Ziyujie CEO: Mobile internet advertising market a blue sea

Investment sector October 16 news, by the Qing Branch Group held the 107th issue of Z Mobile advertising "mobile advertising investment-small screen pry big market" Today two o'clock in the afternoon in Beijing Beta Coffee, the Alliance CEO Ziyujie attended this salon and delivered keynote speeches.

Photo of Ziyujie CEO

Ziyujie that the future development of mobile advertising platform and the core competitiveness of three: liquidity, technical capacity, sales capacity. The value of mobile advertising to advertisers is mainly embodied in four aspects: 1, the crowd coverage is wide, 2, the subdivision ability is strong 3, the display form is flexible, 4, cost-effective.

Advertising is the main business model of the Internet, Internet advertising has gone through three stages: the first stage is Yahoo representative of the portal stage, Yahoo 90% revenue is advertising. The second stage is based on Baidu and Google as the representative of the search phase, the two companies revenue income of more than 90% is also advertising. The third stage is the social platform stage, represented by Facebook, where more than 90% of the income is advertising.

Internet user base is very very big, many people do product competition with some low-cost strategy, even with free strategy to compete, you can get a large number of users, and then use advertising to cash out, this is the core of the Internet competition mode. The existence of this model has promoted the development of the Internet. Mobile Internet competition is more intense, the final form of competition is free service, but this model is not sustainable development, to sustainable development, advertising is a natural development model.

The following is a transcript of the speech:

Good afternoon, everybody! I am the Ziyujie of the AU, and thank Chingko for giving this opportunity to discuss the development of mobile internet advertising.

Before I start, I'm an Internet veteran, is almost 2000 joined Baidu, Baidu was still a start-up company, only more than 20 people, in Baidu for ten years, the first eight years is responsible for Baidu's user products, is Baidu home page in addition to web search outside the technical team I in the tube, such as the bar of the way , Baidu Space, MP3 pictures, videos and web search.

08 to 10 to Baidu's business search department, how to turn the flow of money into the department, responsible for the department's Research and development work. Mainly do is the Phoenix Nest and the Network Alliance, because the Phoenix nest corresponding to the job is the entire transformation of Baidu system. Phoenix Nest did a good job, January 09 on line, you see the trend of five years can be seen in 09, the stock price rose 10 billion U.S. dollars, the system impact is still relatively large. I was 10 from Baidu out, September 10 with two students in Central Europe to do a multi-League, the alliance is focused on smart mobile advertising this piece, two years has been in this area of exploration, today's exchange and everyone is in this piece.

I start from the Internet advertising, the internet to talk about advertising is the main business model of the Internet, the internet has gone through three stages, the first stage is a Yahoo representative of the portal stage, Yahoo 90% revenue is advertising. The second phase of the search for the representative of Baidu and Google, the two companies revenue income of more than 90% is also advertising. To the post-Facebook representative, more than 90% of the income is advertising. So advertising is the main business model of the Internet.

Simply put, why is advertising their main business model? This is related to the shape of the Internet itself, the user base of the internet is very very big, many people do product competition with some low-cost strategy, even with a free strategy to compete, you can get a large number of users, and then use advertising to cash out, but also the core of the Internet competition mode. It is also because of the existence of this model, thus promoting the development of the Internet. Companies like Baidu and Google, all of which are not making money until 04, are driven by this model to further promote the development of these companies, thus driving the entire company forward. Mobile Internet scale is large, more competitive, developed products others are also developing, the final form of competition is free service, this model is not sustainable development, to sustainable development, advertising is a natural development model.

In the case of Chinese smartphone users, the smartphone at the end of 11 mainly refers to the Android and iOS system in China, at the end of 11, China is the terminal of 60 million households, the end of this year is 240 million users, next year may be more than 500 million. The figures for the end of 11 are accurate, and our platform can now see these numbers, that is, how much each day will increase, how much each month will increase, basically now more than 190 million, each month will increase by 20 million. To 500 million of users in Congress nearly half the population. The second is the time, in the use of smartphones, the time is still very much, almost one hours spent 6.5 minutes, the average down there are many two hours a day, advertising itself is the eyeball, is the use of the above, advertising to find such people. Third, one is the future of the market potential is very large, the future advertising market is a big market, the use of smartphones spent a lot of time, and now the scale is very small, relatively speaking, the future is a 10-year high-speed development of the market, in fact, the Internet is the same, now in the Internet the entire advertising market is relatively large, is currently 50 billion of the scale of one year, one of the search engines to get half of it is about 25 billion, Baidu is 22 billion. Push forward, eight years ago, Baidu revenue less than a billion, eight-year growth of 220 times times, internet advertising can grow so fast, relatively speaking, only the choice of a market, the company can scale to develop, the user is also the same, the future of mobile Internet is also a high-speed development of the market, may be basically a decade of high-speed development.

