Precision Marketing - New Genes for Internet Advertising

Precision Marketing - New Genes for Internet Advertising The advertising industry has an old saying: You know that half of the advertising investment is wasted, but you do not know which half. But precision marketing practitioners in the Internet advertising industry seem to be solving this problem.

"This is the best time and the worst era." This phrase is used to describe the situation of advertisers in the Internet era is really accurate. The advent of the Internet era and the birth of new media have brought advertisers diversified choices. Advertisers no longer have to be subject to the layout and time slots of traditional media and a single marketing method.

Facebook's COO Cheryl Sandberg once said that the shape of the advertising industry is like a funnel, and the top end is very large. In order to attract more users' attention, the user who enters the bottom of the funnel has a small opening. It is the customer who eventually consumes. Of the $640 billion in annual global advertising market, 480 billion yuan is invested in ambiguous consumer demand. The success of the advertising company depends on the work in the lower part of the “funnel”, which is also the goal of “precision marketing”.

New Gene Pioneers Today, 4A's "Long Chair" in the advertising industry is not as comfortable as it used to be. It is undeniable that the Internet has injected new genes into the advertising industry. In the Internet era, anyone can be the ad's distributor or the ad's communicator. When Google occupied 70% of the U.S. search market and Facebook's global registered users exceeded 500 million, traditional advertising companies also had to move closer to these two Internet giants.

The overseas precision marketing market has matured and there are leading companies in various segments. However, the "champion" of these subdivisions has become a prey for companies such as Google, Microsoft and Yahoo. Take Google as an example. Nowadays, Google is not just a search engine. It is a key issue to realize large amounts of traffic through advertising. “In the overseas market, the Internet advertising industry has always had no shortage of people who have come from behind. But for now, the best thing to do is still Google,” said Qun Qun, the managing director of American Lightspeed Venture Capital. Biao Qun has always been optimistic about the prospects of the Internet advertising industry. After the Doubleclick (Double-click) technology of Lightspeed Venture Capital was acquired by Google for US$3.1 billion, it has strengthened its confidence in continuing to seek investment opportunities in this field.

In the process of establishing the "precision marketing" kingdom, Google has continuously acquired champion companies in the sub-sectors. In this respect, Google undoubtedly has many experiences to learn from. In its huge history of mergers and acquisitions, it may be possible to get a glimpse of the development path map of overseas precision marketing markets.

When Google entered the field of Internet advertising, it acquired the online advertising business company Applied Semantics and launched AdWords (also known as "Sponsored Link" and "Google Right Side Advertising"). Subsequently, Google acquired Sprinks. Sprinks is a subsidiary of Primia. Google acquired Adsense ads and became Google’s largest revenue generator.

Advertisers from all walks of life advertise through AdWords, and AdSense turns these ads into "Google-supplied ads." This approach is the basic advertising model for search engines. The development of precision marketing is then followed by the tracking and calculation of user data.

In 2007, Google acquired DoubleClick, the display giant, for US$3.1 billion to make up for Google’s shortcomings in display advertising. DoubleClick’s capabilities in data mining are amazing. In precision marketing, Google’s product system does not care what the user’s specific personal information is. It only tracks and records the user’s browsing data, and uses the calculated data to determine the user’s interest and consumption characteristics. Etc. This is the product model of precision marketing. The basis of the success of the precision marketing company is the accurate understanding of the user, through the accurate calculation of the user's behavior, to find a potential accurate audience for advertising.

However, not all companies are capable of building a full-media advertising realm like Google, but advertising companies in many subdivided areas also seek opportunities in their respective fields. In this regard, the earlier-developed US market has developed more maturely, and the advertising agency and precision marketing areas between advertisers and media have been sufficiently subdivided. In each vertical segment, you can see the advertising companies doing precision marketing. In the aspect of network user data, there are third-party data providers. These companies have gained a good reputation by finding their own advantages. market share.

The most significant phenomenon of the arrival of any industry boom in precision marketing in China is that investors’ hot money is surging in the industry, which is also true in China. In February 2011, Yoyi Interchange (Beijing) Advertising Co., Ltd. (hereinafter referred to as Yoyi Interoperability) completed the second round of financing; three months later, Jusheng Wanhe Advertising Co., Ltd. (hereinafter referred to as MediaV) was obtained from Soros. Quantum's $50 million round of financing, MediaV is the first single financing of Soros Quantum Fund in China.

