Chapter 2586 Video advertising is unreliable

When it comes to the Internet advertising business, except for a few countries, the situation is similar all over the world.

Google first.

Facebook is second.

Yahoo is third.

Several core products of Ziweixing International are not on the list, mainly because the business is still in rapid development and advertising is restricted.

Tang Binchen said: "The scale of Internet advertising in France will reach 3 billion euros this year. It is growing rapidly and has become the best market for online advertising in Europe. This is related to the policy guidance of the French authorities and market selection. Paper media , TV and radio advertising are all moving strongly towards online media advertising.”

Zhou Buqi was surprised, "Is this weird?"

Tang Binchen said: "Of course it is strange. If this year's online advertising business is divided into a market, the high-growth areas are Asia and Latin America, the medium-growth areas are North America and the Middle East, and the low-growth areas are Northern Europe, Japan and South Korea. Europe The core area is the only area with negative growth.”

"ah?"

"Mainly due to political and economic instability, advertisers have tightened their budgets."

"Well, the Eurozone."

Zhou Buqi nodded.

Similar news is everywhere. The economic index for the first quarter of this year has been released. The economic growth of the Eurozone has been hindered. Since the outbreak of the subprime mortgage crisis in 2008, it has fallen into the longest economic recession in history.

Tang Binchen said: "Yes, the Eurozone is in a bit of trouble. Although many experts have analyzed that the economic situation will improve in the second half of the year, the market is still very worried. For now, the French market is the best, at least Internet advertising has continued It has maintained rapid growth for many years.”

Zhou Buqi said amusedly: "What are you doing? Are you excited by this?"

Tang Binchen asked in confusion: "Shouldn't it be?"

Zhou Buqi said: "The European economy will definitely recover. Haven't we already said that we should think in the opposite direction? The French Internet online advertising market is performing so well, so we should not enter the French market at this time. We should pay attention to those markets where online advertising is declining."

France is performing well. If you enter the market at this time, the price will be high.

Online advertising in other countries has fallen, and the market price will also be low. At this time, it is the best time to buy some related companies.

Tang Binchen explained: "The Internet foundation in Europe is really poor. There are really no good projects to invest in. We still have to do it ourselves. There is nothing to buy. There is some opportunity in France, and the operator Orange has extended an invitation."

Zhou Buqi said with a smile: "Orange wants to hug us."

Tang Binchen said: "There is a video website in France called Dailymotion. Its specific business is the same as YouTube. In France, the number of views and activity is higher than YouTube."

Zhou Buqi asked: "Is this video website owned by Orange?"

"Yes," Tang Binchen nodded, "They acquired it last year for approximately US$200 million. However, they are not satisfied with Dailymotion and want to find a Silicon Valley technology giant for strategic cooperation."

Zhou Buqi smiled and said: "She is quite self-aware. She knows that she can't do well and wants to find a big backer."

Tang Binchen said: "Yes, I was told on the phone that they can give up up to 60% of their shares. If they give up the position of the eldest brother, they are willing to be the younger brother. This is courageous enough."

Zhou Buqi said: "From mobile payment to mobile advertising, their thinking is quite clear. It's a bit like bloodletting therapy, bleeding to survive."

Give up most of your rights and interests, and then find Silicon Valley companies to cooperate.

At first glance, it seems that I am at a loss.

In fact, this is sacrificing interests for survival.

If Orange, a French operator, went it alone and held 100% of the shares... it would look great. The money they make would be theirs, but it would be a problem for them to survive.

Looking at it now, this video website called Dailymotion is number one in the French market. But in the long run, how can it compete with Google's YouTube?

That’s not all.

Facebook, Yahoo, including Helo’s Moments, etc., also have video services. To compete with so many world-class products from Silicon Valley, a French Internet company simply does not have the strength.

This is not the same as China, Japan and South Korea.

France is a completely open market, and there is not much cultural gap. There is no difference between American products and French products for users.