Having just finished, I would also talk about some understanding of mobile advertising, mobile advertising and the internet has a similar place, there are many different, the difference is that the first mobile phone really small screen, the mobile phone advertising requirements of higher competitiveness, the mobile phone can not do too many ads, the first to meet the user's feelings, because on the internet to advertise, There are a lot of edges and corners in the mobile internet is definitely not suitable. The second to advertisers, relatively small requirements more accurate, to the media to be able to get money, is also a higher click rate, accurate advertising is the future of smart phones on a better breakthrough, can make the experience of these three can have a balance. In fact, compared to the Internet advertising in terms of higher precision requirements.

Second, the mobile Internet is actually able to meet the smartphone, because the smartphone relative to a user's information can still be reflected more, such as location, often use of the application or to say that the relevant information will be more, such as time information, this can also give the Internet more accurate, on the one hand, the other side has requirements, On the other hand, smartphones offer this possibility.

Just said is the Internet advertising, for mobile internet advertising, just talked about the proportion of smartphones accounted for a relatively high, development faster, on the smartphone 80% of the time is spent on applications, is the application of smartphones is very important. In the application of 90% of the application is free of application, in China, 88% Internet users installed the app, the application of which 90% of the application is free download, in China may be more than 95% not to spend. Smart phone time spent on applications, most of the application is free, what about the business model for developers to do? Advertising is a very important business model, in the application of advertising, 98% of developers chose the platform for Third-party advertising development, not their own written advertising development platform. What is the value of mobile advertising platform? To any company, must have its own company's value, or for the industry to have a certain role, the company can develop, and mobile advertising platform for the industry what value, or to help the industry, in fact, more in the early days of mobile internet development, most developers do not have much revenue, Then most of the money in the industry comes from investors, but the model is unsustainable and the real money-making model lasts. Before the user is so big, or the real business model has not been found before, in fact, money from the outside is also very important for an advertising platform, he can bring the money outside the industry to the industry, the equivalent of a circulatory system, can bring money to the industry to promote the development of mobile Internet. Second, there are some companies in advertising to make money, they can promote, these large companies through advertising money to transfer to the development platform, the mobile Internet in the early days of the development of a circulatory system, can turn up, which is to promote the development of the circulatory system.

To advertisers, why should advertisers choose mobile advertising platform? The first is that the crowd is covered more widely, China currently has 190 million of iOS and Android users, this crowd or relatively high-end crowd, with the PC is highly coincident, the current use of mobile phones these people and PC overlap is very high, are used in the same era, the first is the population coverage value is relatively wide. The second smartphone advertising platform information positioning ability is very strong, if the front whether the newspaper or TV, or the Internet, it is difficult to position ads to people, smartphones actually provide a possibility, because behind is a person, according to the system to divide, see operators to divide, Or Android 4.1, or according to the mobile phone price, 1000 yuan below the mobile phone, 1500-2500 yuan, more than 3000 yuan, such a pattern to cent, I am using WiFi users, or 3G users, or often in which region activities more, these can go to the crowd rendering out.

If for some applications to do some learning, although there are 10,000 of applications, you should probably find out 7, 800 of the most core applications, these applications better distinguish between men and women, age, use these applications can learn from people, with these features can be better subdivided. In short, smart-phone advertising provides a better possibility for segmentation.

And then the presentation style can be very flexible, there are cost-effective, you have to 1000 people in the television to see this information, it may take 3, 400 yuan, and in the outdoors may be more than 100 yuan, in the internet is also dozens of yuan, may be on the smartphone is dozens of yuan such a magnitude. On the one hand your crowd is still good, also relatively wide, the second group can also be subdivided, and in here the price is still very good, the price is relatively cheap, this is the mobile internet to advertisers can bring value. For the media, the value is to be able to bring good to the media, so much of China's development can really rely on selling the ads and users, or very few, in the Chinese market is more than 90% by advertising to gain some benefits, or the industry early through this model to enable developers to survive, to develop better procedures, This pattern can support the development behind the developer. We play very famous apps, the development team at the beginning is also relatively small, in the beginning also can not get too much money, such as Angry Birds, before the development of the other people do not necessarily know that he can develop, and Fruit Ninja, is a very small Australian development team, This kind of team developed the model is not easy to investors, as for the money mechanism, can more push small development team to move forward.

