Traditional outdoor advertising will die, Internet of Things advertising has come

As the year is approaching, Ni Shu has already set foot on the way home. When passing through Changsha, he has had a meeting with Mr. Ouyang Yu, CEO of Guangwang. He talked about the trend judgment of the advertising industry. There are so many dry goods, and here is the insight. Referred to everyone:

Traditional outdoor advertising will die, Internet of Things advertising has come

Last year, Google began testing fully automated outdoor advertising on the streets of London, England. At the main intersection, the original outdoor advertising big name was contracted by Google and turned into a huge "mobile phone screen". These "giant mobile phone screens" With its own camera, you can post friendly reminders about whether the traffic is ahead, and you can instantly combine Google’s big data to release the new sports events that the British are most concerned about. Even a bakery on the street corner is about to be baked. Promotional information on the freshest doughnuts in the oven.

Rather than saying that Google is a high-tech company, Google is an advertising company because, regardless of how many subsidiaries Google has, advertising revenue is still the main source of support for its operations.

In the four quarters before December 2015, advertising brought a total of $64.462 billion, which is close to 90% of total revenue. Therefore, it is not surprising that Google pays so much attention to new advertising technologies and finds new channels for advertising.

Traditional outdoor advertising will die, Internet of Things advertising has come

Why did Google choose to test these new technologies in the UK? Not in the US base camp? This has Google's hard work:

In the United States, outdoor advertising resources are highly concentrated in the hands of listed companies such as Clear Channel, Lamar and other giants. They have been cautious about giving resources to Google, and they are actively developing the latest. Networking technology (see: Interface News for the latest technology of Clear Channel in the US "Outdoor billboards can now not only know where you have been here but also track where you are going next").

Unlike the UK, the UK’s outdoor advertising maturity, interconnection and openness are higher and more inclusive than in the United States. There is an outdoor advertising industry association (Outsmart) in the UK, which classifies the country’s outdoor media resources and gives More than 500,000 outdoor billboards provide a unique 10-digit code. With this code, all the data of this billboard can be found directly on the Association's APP software space, such as which precise latitude and longitude the card is located on. The basic LBS data is public, and after Google gets the data, when the Google user walks on the billboard, even if the user does not open the small mobile phone in the bag or in the hand, Google can also instantly deliver any ad to any user through the networked "outdoor giant mobile phone screen" of members of the British Outdoor Advertising Association.

Traditional outdoor advertising will die, Internet of Things advertising has come

As mentioned earlier, last year, advertising brought a total of $64.462 billion in revenue to Google, and as Internet users managed to eliminate the interference caused by advertising, Adblock Plus and other ad blocking software companies have become Chrome and Firefox browsers in recent years. The most popular free software.

Eyeo, a German company that developed ad blocking software, said that the company's software has been downloaded more than 300 million times worldwide and has 50 million monthly active users.

According to media reports, these ad blocking software is developing rapidly. Recently, Google, Amazon, Microsoft and Taboola have to quietly pay the German companies behind the world’s hottest online ad blocking software. In exchange for the money, the latter no longer screen ads on their websites.

As can be seen from the above, Google has to surrender to the ad blocking software for its own survival, in case its advertising revenue is affected and affects future development.

Mobile Internet allows consumers to get any information anytime, anywhere, and the cost of obtaining information is zero, but for brand communication advertising, choosing too much online is a huge dilemma. Today's TV has hundreds of channels, and online video has more choices. On the mobile Internet, there is more information flooding. People are overwhelmed by information and flooded with various advertisements. Instead, they create the value of outdoor advertising today.

Companies such as Google have taken a fancy to this: the outdoor advertising offline traffic can form a mandatory high-frequency arrival in the living space that the mainstream population of the mainstream city must pass. The resulting brand detonation capability is the most needed by advertisers. The core competitiveness of outdoor advertising is still: no choice is the best choice.

However, the efficiency and precision of outdoor advertising must be linked with various "objects". If the outdoor advertising on the streets of London is not connected to the data of Google users' mobile phones or PCs, it is just a large outdoor advertising screen.

