The electric business enterprise bids up the advertisement price

Group Purchase website, electric Dealer website, classified information website advertisement "hit Money Show", is getting more and more crazy. Into the 2011, these enterprises to get huge investment in advertising, the amount of money is easily calculated in billion. However, blindly "gouging" the consequence is that the advertising fee rose, especially the network advertising fee, PU rose more than one times, many other Internet enterprises so complain.

Billions of dollars to hit ads

"Fair, I have a little donkey ..." "Big Mouth" Chen Yao Sing out of this sentence advertising words are now everywhere can be heard, the overwhelming advertising behind, is a huge investment, it is said that net investment is 400 million. The same generous also has the group purchase website, according to each big group buy NET announces 2011 the marketing expense, the American Regiment's advertisement budget is 130 million yuan, the glutinous rice net wants to take 200 million to advertise, the Regiment treasure Net is will this year's advertisement budget append to 550 million yuan ...

The public comment network related personage tells "it Times" reporter, this year the populace reviews the net to develop the group buying market wholeheartedly, will in the national 20-30 cities layout buys the business, needs to carry on the large-scale brand promotion, takes out 2.3 billion yuan to carry on the brand promotion is very natural decision-making.

Crazy price "blow big" advertising cake

"Portal sites, search engines, Web site navigation, video sites and so on online media, advertising is rising." "A Y group CEO Huang Zhihua on this quite feeling," average increase of at least 1 time times. Huang Zhihua to reporters for example, last year to do one months of marketing, comprehensive advertising costs may need 1 million yuan, but this year even if 2 million yuan may not be able to win.

Wave Gold CEO Zhou will benefit from the media divided into three categories: portal site brand advertising price rose quickly, search engine hot keyword rose more than one times, URL navigation class price is huge. "This year, Sina, Sohu and other portals, to the electric business enterprise advertising price rose at least 25%-30%." 56.com vice President Li told reporters, one of the biggest gains is Phoenix, price directly doubled. According to another anonymity of the website owner said, the establishment of the 360 group buy navigation "gold absorption ability" is also quite amazing, the home page is included in the group purchase site, the monthly payment of advertising fees in 6 digits above.

"Internet advertising this year is more than 30% per cent higher than last year." "Li a simple estimate, the total amount of advertising on the video site is more likely to rise from 2.3 billion last year to 5 billion yuan this year."

"High-quality media resources on such a few, advertising is limited, the price has become inevitable." Shou, an international analyst at Analysys, predicts that by 2013 China's online advertising market will reach 91.246 billion, up 48% from 2012.

The "arms race" is too unbearable for companies

"The advertising price is too high by the electric dealer," Jia Yuan CEO Gong (Weibo) complained to reporters. "Crazy" advertising, "crazy Rise" of the advertising price, so many internet companies can not afford, Jingdong Mall CEO Liu (Micro Bo) announced in 2011, cut 50% of promotional costs, and more enterprises are forced to challenge. A close to 58 people with the city revealed to reporters, net giant cast 400 million yuan to hit the ads, 58 with the city's CEO Yiu Jingbo (Micro-BO) obviously feel the pressure. Yiu Jingbo also confirmed to reporters that this year will also increase advertising investment.

"Every day I have to get a lot of phone calls from advertising agencies, and I've never received a phone call like this before. They open their mouths, which one of the group buying sites are advertising in their place, why don't you fight AH. "The owner of a group buying site is very helpless.

But in the advertising war, rarely see the figure of the Y group, this is the only one of the capital from Shanxi merchants of the site. "The electric business enterprise and buys the website in order to be able to finally go public, took the large sum of wind to invest to do the market to promote, to some extent, is the VC ' forced ' them to advertise. "It is clear that the Shanxi businessmen who are famous for their prudent investment will not allow Huang Zhihua to" Burn the money "," we intend to put a moratorium on advertising this year, avoid the limelight, and invest the money in the national layout. " ”

From the internet to the front

Prior to this, most of the commercial website of the advertising campaign only on the internet, such as Baidu keyword, Sina home page ads, website alliance and so on. However, the crazy price of internet advertising, so that the electricity business CPS (pay by the effect) rising costs, and such promotion may not bring a valuable return, as the group purchase site products or services homogeneity is very serious, user loyalty is very low. Obviously, the electric business enterprise needs not only how attracts the public eyeball, how in the intense competition, can obtain the effective flow and the order, but also can in the brand image and the cognition enhancement first pulls the top, is the key. So the outdoor advertising and other online media will become "sweet meat and potatoes."

The public comment network related personage discloses, their advertisement budget this year, all throws in outdoor advertisement. "Starting this year, the number and amount of ads on our media are rising," he said. "A number of relevant sources, such as regiment Treasure, handle, glutinous rice, 24 coupons, litters Regiment, Fair, full, F Group, the public comment on the network and other first-line group purchase site ads in the media have put on, and the amount of money in tens of millions of levels.

Reporter comments

To remain rational in the face of capital

Take money to hit advertising, improve visibility, to other competitors to create barriers to entry, it must be these electrical business enterprises hit the "wishful thinking." Ready to take 1 billion yuan to smash the market where the CEO aged (Micro Bo) is not just say? Have always been rare for the expensive, is to promote the threshold of advertising. "But a few billion ads hit down, the effect is really so good?" In fact, we all know that this is a "face familiar", really want to let people in their own website to buy things, the final spelling or product price, quality and service.

But the wind can not afford to wait ah. Since the purchase in China, those with a large number of dollars to come to China, hoping to find a second "Groupon" VC, the domestic group buying site development speed also gave "Groupon" type of expectations, as soon as possible to occupy market share, as soon as the listing. You know, the originator of this year's IPO, estimated at 15 billion to 20 billion dollars.

However, the imitation of the Chinese people quickly let the Hundred Regiment war into a Thousand-regiment war, and the industry's common voice is that the competition period of one year, after a year, at most only 10 group buy can survive. This VC certainly anxious, who does not want to become this one-tenth? So the Thousand Regiment war into "burning money war", those who just "born" more than a year, even only a few months of group buying site, get the speed of investment simply let other sites envy envy hate, and the speed of money is like "flowing".

But is this a quick buck? Ask, how many take the investment of the site Mister Night to sleep? How many originally profitable group buy site, now in order to expand the scale, in order to spread popularity, now basically belong to the loss of state? How much traffic is the revenue from advertising?

If the founder of group buying site for capital, can be a little more rational, less sensitive, perhaps these problems are not a problem.