"From 2008 onwards, the concept of precision marketing has been widely recognized by the industry. Many companies have been established one after another, and they will be able to acquire venture capital once they have been established for a year or two." IResearch analysts introduced Tianyu, "I think capital injection The role of the market has been fueled by, for example, most of the businesses such as Chuanxi, Yi Media, Yiyi, and Xpress Media have focused on precision marketing. Although they also have advertising agency business, they do not have much And the industry leader, Yeah Yeah, has a long business chain and more advertising agencies. The main purpose of these companies is to integrate resources and at the same time accurately target ads."

China's Internet advertising market scale reaches 32 billion yuan, of which search engine advertising has a scale of more than 10 billion yuan, and network display advertising has a scale of more than 20 billion yuan. The huge market scale affects entrepreneurs' nerves. China's precision marketing company's business is also involved in display advertising. However, China's more than a dozen active Internet advertising companies are far from reaching market saturation.

"In the past, Internet advertising was sold on a daily basis, which was no different from traditional advertising, wasting a lot of resources," said Yang Weiwei, CEO of MediaV. In the concept of precision marketing reached in China, some media began to accept the CPC, CPM payment model. CPC pays for CTR, but many CTRs still do not effectively become the final sales target. CPM is settled at a uniform price per thousand costs, which is currently the more common settlement method. Subsequently, the heat wave of e-commerce has spawned the CPS payment model in precision marketing. CPS is based on the sales effect. After the precision marketing company brings orders for advertisers through advertising and marketing methods, it is divided according to the amount of orders and advertisers. Accurate marketing companies that choose this approach are not common in the industry, but the needs of e-commerce have provided a good start for the CPS settlement model.

Although the industry has just started, there are already some problems. "According to the vertical and comprehensive aspects, most companies are still concentrated in comprehensive companies such as E-Media, YIYI, etc. And newly established companies are more focused on vertical areas, such as MediaV's focus on e-commerce. Sharing media focuses on the field of video advertising. Because at the beginning, the vertical market share was too small for the company to survive. But the future of the industry development or more will evolve to the vertical field." Analysis by Tianyu.

“This is a big technology industry, and the technology needs to be focused.” said Liu Yifeng, CEO of Yoyi Interoperability. The core competitiveness of precision marketing is embodied in technology, through the implementation of resources management and user data storage and calculation. “The companies in the industry are still at the stage of exploration and many companies are constantly adjusting their strategies.” Tianyu said, “Clear positioning is very important. For precision marketing companies, it is to do verticalization or to do comprehensive business. Investigating the need to consider the issue of clear-cut platform for advertising agency or advertising is a key issue for entrepreneurs.

Focusing on the vertical and accurate positioning of the winning industry is still in its infancy. For example, sharing media focuses on the field of video advertising. However, the division of divisions and the company's own situation need further development.

MediaV, which has just been established for two years, has become a typical representative of the industry's verticalization. At the same time, focusing on the positioning of e-commerce has also made MediaV an effective marketing spokesperson.

MediaV is an advertising technology and service organization specializing in precision marketing and digital marketing. MediaV purchases integrated online media resources, sets codes for the media pages, tracks behaviors and records of users appearing on the ad space, analyzes each user's preferences and needs, and selects the most suitable from the back-end advertisers. Ads are pushed to users in order to increase the effectiveness of advertising. Yang Weiwei took the idealistic creed of “creating value with products and technologies” and left Haoye to create MediaV.

Although MediaV is not the only company in the industry that has found a way to focus, its process of exploration and positioning is also an interpretation of precision marketing companies seeking to focus on positioning. At the beginning of the venture, Yang Xiaowei took MediaV to the traditional online advertising agency field with his ten years of experience in Haoya, and MediaV was initially very similar to Haoye: to provide all services related to Internet advertising to customers, including planning, creativity, Planning budget, departure period and so on. However, due to the poor performance of the initial advertising, MediaV was in a situation of being put down. Although this problem was solved with MediaV's accumulation of Internet users' data, Yang Xiaowei discovered the need of e-commerce for precision marketing. “In China, 40 of the top 50 e-commerce companies are our customers. Although 40 is not a big number, e-commerce itself is a platform that contains a lot of goods,” said Yang Xiaowei. Today, on MediaV's list of customers, there are Jingdong Electronics, No. 1 Store, Taobao Mall, Haolebu, and Masamaso.

Among current MediaV customers, 80% are e-commerce providers, and e-commerce companies mostly choose to use the pay-per-use model (CPS) for settlement.

Today, there are still few companies in the Chinese market that have e-commerce as the main customer and settlement in the CPS mode. Yang Xiaowei has used MediaV's decades of experience in the industry to find new ways. Billion yards and Langtaosha are also settled in CPS mode, but billion yards and wave Taojin are more similar to online alliances, focusing on small advertisers.

