Why is private domain traffic being snapped up this year?

Quest Mobile data shows that the scale of monthly active mobile Internet users has reached 1.138 billion, and the growth has further slowed down. In the first quarter of 2019, the MAU growth was only 7.62 million, a decrease of more than 3 million compared with the same period last year. In March, the year-on-year growth rate fell below 4% for the first time.

On the other hand, Analysys data shows that from Q1 2014 to Q2 2017, the customer acquisition cost on Tmall platform increased by 62.5%; from Q1 2015 to Q2 2017, the customer acquisition cost on JD.com platform increased by 164%, and both exceeded the 250 yuan mark.

Tmall and JD.com ARUP values ​​from Q1 2014 to Q2 2017 (Image source: Analysys International)

It is not difficult to see from the above two sets of data: the overall traffic growth is weak and the cost of acquiring customers is getting higher and higher. This is also the reason why private domain traffic is being snapped up. Overnight, all companies have been eyeing private domain traffic like hungry wolves seeing meat. This article will talk to you about private domain traffic. You are welcome to leave a message to communicate.

1. Private Domain Traffic Vs Platform Traffic

Some articles define "private domain traffic" as follows: users in the private domain traffic pool are your own, can be used repeatedly, and can be reached for free.

In contrast, users on public traffic platforms such as Baidu, Taobao, and JD.com are just passing through, and they need to spend money to buy them, and the price is getting higher and higher. Generally speaking, private traffic pool platforms include official accounts, WeChat groups, personal accounts, Toutiao, Douyin, and Apps.

In fact, how to define whether it is private domain traffic is determined by who holds the ownership of the traffic. If it is in the hands of the platform, it is platform traffic, and if it is in the hands of an individual, it is private domain traffic.

According to this definition, private domain traffic has existed since we first came into contact with the Internet, such as: early BBS, personal websites, QQ, QQ groups, and then to Weibo, WeChat, WeChat groups, public accounts, media accounts, Douyin, Kuaishou, etc.

Products are tools that carry user traffic. Even if users are distributed on different platforms, as long as they are in the hands of individuals, they are private traffic. For example, the early big Vs on Weibo and the influencers on Douyin have accumulated a large number of users through the platform's traffic dividend period. Whoever gets the traffic wins the world, and only with traffic can the next step of conversion be carried out.

Public domain traffic (platform traffic), online traffic includes: website search platforms such as Baidu Search, Shenma Search, 360 Search; e-commerce platforms such as JD.com, Taobao, Pinduoduo; content aggregation platforms such as Toutiao, Tencent News, Qutoutiao; video content platforms such as Tencent Video, Youku, iQiyi, Douyin, Kuaishou, etc.

These traffics have significant centralized characteristics. The size of the traffic depends on the distribution supply of the platform. The right to distribute the traffic is in the hands of the platform, and the platform will introduce clear rules for obtaining traffic.

Whether this definition captures the essence of private domain traffic is not discussed for the moment, there are two points I can be sure of:

1. Private domain traffic is not a new product, but the current environment has pushed it into the spotlight. It is not a life-saving straw to solve the problem of expensive traffic, but it is a new opportunity.
2. Private domain traffic is not the same as WeChat traffic, Taobao traffic, and even less the same as micro-business. This understanding is narrow.

The biggest difference between public domain traffic and private domain traffic is who holds the user's ownership. Public domain traffic users belong to the platform, while private domain traffic users belong to individuals.

For example: public domain traffic is like fishing in the ocean. Although we have caught the fish, the fish still belong to the ocean. Private domain traffic is like the fish raised in your own pond. You can catch them anytime you want, and the fish in the pond can continue to reproduce. All the fish belong to the owner of the pond.

2. CRM for Private Domain Traffic

On May 29, WeChat issued new regulations, launching the largest-ever crackdown on illegal plug-in accounts. It is said that 30 million accounts were banned within half an hour. A number of accounts operating private domain traffic and micro-businesses were affected. Some group control service providers suspended their services, but they could not escape the fate of having a large number of accounts blocked.

On June 25, Tmall announced the "Flagship Store 2.0 Upgrade Plan", emphasizing that it will help merchants shift from operating "goods" to operating "people", and from a single-node model to multi-dimensional, multi-product operations. Alibaba's strategy of moving from people looking for goods to goods looking for people is also based on the models of WeChat business and Pinduoduo, with the intention of activating Tmall's 700 million yuan in traffic.

As mentioned before, people thought of generating private domain traffic because of the high cost of traffic. The bonus period for obtaining private domain traffic through WeChat was from 2015 to 2017. Players were “making a fortune in silence” and imported users to WeChat through e-commerce. The more common model was the micro-business model.

From 2017 to 2019, influenced by WeChat e-commerce platforms such as Youzan and Pinduoduo, Taobao stores also joined in. When buying things on Taobao, you will receive a small card with a QR code printed on it. After confirming receipt, the store will leave a message to the user. Adding WeChat or writing a good review can return a red envelope of X yuan; by the end of 2018,

Since 2019, the investment market has begun to follow up on tools for private domain traffic pools, and many tools for private domain traffic management have emerged. This type of tool is the CRM for private domain traffic.