Advertising platform on the value of the media, the media themselves can do their own ads, must be a platform for advertising, mobile internet advertising on the precise requirements is very important, the so-called precision must have information to be able to achieve precision, your judgment on this information can be accurate. Plus a network platform, this network effect can understand the user to use more, equivalent to have a network effect, it can in the process of advertising to use more information than a single area, which is also the future development of advertising platform can go forward a very important reason.

The ad platform just mentioned advertising platform for the future development and core competitiveness, the first ability is its own ability to become, the same situation can let the media earn more money, this is a very important consideration, with the market size, if the market size is small, do not need to advertise the platform. Advertising a lot, the media is also a lot of circumstances, there is the need for advertising platform. The ultimate value of advertising platform is to put the right ads to the right media, in addition, the appropriate ads to the crowd, because different people are not the same, this is his own value, through this value-added part of the media is to return to the media, the first is the ability to add value.

Second, require technology to be high, if I have a lot of advertising, media also many, and many factors, there is the scale of the advantages, must be able to scale to the existence of the necessary, in the scale of the day to deal with the problem of tens of millions of traffic, perhaps the problem is not too big, you have to deal with billions of of traffic, your architecture becomes very important. This is a federation of ads, developers may be many, there are basically thousands of and tens of thousands of developers, including developers will cheat, as an advertising platform can not quickly find the cheater. You can not find out the money, you give developers less money, the other developers will go, can find how fast, how much you spend, this is also the technology of the future platform. Then there is still relatively scarce advertising in the Chinese market, there are ads according to CPS, there are ads according to the CPC, in such a set of ads on the system, you go to support how to allocate this flow of good and support, the requirements of this system is very high.

and sales ability, you have a few ads, your technical ability is no use. You do such things in the process, you groping the process, in fact, there is a very long period of study, Google's algorithm itself is not the most cattle, more important his algorithm to adapt to his advertising situation, this piece is basically difficult to skip the past, this is the advertising platform to do attention.

The threshold of an excellent advertising platform is relatively high, basically need four years of time to grind, I used to do Baidu advertising platform, but also the entire internet has a relatively good platform, to make a really good advertising platform is more difficult, the technical threshold is relatively high, the cost is relatively high. From the mobile Internet environment in the United States, the current row in front of the millennial media, the top six of the market is still relatively large, China's future smartphone market is relatively large, the future may have several such patterns, but not too big. Because of this scale advantage, including the difficulty of this technology, many aspects of the decision should not have a lot of home to produce.

Overall, the two-year advertising platform, the market is still a very small stage, also need a long time to cultivate and nurture, including advertising display style, there are many business models to explore and optimize the place, is still groping stage, the future of the road is still very long, I hope the industry to work together to standardize the market, in order to achieve a long-term , do not be tempted by short-term interests.

I briefly introduce the situation of the Union, established in September 10, positioning is also more clear, only to do the smart phone advertising market, first only to do the domestic, the second only to do the smart phone, currently only to do the application of advertising, basically is still relatively narrow, relatively speaking or more focused. Simply speaking of business model, in fact, the equivalent of so many developers to develop an application in the application of advertising platform in the SKP, there is advertising platform ads, and advertising platform is from the outside to take ads, to the developers to divide, currently 70% of the revenue to the developer, this model is a simple model, is similar to the Internet advertising model.

The alliance has had two rounds of financing, the first is a round of financing is millions of U.S. dollars, the company set up 9 months to take 10 million of the financing. At present we have more than 40,000 applications, the use of SPK, or our ads will appear in more than 40,000 applications, presumably these applications covered by the smartphone is 180 million, I do not know how big the total number of China at present, we estimate is about 85%, The number of smartphone terminals covered is more than 18 million a day, a user may have more than one terminal, the PV display of more than 300 million per day, daily user display time of not more than 1 minutes.

Let's talk about the phone screen is too small, how to show, I tell you a case, there are a few advertisers to cooperate with us, there is a mengniu advertising, in the application will appear a one-way advertising, this person will move, will play, you take smart phone dangling flash, the equivalent of clicks, followed by follow, Just out of the group race schedule, can also guess which group will appear, the final effect is very good. This example is mainly about smart phone ads can be done very gorgeous, but also cool, rather than a simple ad. There are also games, in different stages of the game, you can call different advertising display style, can show good results. KFC and we have five or six times this year cooperation, as well as car ads, car ads in the amount of smartphone launch is relatively large, such as to find a test drive, in the 4S shop there are many models to play.

My introduction is these, thank you!