Outdoor advertising is no longer just "outdoor", but is connected with various "indoor" and "indoor" data and "objects". It has become a mutual integration. Therefore, it is no longer possible to use "outdoor advertising". To call this industry, the industry boundary of outdoor advertising will become more and more vague and even dying. However, after combining with big data, outdoor advertising will be upgraded and upgraded to “Internet of Things advertising”, which will generate great vitality and get teraflops. The market ("Internet of Things Advertising" noun was first proposed by Ouyang Yu, CEO of Guangwang.com, at the China Outdoor Media Leaders Summit on January 12, 2016).

Traditional outdoor advertising will die, Internet of Things advertising has come

Throughout the world, Google is undoubtedly the most forward-looking enterprise. In addition to incorporating the "object" of outdoor billboards into the "net", Google has also begun to include "television" in the "net". The Verge reports that Google has launched a TV advertising service based on its fiber access project Google Fiber.

With Google Fiber's set-top box, Google is able to let advertisers know exactly how many people are watching an ad, and Google charges advertisers by how many people watch it, such as when you like to watch sports, you turn from football to In the basketball game, you may play Red Bull's advertisement for you, and when you turn to the news program, you will play the insurance or financial company's advertisement for you. Google will also combine your viewing big data to analyze who is watching this. TV, how come you have this family structure, what are the main hobbies, such as you and the next door Lao Wang at the same time watching the same TV series in their own home, but the advertisements seen may be different.

At present, Google's service has been launched in Kansas City, and it can be pushed to other cities with Google Fiber in the future. Google Fiber has now entered three cities and regions in the United States, and several cities are being laid or planned to be laid.

In the words of Zhu Xudong, the author of PingWes: On a larger level, Google is no longer just searching for user data. The giant that started this search is stepping into all aspects of our lives, including Virtual world and real world. Don't forget that Google and Nest, what we did on the Internet in the future, what we did at home, maybe Google is more clear than ourselves.

Then, we can think about future advertisements. If the company needs to deliver insurance advertisements, through the Google AdWords advertisement delivery system, a white-collar user can be given a work health insurance advertisement on the office computer; when driving off the road, you can go outdoors. The advertisement is put on his accidental advertisement for commuting to work; when he returns home, he can turn on the TV or ipad, and he can immediately give him a wealthy universal insurance; even, because of the existence of Google Nest, you can decide whether to put a happy marriage or a health insurance He, because Nest is more likely than the male owner to know if there is a neighbor in the house.

Therefore, the future outdoor advertising will definitely be "Internet of Things advertising."

Traditional outdoor advertising will die, Internet of Things advertising has come

In China's outdoor advertising industry, Focus Media is undoubtedly the best company to do "networking". Jiang Nanchun has connected China's elevators into a network, so he has obtained higher profits.

According to its public revenue data, Focus Media's current market value is 120 billion yuan, and its net income in 2015 was 3.39 billion yuan. Among its main business income, elevator advertising revenue accounted for more than 80%, and it is close to monopoly. Jiang Nanchun is also working hard to incorporate “cinema” into his “net” and become another “profit bull”, so the fastest growing segment of the media business is the cinema pre-screen advertising.

In the field of media advertising business, Jiang Nanchun's ideal income structure is 35% of building TV, 35% of framed advertising, and 30% of cinema advertising (according to Jiang Nanchun's interview with Li Li, reporter of China Business News in April 2016).

However, Focus Media, whether it is a building TV or a "network" of frames or cinema advertisements, can only be regarded as a "networking" that relies entirely on human manual operation. Because the frame advertisements of Focus Media are almost all paper, they must be replaced manually. Elevator TV and cinema advertising are also relying on SD plug-in cards to replace stand-alone content, in a semi-artificial stage, not a complete "smart Internet of Things", and can not be completely intelligent and instantly replace any ads like Google, in addition, Google has been able to buy and sell all of its outdoor advertising screens in seconds or even milliseconds, while Focus Media’s ads can only be bought, sold, and replaced in accordance with Week/Week.

