Why does Renren have to bet on games instead of advertising?

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Advertising has always been an important part of the development of the Internet industry, but the mobile internet that has sprung up this year still needs to be running-in. Earlier, in the face of this immature mobile internet, mobile advertising experienced data fraud, low conversion rate of doubt, and the Golden Hill mobile phone security guards shielding the function of the app ads is almost the embryonic state of the mobile advertising industry completely destroyed ...

But mobile internet vitality is very tenacious, it is the mainstream of the future development by the public, then will not be so easy to be eliminated by difficulties. After all these turmoil, mobile advertising business has slowly entered the profit model from the questionable model of burning money, according to Internet experts analysis, perhaps next year mobile internet advertising will tend to mature.

In the face of such a good environment, the social giant Renren, which sits on rich user resources, has failed to take pains in mobile internet advertising, as one would expect. What made the giant hesitate?

First of all, the advantages of Renren are lost, no longer a social tool.

With the period of "network Network" users have graduated, and the new students more use of instant messaging tools to contact, resulting in the vitality of Renren has been declining. Coupled with the popularity of micro-bo, micro-letter and other mobile social products stationed, so that renren in the social sphere of the impact of shrinking, things to now, Renren has not been as popular as the "network" so hot. For advertising, especially mobile advertising, such as immature areas, Renren does not dare to press this treasure.

Second, the economic reality in front of the game, so that everyone has a unique situation.

Whether in PC terminals or mobile terminals, the game is always one of the eternal themes. Therefore, Renren relies on the huge user resources, in recent years in the game income unceasingly is rising. Renren's third-quarter total net revenue was $50.4 million, an increase of 47.2% per cent, and a net loss of 15.4 million dollars, according to the quarterly results released by Renren. Online gaming, which accounts for nearly half the revenue, earned 24.2 million dollars, up 120.2% from a year earlier.

As a result, gaming revenue has been seen by Renren as a lifeline to help everyone out of their losses. In contrast to the less stable advertising business, the more popular and more revenue-generating game business should be the future of the development of Renren.

Renren's game strategy indicators do not cure, will eventually face failure.

In fact, in view of the current situation, Renren wants to get rid of the loss of the situation, the development focus on game products is feasible, but in my opinion is not long. The fundamental premise of social networking is to retain users, increase user activity, and then constantly usher in new users. This is a prerequisite for the existence and development of social networks, and the game alone cannot achieve this goal.

Games are very attractive to users of the big project, but it is all network practitioners can take to attract users of the big projects, but the game industry Renren and the advantages of competitors is not obvious. Instead, Renren should learn about Facebook's growing social-user experience, with social focus. Facebook's user-privacy album service, which has recently been popular with users, has made a big contribution to Facebook's increased user activity and the appeal of new users.

We know that social networks have a user to develop, have the ability to have the activity of the cost of profitability. If Renren, the Chinese social-networking giant, is no longer focused on building and upgrading social networks, the fruits of the remaining games will no longer be guaranteed.

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