However, MediaV also encountered some problems when choosing CPS mode settlement. When MediaV obtained an order for an e-commerce vendor to place an advertisement, there was a problem with the return between some customers and the e-commerce that caused the order transaction to be unsuccessful. This inevitably caused losses to MediaV. MediaV adjusted the settlement terms of CPS and avoided Unnecessary loss. Yang Xiaowei believes that “in the process of cooperation with e-commerce, advertising itself is value.” The CPS price settled by MediaV and customers includes the price of each single package and also includes the price of brand advertising.

Lightspeed Ventures is MediaV's first investor, and in the next two rounds of financing, Lightspeed Ventures has followed suit. Zhai Qun said that MediaV is a very promising investment case in recent years. "MediaV's main customer is e-commerce, but in fact, MediaV's customers are not just e-commerce, because through e-commerce customers, MediaV optimizes the computing and storage capabilities of its products and increases advertisers' return on investment. But there is demand for them. Not only e-commerce customers, such as some car brands, also need to complete CPA settlement with the number of people who complete the test drive, and are also MediaV customers. Therefore, MediaV's potential customer base is very broad.” Sui Qun agreed with MediaV's positioning.

Now, after two years of development, MediaV's revenue climbed from zero to 250 million yuan in 2010. "The development of MediaV is very rapid and completely exceeds my expectations." This is the sentiment expressed by Yang Weiwei, and the group that travels with MediaV all the way also sighs.

Technology is another key factor in the development of the precision marketing industry. It is technology. At present, technology is not only productivity but also competitiveness for precision marketing. In many industry forums, various companies recognize the importance of technology. Followers of China's precision marketing have made great efforts to dig deeper in the field of technology research and development.

Chuan Yu Technology has launched a second-round financing of $20 million and launched a marketing platform that integrates user group analysis, media analysis, media planning, precision marketing, and monitoring. Media Matrix; Xpress Media and the world's largest Independent media agency service Aegis Media has jointly developed DigiEQ (Digital Equalizer) intelligent digital media investment management system. In the new product launch conference, Youyi Intercom officially launched the Audience Insight System, which also validated its efforts in the field of technology research and development.

In 2007, when the persistent entrepreneur Liu Yufeng encountered a technical genius Zhao Zheng, he started a business with a friendly connection. In four years, Liu Yufeng and his team created a three-step technology platform: search engine, cloud computing, and SVM technology. This is the result of Yoyi Interchange's insistence on "technology-driven."

Yoyi Interoperability collects Internet access records of users through technical means. As of June 2011, the number of valid samples exceeded 260 million. YoYi exchanges the web browsing records of each cookie in the UUID database through the technology platform, extracts the keywords in the text, finds the interests of the user, and performs subdivision management of user attributes.

Based on the SVM technology, advertisers only need to select user categories, and they can use behavioral targeting technology to push relevant advertisements to target users. This, for advertisers, achieves its goal of precision marketing. “The most powerful place in UOB is based on a database of 260 million user behaviors. It directs ads to the most appropriate audience in the audience network, allowing advertisers to obtain the most accurate communication results and maximize the value of advertising. “Cui Lin, Investment Director of Siwei Investment Consultant (hereinafter referred to as Siwei Investment) said.

In 2010, Siwei Investment invested in the first round of investment. In February this year, Siwei Investment continued to follow up on its second round of financing. The newly injected funds will be used more for YoYi's product technology development and customer service capabilities. UYI will be based on technology-driven technology and integrate multiple media combinations through behavior orientation, page orientation, and technology orientation. , Maximize the value of advertising for advertisers.

In May, YoYi's core technology, Audience Insight System, was fully open to the outside world and put forward the concept of technology foreground. "We now put all our technology on the front desk for customer experience," said Liu Yufeng. The introduction of this new approach has quickly gained the approval of advertisers. In mid-May, Youyi Intermediary and advertisers such as Southeast Automotive, Guangdong Telecom, Asiana Airlines, Haier Qige, and European-style Mengniu carried out audience insights and millions of free trials of advertising resources. After the launch of the trial, they received a very intuitive "audience insight report". Advertisers who conducted trial activities with Youyi expressed that they are willing to use the new integrated solution provided by Yoyi Interflow to launch.

The precise marketing of Google and Facebook to high precision is based on the accumulation of a large number of audience data. Google has traffic, Facebook has users. For followers of China's precision marketing, the road is long and long, and everything must be started from scratch.

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