Traditional outdoor advertising will die, Internet of Things advertising has come

Of course, Focus Media's products are traded on a weekly basis. It is already a leader in the outdoor advertising industry. In addition to a small number of digital media, China's other tens of thousands of small and medium-sized outdoor advertising companies have only cost reasons. It can be bought and sold in months, quarters and even years.

The difference between human manual and digital intelligence is not only the “measurement unit” of the buyable product, but also the “choosy” of the customer. Through the Google AdWords advertising system, small companies such as the doughnut bakery on the corner can also It is impossible to deliver its own advertisements to customers in an accurate and low-cost manner, but it is impossible to distribute them to customers through outdoor advertising companies such as Focus Media. Because Focus Media has more than 20,000 employees, half of them are advertising development and installation staff, and half are sales staff. Nearly 10,000 sales people are located in major first- and second-tier cities across the country. The high performance pressure determines that they can only serve large listed companies such as BAT Jingdong, Xiaomi, 58 Jixing and Soufang, or are hungry, melon seeds used cars, In addition to these companies, nearly 10,000 sales people in addition to these companies, such as cars, life, food and beverage, communications, finance and other traditional large-scale companies, such as Tuba rabbits and Didi drops, which are hundreds of millions of dollars or billions of dollars. The company, therefore, Focus Media is unable to serve small companies like street corner bakeries.

Since it is a manual work, the work mode determines whether the manual work is either a very low-priced hard work, or a very high-end customized service. For example, the tailor is also designing clothes, and the corners can only make up the clothes for the common people. As a general clothing, the clothing designer in the office building, because of better education, knowledge of the trend and high-end contacts, can design a set of personalized clothing for high value-added people, so in China, the bakery, Small shops such as gyms can only find customers and open up the market by finding manual advertisements such as temporary workers' leaflets, and BAT/Jingdong Taobao and Mercedes-Benz can only afford the hand-customized practitioners who have mastered resources and technology.

It is not that large outdoor advertising companies such as Focus Media are not willing to pick up the advertising business of small startups. Instead, apart from the fact that the advertising resources have not fully covered most of China's corners, the labor costs also determine that their services are small. There is no difference between the cost of the company and the cost of servicing a large company. Therefore, for Focus Media, only large-volume customers will be selected as much as possible. However, if these large customers are served well, the income will continue to increase.

E-Tianbao once put 1 million advertisements in Focus. After the E-Tibet accident, the Focus-related sales staff accepted Tencent Finance’s interview and said: The price of the “framework” poster advertisement of Focus in Beijing and other first-tier cities is about 500 yuan / block / week (frame poster) and 300 yuan / block / week (building TV), E rental treasure only invested 1 million, the price is far from the "framework" minimum of 2.5 million yuan advertising package price. This news also revealed that within the Focus Media, the amount of package price can be enjoyed at 2.5 million, which means that customers below 2.5 million are small and medium-sized customers who cannot enjoy the package price.

Traditional outdoor advertising will die, Internet of Things advertising has come

Focusing as the best outdoor advertising listed company in China, its leader, Mr. Jiang Nanchun, has made great progress in relying on the Internet to earn the first barrel of gold. The company's Internet and intelligence are undoubtedly the highest, but also temporarily Can't be as intelligent as Google AdWords, and serve all big and small companies equally.

Focus Media has already done this. Other domestic outdoor advertising companies such as Yashiwei, Baima, and Degao China are mainly serving large customers, and listed in the current economic downturn. The company's business may be able to do a good job. After all, there are big customers there, but hundreds of thousands of other outdoor advertising companies in China are not doing well. According to the author's investigation, the operation of small and medium-sized outdoor advertising companies and Focus Media Like the model, it relies on manual installation and manual sales. Since the products and sales models are similar, the listed companies such as Focus can quickly recruit more sales personnel to serve more customers, but small and medium-sized outdoor advertising companies are trapped in labor. The increase in costs, as well as the reduction of customers (encroached by listed companies in the industry), did not have the opportunity to reach new customers such as Didi, Tuba, etc. Therefore, the performance of small and medium-sized outdoor advertising companies generally declined by more than 30% in 2015.

