The inflection point and marketing breakthrough of internet advertisement in China

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According to Iresearch's research data, 2005 China's internet advertising spending reached 3.13 billion yuan, an increase of 77.1%, more than the magazine advertising 2.49 billion yuan. In 5 years, the growth of nearly 7 times, the use of emerging media or auxiliary media to define the network is clearly outdated. The figure is expected to expand to $15.7 billion by 2010 (figure I).

The next 5 years will be the network advertising to mature important changes in the period, how to grasp the future direction of development, and constantly make new breakthroughs?

The seven inflection points of China's internet advertising market

The change of network advertisement market in 2005 not only changed the original pattern and pattern, but also had far-reaching influence on the future. From the perspective of a big development process, we can calibrate these changes as the landmark inflection point of the network advertising market entering into full maturity.

The first inflection point: China's Internet access in the era of broadband network at present, China already has 111 million netizens, although the total population penetration rate is less than 10%, but the number of broadband Internet users has reached 64.3 million (CNNIC 17th report Statistics), accounting for the overall 58% (Figure II). From the national experience of the development of the network advertisement, more than half of broadband users is a very important milestone, it will give the network marketing strategy and application of the form of a very important change, such as customers can do on the site rich media ads, send a large volume of streaming media.

In China, the "broadband effect" has begun to appear. 2005, the proportion of brand graphics advertising fell by more than 8% in 2004, while rich media advertising market share doubled, from 2004 1.7% to 2005 years of 3.6%, a variety of innovative rich media has been constantly developed.

Second inflection point: more advertisers set up interactive marketing department more and more advertisers start to set up interactive marketing department, or under the marketing department to add interactive marketing functions, and more to the agents to seek interactive marketing solutions. 2005, the number of Internet advertising in China continued to increase, especially in the amount of 1 million yuan in the number of advertisers increased significantly, reached 474, 173 more than 2004, increased by 57.5% (figure III).

The third inflection point: Advertising agencies have been involved in network marketing advertising, the main interactive marketing demand and the increase in the number of network advertisers, led the growth of advertising agencies, many traditional advertising agencies have started to set up interactive departments. And the team of interactive agents is growing, at present, in China has been engaged in network advertising agency advertising companies have more than 100, to network advertising agency-oriented advertising companies have more than 20, and due to see very attractive development prospects, some do excellent interactive agents, gradually by the international advertising group's favor , to discuss the possibility of strategic cooperation and mergers and acquisitions.

Fourth inflection point: the pace of application of network marketing in various industries although it, the Internet and telecommunications is still the main industry to apply network marketing, but we also see other industries embrace the Internet's good posture. Competition in the auto industry has been fierce, but the proportion of the budget allocated to the Internet has increased, becoming the fourth-place online advertising spending industry, when automakers began to shrink their overall advertising budgets last year. Financial institutions are also making more use of the Internet to look for potential customers when it comes to promoting credit cards and personal financial services. Even the most demanding FMCG brands are starting to speed up the use of the Internet, take cosmetics, bathroom supplies as an example, the number of new brand customers than in 2004 increased by more than 50%. The fifth inflection point: the way of evaluating the effect of network advertising is becoming more and more comprehensive. A single indicator, such as a click Cost, is used as a criterion, however, which obviously ignores the assessment of most of the users who have not clicked. Now, with the deepening of the understanding and application of network marketing, the whole industry began to evaluate the effect of network advertising more comprehensively (Figure IV).

To NetEase as an example, in order to be able to accurately and comprehensively evaluate the effectiveness of network advertising, in 2005, NetEase in the industry took the lead in the use of network advertising brand after testing research methods to help customers measure the comprehensive dissemination of network marketing activities, and focus on the effective promotion of brand indicators, has in Panasonic, Nivea and other brand customers in the cooperation of the application.

To promote the new market of Panasonic X800 as an example, according to the evaluation method, Panasonic X800 increased the advertising awareness of twice times, New product recognition increased by 3.8 times times, the reputation of the products increased 3.1 times times, the product advance rate of 3.5 times times, fully verified the network advertising to enhance the brand image and sales promotion of the outstanding effect. After the comprehensive effect evaluation of the strategic partner Li Ning brand, it is found that the brand preference of Ning Li has increased by 96.4%, and the brand awareness has improved 76.7%, and the new recognition of "Runfree ultra light Breathable running shoes" has increased by 59.4%. These data fully embodies the Li Ning and NetEase sports channel to create new value, and this value is the traditional flow and click rate can not be explained.

After evaluating the comprehensive effect of the Nivea brand on the network, it is found that the brand awareness has increased by 23.4%, the brand reputation has improved by 39.6%, and the brand usage rate has jumped 51.4%.

The sixth turning point: the power contrast between the network and the traditional media is changing. If we compare the Internet with the traditional media, we will find that the market balance has begun to tilt towards one side of the Internet (Figure V). Print media, especially newspapers, have been slowly reaching a saturation point in the past year or so, with readers showing an aging trend, and even some large newspaper groups ' advertising revenue for the first time negative. Can not say that many of the original plane media customers are flocking to the network media, but there are some print media budget transferred to the network ads. In addition, many companies that rely heavily on TV commercials are also starting to put their TV ads on the internet for playback, which is a very good start, although it is not interactive.

