 90% from the individual user pay business. New GroupAfter the formation of the group, which areas will be Penguin's "new" Highland? "Social networking platform should be one of Tencent's key development platforms," Dongxu, an analyst at the social Marketing of Analysys International Research, told China Economic Weekly. "The official data from Tencent show that QQ currently has an active account up to 720 million and QQ space active account is 550 million, which accounts for 55% and 40% of China's real population."  Earnings from individual customers may slow as the "demographic dividend" fades.  Tencent must shift from the original individual user pay service to the enterprise pay business mainly. Before the reorganization, Tencent has shown interest in this vision, Tencent's microblog, QQ space and friends network will be one by one through to form a huge social marketing network platform.  Tencent can touch almost any advertising product, based on a user base covering nearly half of the Chinese population, plus more than 373 million registered users of Tencent Weibo. Tencent Weibo general manager Shongyu accepted the "China Economic weekly" reporter, said that the 2011 micro-Bo and QQ space through the formation of social marketing platform to Tencent brought 100 million yuan of additional revenue. "After the two platforms get through, social ads can be put on both QQ space and Weibo," he said. QQ space and microblogging on the social ads, you can choose to link to the micro-spatial, but also to the QQ zone. In addition, last year QQ space and Tencent Micro-blog to achieve the content of interoperability, but also to achieve access to interoperability, such as the opening of micro-spaces at the same time the opening of authentication space.  He said that the next step is to achieve user management background interoperability, and mainly for commercialization, interactive activities, social advertising display interoperability. In addition to the income from social advertising, data analysis has become a "bonanza" for Tencent. Shongyu, for example, says: "If you work with a power supplier, a company that wants to better understand the overall behaviour of its listeners, or find out what its potential customers are, may be willing to pay for the service if Tencent Weibo can provide more valuable processing analysis to help it find customers.  "With Tencent network media advertising platform product assistant general manager Liu Yan said that is, in the new marketing platform user management interface, advertisers can clearly understand their fan group characteristics, through the analysis of massive data, users can be accurate classification, to achieve accurate advertising matching." Lau, President and senior executive vice president of Tencent's network media group, said to China Economic Weekly: In China, the concept of social socialization is being gradually recognized, China's social advertising began to emerge, the value of per capita advertising is not high, in the global Internet social trends, improve the average income per user, There will be plenty of room. It is a historic opportunity for us to have an agency estimate that China's social advertising market will surpass 10 billion yuan in 2 years. "Another senior executive, Tong Dawsong, president of the social networking business and senior executive vice president of the group, said in an interview with the China Economic Weekly," social marketing is developing and advertising-oriented societyThe Internet value-added services for marketing and individual users clearly have a mutual pull. "such as the marketing activities of brand manufacturers can pull virtual goods sales and so on." "Not only is learning to earn" advertising fees for Facebook, but Tencent is also taking great pains in other areas of business.  For example, spending 231 million of dollars to buy U.S. game developers RIOTGAMES,1.35 billion acquisition of South Korean company Gapstonepartners, a number of gaming companies, a stake in Huayi Brothers and investment in the electricity business. Independent of the electric power, variable flow for the purchasing power is worth paying attention to another point, is separate out of the electric business. Wu Guangguang has served as senior executive vice president of Tencent and President of Internet Business System. Today, his new job is the CEO of Tencent's power-holding company.  The revitalization of Tencent's business, "Albert" fell on his body.  Although Tencent has China's most extensive internet user base, and in the last two years only than Beijing East 2006 years began to layout e-commerce, but, in the years and Taobao, Jingdong, Amazon, when the competition in the platform of electric business, the results are not ideal. This how much and Tencent "do nothing, nothing fine". Analysys analyst Shou sent to the "China Economic weekly" reporter analysis: "Before the reorganization, Tencent's electric quotient framework fully explained this, divided into three layers, respectively, is the Consumer-to-consumer field of the racket, the business of the QQ Mall and by the star of the company composed of the Super network shopping platform." Today, the three are merged. "The company has a more flexible mechanism in the management system and hopes to create greater value for Tencent in the future through capital operations such as independent listing," Wu said in an internal email sent to employees of the new company. "We will establish a set of upstream, platform, flow, warehousing, distribution of the full chain of electric business service system." "Although the electric business industry has been a fresh success stories to be emulated by Tencent, but Tencent after a competition, the improvement is not good."  Wu Guangguang thinks, the biggest problem that Tencent electric trader wants to solve is how to turn a large number of user traffic into actual purchasing power. A group of figures from Tencent's first quarter of 2012 reported that its e-commerce transaction income of 752.8 million yuan, which is Tencent's first e-commerce transactions into the financial results, the more important significance is that this number has replaced the network advertising revenue, to become Tencent in addition to the Internet value-added services revenue, Mobile and telecom value-added services in addition to the third largest source of revenue.  But at the same time, the game of burning money has just begun, the 2012 Tencent E-commerce transaction costs as high as 732 million yuan.  Wu Guangguang said that in the future, Tencent will bear more and longer losses to the proprietary business, and he has enough psychological preparation. In this vigorous reorganization, a word has been repeatedly mentioned: "Small company Spirit", that is, passionate entrepreneurial spirit.  The power quotient's independence may coincide with the temperament demand that Ma craves. In his letter to employees, he wrote: The basic starting point of this adjustment isAccording to the properties of each business, the formation of a series of more focused business groups, reduce unnecessary overlap, in the business group to give full play to the "small company" spirit, understand and quickly respond to user needs, to create excellent products and user platforms, and to provide better opportunities for colleagues to grow;  Each business group can share the basic service platform and create the integration service value to the user, and strive to fully play the integration advantage under the "one Tencent" platform. "The reality is to avoid internal competition and overlap and encourage innovation," said a researcher in the IT field close to Tencent. He believes that Tencent has "Chaoshan people" style, "grounding gas, that is, in-depth products and users." "While this is one of Tencent's core competencies, it cannot support real innovation because of its long" grounding "," he said. "Perhaps Ma Teng expects its penguins to grow fast, but not just bloated," he said.  Because penguins themselves may also understand the truth: the bigger the company, the more successful on the road before, the harder it turns. At the time of the 2005 organizational adjustment, the Chairman of Tencent's board, MA, issued an internal mail (excerpt) to all staff, the company has only more than 2000 people, after seven years of rapid development, Tencent's staff size is 7 times times that year, many BU's size is greater than the size of the entire company in 2005, And more colleagues are expected to join. When the team size becomes larger, it is easy to breed some big business problems. How can we overcome the big business disease and build a world-class Internet enterprise? We need to change from "big" to "small".
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