Chapter 756 Unexpected Advertising Revenue

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Phoenix Technology's growth rate this year has also exceeded Ye Shu's expectations. He thought that a 30% growth rate would be considered good.

After all, the results of the previous year were very impressive, and it was only under special circumstances that we were able to obtain nearly 4 trillion yuan in revenue. Last year should have entered a relatively stable period.

As a result, the answers they handed in far exceeded his expectations, and they became a company second only to Taiji Group in terms of profitability. It can be seen that Phoenix Technology has not been immersed in its existing glory, but is actively forging ahead and achieving even more outstanding results.

Last year, their most profitable company must be Phoenix Software, whose revenue more than doubled to 2.3 trillion yuan from the previous year.

Thanks to the rapid development of the information age, the computer has become an essential tool for almost everyone. Whether it is work or entertainment, personal computers are inseparable.

Smartphones did not come out, and tablet computers also had a large market. Coupled with the need for more portable office work, tablet computers also played an important role in work.

With the increase in sales of these electronic devices, the sales of their operating systems and office software products have also increased, bringing them a total of 800 billion yuan in revenue.

In these two fields, Phoenix Software has become the absolute hegemony. No matter the operating system that used to be charged or free, it has disappeared.

The gap in operating system technology is too large, and the ecology of the Phoenix operating system is the most abundant, so many people would rather spend money to buy it than use a free open source operating system.

In the field of database, last year also achieved impressive results, and it can even be said that it has gradually controlled the entire database market. The database companies that used to be all-powerful are basically all lonely.

In addition to sticking to some special fields, Phoenix Software's database cannot set foot in it. In the civilian field, their database is basically the world without any competitors.

Moreover, the database product launched by Phoenix Technology is not one, but the entire product series, which can meet all database needs of users.

Coupled with the use of intelligent technology, the gap in database technology is even greater than the gap in operating system technology, and it is normal to have no competitors.

So last year their database business brought them 400 billion yuan in revenue. Although their databases are relatively expensive, there are reasons why they are expensive, and some companies are still willing to pay.

Last year, the fastest growing area was the security field. With its world-leading security technology, it has almost achieved a monopoly in the field of network security and data security.

Although the great development of this business was caused by the attack on Phoenix Software, everyone paid more attention to network security.

But what really promoted the development of Phoenix Software's security business was the frequent security incidents that occurred last year, which made both large and small enterprises and individuals attach great importance to it.

The hackers who attacked Phoenix Software last year were almost wiped out. Many hackers were unwilling to be humiliated and began to attack wantonly on the network, causing many serious network and data security incidents.

However, enterprises that use Phoenix Software's security suite can stand firm in various security storms, and only then can they truly establish their leadership in the security field.

In terms of the proportion of this business revenue, the revenue generated by the PC security business is not bad at all. A total of 800 million PCs worldwide have used their security services, almost reaching 100%.

What's interesting is that there are as many as 500 million members who have purchased members, and all of them choose relatively expensive members, which cost 50 US dollars per year.

The reason is simple, that is, the smart security service provided by the $50 membership is what these consumers value, and the setting that can cultivate growth makes these consumers want to stop.

The rest are basically free users, because members of other gears are not very attractive, either they have no money to buy members, or they will buy members of the highest gear, and very few choose middle gears.

These free users have also brought them a lot of advertising revenue. Since the smart security software has built-in user behavior analysis, it can better understand the needs of users.

Therefore, the advertisements they place are highly targeted, resulting in very high revenue from the advertisements they place. In addition, the advertisements are also very well done, and users are not particularly disgusted.

Therefore, their average single advertising cost has reached 0.5 yuan, and each free user has the opportunity to place 6 advertisements per day on average, which means that each free user can bring them an income of 3 yuan per day.

In fact, member users also have advertisements, but only lock screen advertisements are placed by default. If member users do not want to see them, they can manually close them, but free users cannot close them.

And the vast majority of member users are not disgusted with the lock screen advertisements, and basically do not close them manually, so each member user can bring an additional 2 yuan in advertising revenue every day.

In this way, last year, the membership fee income was more than 200 billion yuan, and the advertising revenue was even higher, as high as more than 690 billion yuan. Together, they realized a revenue of 900 billion yuan.

