Business owners are abandoning traditional Internet marketing.
Baidu, China’s largest search advertising company, has lost 90 billion yuan in market value in the past 100 days. Tencent, China’s largest social advertising platform, saw advertising revenue rise 73% in the first quarter from a year earlier; At the same time capital markets such as JPMORGAN Chase, Morgan Stanley also reiterated the maintenance of Tencent Holdings “overweight” rating.
The new generation of Internet marketing means should be more economic to advertisers, low threshold, more personalized to customers, high viscosity.
Today, massive user data is driving a new round of marketing industry chain, thanks to the application of Ai technology.
In the future, digital marketing will become the most powerful driving force for enterprises.
The State Administration for Industry and Commerce announced that the national advertising revenue reached 648.9 billion yuan in 2016, up 8.6% year-on-year and accounting for 0.87% of GDP. The scale of data marketing revenue reached 290.27 billion yuan, up 32.9% year-on-year.
BAT’s AD revenue totaled $176.7 billion, accounting for 61% of the online advertising market. By 2018, the scale of digital marketing is conservatively estimated at one trillion.
Baidu: out of the “search advertising”, looking at Ai data marketing
In 2016, Baidu’s search advertising business was affected by policies and its development stagnated.
In 2017, Lu qi led a new strategy to reform Baidu from top to bottom. Baidu’s goal is simple: get rid of the old and embrace the new.
However, on May 18, 2018, Baidu suddenly announced the departure of Qi Lu, who led baidu into the era of Ai strategy
Ten days later, baidu CEO Robin Li made his debut. This time, Li yan Hong is full of confidence, declared that the future of the new launch of the search engine will never put advertising.
Baidu recognizes that the era of search advertising marketing has passed:
The next era, belongs to Ai data marketing.
But what is digital marketing?
In the era of rapid development of mobile Internet, Internet enterprises led by BAT have accumulated massive user behavior data.
However, using these data maintenance and development to drive business development is a big challenge.
The concept of data-based marketing is a means of processing data and regenerating value through customer-centered, data-fueled ARTIFICIAL intelligence solutions, which can help advertisers directly discover operational rules from data, so as to fully penetrate multiple contacts in the consumer market.
Translating vast, fragmented data on user behavior into business revenue has always been a marketing challenge, but AI can easily solve this problem.
If it sounds complicated,
Here’s a classic little story about digital marketing:
Wal-mart, a chain, has discovered that baby nappies are often bought with beer in America.
Wal-mart has the largest data warehouse system in the world, which collects the detailed original transaction data of its stores. Market researchers can easily know what goods customers often buy together by analyzing the shopping behavior of their customers through the data.
This is the result of analyzing historical data with data mining technology. The data, analysed by wal-mart market analysts, found that young fathers in the US were buying diapers after work, while a large proportion were buying beer for themselves.
So, Wal-mart adjusted to this data analysis, put diapers and beer together, and even promoted them together. As a result, diaper and beer sales increased rapidly.
This is a classic case of data marketing, using big data to see through consumer behavior. With ai-enabled data marketing, business patterns can be found in larger data sets.
Digital drive and AI empowerment are the future marketing trends
Tencent uses its own artificial intelligence technology and data analysis capabilities to enhance the directional ability of wechat advertising platform, so as to increase the demand for advertising, wechat circle of friends and public accounts and mobile alliance advertising in the amount of advertising display has also increased. Tencent’s current pay-per-click advertising link for public accounts will link users to advertisers’ mini-programs.
Prior to this, the three major domestic operators to Tencent’s monopoly position in the OTT model. It can be said that the output space of wechat to users has completely overturned the downstream revenue of operators.
Tencent Huiying, launched by Tencent in Jiangxi province, provides intelligent one-stop full-chain marketing solutions for regional markets. It also relies on Tencent big data to provide small-budget delivery solutions through timed, targeted and visible advertising transactions.
Algorithms to monetize Facebook-style marketing:
The figures show Facebook’s annual and net revenues from 2007 to 2017. The world’s largest social software company’s revenues grew from 7.87 billion in 2013 to 40.7 billion in 2017.
Refactoring. Tech startups are moving into digital marketing
The servers that store the world’s vast amount of data about users’ personal behaviour are black boxes full of gold. Previously, only BAT companies were allowed to smelt gold in the black box. Now, the black box is being quietly broken down, and start-up teams can use the law of social resource redistribution, as well as good algorithms and technical means to enter the digital marketing industry and share in the pie.
The data black box is open, and startups can step in, too. With good data, tech companies have a lot to offer in marketing.
Eric (pseudonym), 45, is the boss of a start-up enterprise DMP platform company. Eric told Ai Ruijian that the company’s main product is called “advertising cloud”, through which advertisers can distribute links to specific websites through the system, and these distribution channels can be customized.
Each time a visitor clicks on an AD link, it is recorded and the advertiser will end up paying the amount deducted by the unit price multiplied by the number of clicks.
Their “AD cloud” has generated more than $5 million in transactions over the past few months. The AD recommendation algorithm that the Internet advertising company uses on the back end of the cloud is also an application of ARTIFICIAL intelligence.
Eric said that there are many advertising cloud products on the market at present. The difficulty of such products is upstream customer data and lower advertising channels.
Completely different from the existing large companies, he distributes the advertising traffic to various small websites. The publishing rights of these websites are controlled by another Internet company. Every month, Eric’s company needs to pay the rent for the publishing column of the website, which is far lower than the income on the advertising cloud in the two months of operation. This is also the question of what precision advertising high-profit area: accurate delivery, in fact, is the most cost-effective advertising advertisers.
“We always talk about algorithms, bayesian, but the practical application of intelligent technology in profit, you need to the upstream and downstream industry fuses in together, only to do distributors on each link may not make it a good product, also cannot very good solve the problem of enterprise, in other words, is can’t earn the same amount of profit and the technology itself value.”
Now we are talking about digital marketing, in fact, is data marketing. Without data as a driver, there is no marketing upgrade.
The future of digital marketing
In 2018, millennials are coming of age. They are more receptive to connected gadgets and online services, leaving behind a huge amount of behavioral data on social, shopping and entertainment platforms.
According to a Goldman Sachs research report, China’s post-80s and post-90s generation, which accounts for about 415 million people, or 31 percent of the population, will dominate consumption patterns over the next decade as their average annual income grows from $5,900 in 2014 to $13,000 in 2024.
From the perspective of corporate strategy, Accenture pointed out in the “five Design Principles of Digital Capital Market 2022” that in the direction of data-driven and customer insight: expand the scope of data collection and analysis, so as to analyze customer needs and customer behavior in real time, and guide customer service design.
Enterprises should continue to invest in marketing innovation in order to adapt to the fast rhythm of the future market and the rapid trend of change.
In any case, those who used to take “everything customer-centric” as the slogan of the enterprise, to the era of data marketing in order to timely and comprehensive understanding of customer needs and thoughts, gradually landed in the field of data marketing.
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