The seventh inflection point: Network advertising industry organization is preparing China Advertising Association will set up an interactive marketing committee this year, with the established television, radio, newspapers, magazines, outdoor and other committees, which fully affirmed the status and influence of online advertising. This industry organization regarding the advertisement form, the contract standard, the evaluation standard and so on will make the guidance and the standard, this to enhance the network advertisement overall service ability, further expands in the entire advertisement industry chain market share and so on, will have the very positive influence.

How to make breakthroughs in Chinese internet marketing

From the marketing point of view, the network has three aspects of value:

The first aspect, the network profoundly changes the Chinese way of life and the communication way, the consumer time no longer all belongs to the television, the newspaper, the magazine Media. As the only child born in the late 70 has entered the ranks of mature consumers, China will have a third peak in history, and the media, which affects the mainstream consumer group, is mainly the Internet.

Second, the higher the audience value, the greater the impact of the network on them. The network covers 71% of China's affluent class, after the television media, the network covers 83% of college students, high in all the media top ...

The third aspect, the network advertisement to the brand each index, including the brand goodwill degree, the purchase rate and so on has the quite big promotion function, but is not only the exposure rate.

As far as the overall market is concerned, the share of online advertising remains small. 2005 China's Internet advertising accounted for the overall advertising market share of only 2.3%, compared with the United States 7%, South Korea's 9.5% still has a considerable gap. Therefore, the most important issue before China's internet marketing is how to break through.

In the turning point of internet marketing in China, in order to achieve greater breakthroughs and jump-type development, we can start from three aspects:

First, the deep excavation of the value of network media, including the value of network media innovation and value integration.

For example, the evolution of the form of advertising is an important aspect of value innovation, with the popularization of broadband, rich media advertising will be widely used, strong visual impact, set audio, video in one of the brand network advertising with the increase.

The combination of network advertising and other network resources is an important means of value integration. Network media is not only the platform of advertising release, but also has a strong participation, can become the effective channel of Word-of-mouth marketing. NetEase combination of different industry conditions and marketing characteristics, the development of "Advertising + Public Relations", "Advertising + forum" and other forms of network marketing for customers to enhance the brand image, promote product sales reached a good effect.

Ii. better formulation and implementation of media strategies the network media and the traditional media are the important components of integrated marketing, but they are very different in the media characteristics and functional positioning. The internet can be used as a simple brand to inform the television media, but if it is limited to this, it may not play a greater role in the value of online marketing.

Although compared to the television media, the number of domestic network users is not dominant, but in the high value of consumer groups, the network media has a high degree of influence, has been seen as an integrated marketing strategy in the important supporting media, only a reasonable arrangement of traditional media and network Media division of cooperation to ensure the maximum marketing effect.

Iii. pay attention to the development trend of network marketing people spend time on the media from television, newspapers, magazines and other media to the Internet, this will continue to the development trend of the media, the Internet will constantly affect and change the way people live, Network marketing mode also with people's way of life change. Therefore, more effective statistical analysis of network consumers, can help enterprises to save the part of the cost of marketing costs, improve the ROI of enterprise Marketing (ROI).

In addition, the use of more mature network advertising effectiveness evaluation mechanism, is also an important trend of network marketing. At present, for Internet advertising, column sponsorship or content cooperation and other forms of network marketing, some large websites, such as NetEase, will use the comprehensive evaluation method of network advertising effectiveness to assess the reference rate and goodwill and other key indicators to prove the actual effect of network advertising. But at present the domestic network marketing industry still lacks the system, the unified appraisal mechanism, needs the related organization the promotion and the consummation.

Looking to the future of the Internet, there are many things to look forward to. NetEase is willing to work with the Chinese advertising industry colleagues, and continuously realize the new breakthrough Network Marketing.

NetEase continuously realizes new breakthrough

2005 NetEase's network advertising revenue to achieve a breakthrough, growth rate of 41%, higher than other portal sites, brand customers have maintained a considerable growth. The majority of customers and agents of netease recognition and support, is to achieve these success cornerstone.

In addition to advertising revenue, NetEase in the customer's industry distribution and quality, but also has a breakthrough promotion. In the original it, the Network service industry NetEase continue to maintain customer advantage, in FMCG, automotive and other industries, have made great strides in development.

Taking FMCG as an example, food and beverage customers such as Pepsi-Cola, Unification, Master Kang, McDonald's, KFC and so on, cosmetics customers such as Nivea, Dior, DHC, Homoserine, Chanel, Vichy, Lan, Lange, etc., are regarded as an indispensable brand to inform the platform.

Auto customers such as BMW, Toyota, Guangzhou Honda, Passat collar, Dongfeng Honda, Dongfeng Citroen, Saab, Double Dragon, etc., are selected in NetEase advertising.

2005 NetEase continued to make breakthroughs in the field of rich media advertising. NetEase continues to strengthen with the interaction (icast), Eyeblaster, United virtualities and other well-known rich media advertising technology providers of cooperation, and in the domestic portal site, become the first to provide all content Channel page Rich media advertising services site. The competitive mobile phone market, Samsung, Sony Ericsson, MOTO, Nokia and other brands launched new mobile phones are mostly using NetEase's rich media advertising to promote.

Very emphasis on the effectiveness of network advertising customers, such as ebay ebay, Korea Community web site race My network, Alibaba's Alipay and other key cooperation with NetEase, these customers brand image in the rapid upgrade, but also brought a huge increase in the target user base.