This makes it difficult to form local protection.

Tang Binchen said slowly: "They said they want to find a partner and expand Dailymotion's market in the United States."

Zhou Buqi was amused and asked, "Are you dreaming?"

Tang Binchen laughed and said, "Anyway, that's what they said. Maybe... maybe they couldn't bear to do the bloodletting treatment, so they found a decent reason."

Zhou Buqi said: "I don't think it's good! No chance!"

Tang Binchen asked tentatively: "Don't you want to try?"

Zhou Buqi said decisively: "Behind YouTube is Google, and it is bundled with Android. Who can beat them? No one is YouTube's rival for the same type of website. Google is busy laying out its social business recently. , and didn’t spare any time to fully promote YouTube. When Larry Page’s social dream failed, he turned back to promote YouTube... Hum, let alone a website in France, even if the nativism is scary, They can also conquer the hellishly difficult Korean and Japanese markets.”

Tang Binchen frowned slightly, "Just give up like that?"

Zhou Buqi asked strangely: "It's obviously a dead end, but you're just looking at it, and you still have to rush in?"

Tang Binchen said: "The share of video advertising in Internet advertising will become larger and larger. If we insist on not doing this business... I am worried that in the field of media advertising, Ziweixing International's entire strategic layout will have major deficiencies."

Zhou Buqi nodded and said, "Yes, that's right."

"Huh?" Tang Binchen was confused, "Are you not in a hurry?"

Zhou Buqi didn't take it seriously, "What's the rush? You watch YouTube, it's bundled with Android. Is there any activity on the mobile side? Can it compare to Helo?"

Tang Binchen smiled and said: "Not to mention compared with Helo, it is not even half of Ucgram's, and it is 100 million less than Snapchat's monthly activity."

Zhou Buqi said: "Yes, that's the truth. The mobile network infrastructure is still not very good, the 4G network is not fully rolled out, and the information fee is too expensive, which restricts users from watching videos on their mobile phones."

Tang Binchen understood what he meant, "You mean... the time hasn't come yet?"

Zhou Buqi said: "Ziweixing International's consumer business is mainly engaged in the mobile terminal. How about the video advertising market on the PC side, it will not affect Ziweixing International's strategic positioning. Yahoo's video business, including the game video website Twitch, They can all develop independently. This is not a strategy. From a strategic point of view, we still have to focus on the mobile business. We have to wait for 4G to spread more widely, the network speed will be faster, the information fee will be lower, and the trend of watching videos on mobile phones will Just get up."

Tang Binchen hesitated and said: "Then if we don't occupy the pit position in advance and charge when the opportunity comes later, will it be too late?"

"A pitfall?" Zhou Buqi was a little amused, "How can there be a pitfall? Does Dailymotion count as a pitfall? You haven't understood what's going on with YouTube. Even if we take over Dailymotion, we can't do YouTube. Still. The most important point is, how much does a video cost? Can that amount of advertising money really support a video website?"

The scale of video advertising is quite large.

However, the amount of money from video advertising cannot afford to support a serious video website platform. The cost of a 10-minute video may be only 10 cents per play, and the average advertising fee is 8 cents... That’s really a loss every time you play it.

Zhou Buqi said: "The cost of video is too high to solve this problem. Now it is impossible for video websites around the world to make money by relying on advertising to make a profit."

Tang Binchen asked: "What should we do?"

Zhou Buqi said: "Shorten the video!"

"shorten?"

"A 10-minute video costs 10 cents, and the advertising fee is 8 cents. That's a huge loss. If a video is only 10 or 15 seconds, the cost is reduced to 0.1 cents, and the advertising fee is still 8 cents... This is the business model of video products under the correct advertising system.”

"10 seconds of video?" Tang Binchen couldn't accept it. "What content can this have?"

Zhou Buqi smiled and said: "It will definitely not work in the PC Internet era. In the mobile Internet era... it will be different when you can actually watch videos on your mobile phone."