This shows that directly collecting membership fees from users is not the most profitable. On the contrary, advertising fees have brought them huge income, which is more profitable than the so-called search engines.

On the contrary, the income of the enterprise network security business is not that high. Last year, it only received a total of 200 billion yuan in income. This proportion of income is a bit beyond Ye Zishu's expectations.

Originally, he thought that most of the income should come from corporate customers, but he didn't expect individual users to contribute the most. The difference between the two is so great.

This means that the security business alone has brought them 1.1 trillion yuan in revenue, making it the most profitable business under Phoenix Software, which is a bit dramatic.

It was not very optimistic before, and even a marginalized business had such a strong development potential. Everyone in Phoenix Software Company probably did not expect such a scene.

And according to their data, the price of advertising is still rising, the reason is very simple, that is, the efficiency of advertising is too high.

The overall conversion rate is as high as 10%, which is unique among many advertising platforms. Don’t think it’s rare. This is not the click conversion rate, but the purchase conversion rate.

Different from other advertising platforms, their advertising platform has the most comprehensive and accurate analysis of user behavior, and the advertisement recommendations are all what users need.

Therefore, the advertisements placed here are basically product sales advertisements. For product sales, it is a very remarkable thing to have such a high conversion rate.

This means that it is possible to sell a product by spending 5 yuan to promote it. If the value of the product is relatively high, this cost can be fully afforded.

And last year, the largest user of this platform was the E-commerce company. With such a good resource, of course, it was my brother who was able to seize the opportunity the most and made their online sales platform achieve great development.

The high price of a single advertisement on their advertising platform is also due to the promotion of the e-commerce company. Compared with other advertising platforms, their advertising display space is very limited.

So many merchants want to compete for resources here, which naturally leads to a skyrocketing price increase. The price of a single launch in the early stage was only 0.1 yuan, and now it has risen to 1 yuan, and there is still a tendency to rise.

Under such fierce competition, low-margin products may be gradually eliminated, leaving only high-margin products, which are also big brand products.

In addition, they have gradually begun to be picky about the advertisers who place them. This is done to improve the quality of advertisements and prevent consumers from bearing too much loss.

In comparison, my brother's shopping website is more trustworthy, especially the self-operated business. The items in it have been carefully selected, and the quality is absolutely no problem.

For other third-party merchants, the quality of big brands is relatively more guaranteed, and the introduction of big brands can also protect their own interests, which can be said to be a win-win situation.

Behind such a dazzling advertising revenue, Ye Zishu saw something different, which at least explained two problems:

The first is that the market competition is more intense. Only in order to compete for a limited market, merchants are willing to spend more money to compete for high-quality advertising resources.

The second is that Internet advertisements have begun to be favored by advertisers. Compared with TV media advertisements, Internet advertisements have too many advantages. Only Internet advertisements are most suitable for scenarios like this that directly guide users to consume.

He owns many high-quality Internet advertising platforms, occupying the territory in advance, and pocketing most of the Internet advertising revenue.

It is right for Phoenix Software to gradually turn this advertising platform to the high-end field, because unlike other advertising platforms, with limited resources, if you want to increase income, you can only develop in the high-end field.

Only in this way can the single delivery revenue be increased, and at the same time, the user experience can be improved, so that users will not be disgusted with the advertisements placed, which is even more important.

In contrast, the growth of the development tools and software functional component business is not particularly obvious. Last year, it only brought them a total of 1.5 billion yuan in revenue, which is completely negligible when put together.

As for the game revenue, Phoenix Software Company no longer held it in its hands, and directly handed it over to Sea-Gull Interactive Entertainment. Anyway, most of the income in this field still came from Sea-Gull Interactive Entertainment.

In fact, it doesn't make much sense to switch from left to right, and in comparison, this business is not so important now, so let's just hand it over.

If there is no new business, it is impossible for Phoenix Software to have such a high growth rate this year. The rapid development of the security business this year is completely unexpected.

However, smart phones will be launched this year. Although the operating system charges for smart phones are not so high, the number is still considerable, which will have a good positive effect on the overall business.

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