Companies such as Google are limited by the Chinese government policy, and it is impossible to enter China in a short period of time. Although Baidu launched the big data product of Baidu Sinan for outdoor advertising, the product is good, but the price is high, just a billboard. The surrounding data will be sold for tens of thousands or even hundreds of thousands. Small and medium-sized enterprises can't afford it, and Baidu Sinan can only solve the big data problems surrounding outdoor advertising. It can't solve the outdoor advertising program like Google AdWords. The problem of chemical, automated trading, so that small and medium-sized start-ups can afford to afford.

Traditional outdoor advertising will die, Internet of Things advertising has come

The outbreak of VR/AR in China and around the world, due to Facebook's acquisition of the virtual reality device Oculus Rift for $2 billion in 2014, caused public opinion and concern.

In the future, the outbreak of Internet of Things advertising may be the same as the new actions of large companies such as Google and Facebook. However, there are also many people of insight in China who have seen the future development of outdoor advertising and started to lay out in advance. For example, Ms. Huang Xiaonan, the largest DSP advertising platform in China: Pinyou Interactive, announced on December 3, 2015 that the VIE structure will be demolished and returned to the domestic capital market and 500 million huge financing will be completed. At the same time, it is announced that it will speed up the terminals in mobile, TV and outdoor. Programmatic strategic layout.

Note that the outdoor is placed on her third layout point, and according to the author's observation, Huang Xiaonan's current energy is mainly on the mobile terminal, the TV is starting to layout, and the outdoor layout still has a long way to go.

Traditional outdoor advertising will die, Internet of Things advertising has come

In addition, the outdoor layout is not what you want to do, it also involves the resources that the company has to do this, whether the company's natural DNA can do this.

Domestic listed companies such as Dahe Media have undoubtedly had the resources to do this, and have tried it. They hope to connect China's outdoor advertising into a network, but halfway through it; US stock listed company China Information Technology Co., Ltd. (stock code: CNIT) After the concept of outdoor advertising intelligent networking was put forward last year, Ms. Yang Yanyan, the CFO of CFO, announced that she would serve the main force of China's outdoor advertising market: small and medium-sized enterprises, CNIT relied on this concept to increase the number of financing, and successfully obtained nearly 100 million yuan from the US stock market. Renminbi, and launched an outdoor advertising online trading platform: "Amoy Screen", high-paying from 4A, good yeah and other famous companies dug up talents responsible for operations, but the project is subject to the long process of convergence of various resources, reporting, company pairs The change in priority strategies for other better new projects has led to slow progress. According to the author's observation, the Taoping network has not been updated for five consecutive months.

In addition, the domestic eagle net, advertising trading network, and 渤si information have also been tried recently. The first media of outdoor advertising: Mr. Huang Tao, president of Asia Outdoor magazine, also announced that it will launch an outdoor advertising program. The platform “Guangzhou.com” has received huge investment from the Shanghai Municipal Government and a large capital in Shanghai.

Traditional outdoor advertising will die, Internet of Things advertising has come

The process of outdoor advertising evolving into Internet of Things advertising is undoubtedly the process of melting blue ice in this industry. Who will successfully lay out and make a hot career in this cold zone?

Mr. Jiang Nanchun of Focus Media mentioned in the internal meeting several times that the division has only been extinct for only 8 years. Among them, he highlighted the subversion of the taxi industry by Didi taxi. Undoubtedly, he is also a forward-looking person.

So, is Focus Media still catching the trillion market of Internet of Things advertising? This may depend on who can serve the small and medium-sized enterprises, because all enterprises are big and small, and they have seized the small and medium-sized enterprises, and in fact they have seized the big enterprises in the future.

In the future, we will wait and see.

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