WeChat private domain traffic management CRM, for example: Youhuzan, Juketong, Aochuang Linglinggou, Aike Micro Butler, Nanxun Duomou, etc.

Most of these platforms fall into two broad categories of functionality:

One part is the data management function, such as user portrait data and daily operation data, such as customer source, gender, region, whether to purchase products, purchase quantity; daily number of fans, session statistics, etc. Statistics on sales order data can be used to count financial transfer transactions on employees’ personal WeChat accounts.

The other part is the daily operation function, which includes aggregating chats with one person and multiple accounts, automatic replies, quick replies, group messaging, cleaning up zombie fans, etc. Through the CRM management background, companies can improve user portraits, conduct targeted marketing based on user classification and stratification, improve the efficiency and effectiveness of outreach, and save operating costs for companies.

Circle CRM. Private domain traffic monetization and management tools such as Knowledge Planet (formerly Xiaomiquan), Xiaodaka, Weimiquan, Xiaohongquan, etc. are also being planned. These products will break the platform to varying degrees in the early stages and have a certain degree of decentralization. At this stage, they are simply serving as a tool.

What these tools have in common are:

1. Each circle has an independent user system and customized functional modules. There are some commonly used operation tools to choose from, which is convenient for promoting the activation and conversion of private domain traffic.
2. It breaks the number and sharing restrictions of WeChat groups and QQ groups. The number of people in a circle is not limited to 500 people. A large circle can gather tens of thousands or even more users.
3. Content, social interaction, and paid transactions form a closed loop within the circle, which is like a platform within the circle's own ecosystem and can operate completely independently and circulate within the small ecosystem.

Other platform CRMs, such as Douyin, Kuaishou, Toutiao, Dayu, Jianshu, Weibo, etc., all have similar user CRM backends to manage user data for targeted marketing reach.

The CRM function of private domain traffic, in addition to using tools to understand users' basic data, behavioral data, and consumption data, should also provide users with innovative personalized services based on the different labels of private domain traffic users, attract new users, maintain old users, and convert old users into loyal repeat customers.

3. The next stop for private domain traffic

When everyone is talking about something, it means that you have missed the period of explosive growth and it has reached its limit point. The era of explosive growth in the private domain traffic dividend period has ended. Then, the next competition is the accumulation of own traffic and the integration of traffic resources. It is mainly reflected in the following two aspects:

1. Offline empowerment of online private domain

Why is it called offline empowering online?

When the cost of acquiring online traffic is higher than offline traffic, the offline natural traffic entrance can reversely empower the online traffic. Offline physical stores have a unique advantage in obtaining natural traffic, such as restaurants, offline tourist stores, supermarkets/convenience stores, etc.

For example: When upgrading your membership at FamilyMart convenience stores, you can accumulate points by reporting your mobile phone number before upgrading. However, this year, FamilyMart has upgraded its membership, and members need to download the APP and scan the QR code to accumulate points. During the transition period, both mobile phone numbers and APPs can be used, until finally only APP points can be used. FamilyMart has successfully transferred offline natural traffic users to online, making the traffic online and private.

The benefits of this are self-evident. In addition to more complete user data and the ability to proactively reach users, FamilyMart has an additional way to monetize online traffic in addition to the actual operation of offline stores.

Many times, companies and operators focus on online traffic and forget that there are many offline stores with natural traffic that can be utilized. Even if they don’t directly switch to the APP like FamilyMart, starting from personal WeChat accounts and opening up offline and online traffic channels is one way to integrate private domain traffic.

1. Private domain traffic alliance

With the development of private domain traffic, a traffic alliance may emerge in the future - a private domain traffic alliance. Similar to the early online alliances, in the future, owners of private traffic should look at issues from a more open perspective and perspective.

At this stage, you may be able to make a lot of money by having millions or tens of millions of traffic, but from a long-term perspective, the actual owners of private domain traffic are still the various platforms. Once the account is blocked, the traffic accumulated before will no longer exist.

Therefore, on the one hand, private traffic owners should consider how to integrate private traffic into their own platforms, and on the other hand, integrate traffic with other private traffic owners to increase the traffic base, increase traffic monetization channels, and find the second curve.

At this stage, MCN organizations should be similar to those that are doing private traffic alliances. They have integrated a large number of internet celebrity resources. Each internet celebrity has his or her own private traffic, and they distribute tasks based on advertiser needs, allowing the influencer's private traffic to be monetized.

However, the MCN alliance is only a small branch, and the later private domain traffic alliance will definitely be a huge organization that integrates resources. In addition, there are S2B2C e-commerce platforms that integrate micro-business traffic and cooperate with brands, following the model of "goods" finding "people", importing the original WeChat private domain traffic into its own platform, re-aggregating the private domain traffic, and then migrating to the private domain platform.

summary

At this stage, it is impossible to obtain a large amount of private domain traffic at zero cost, but it is still necessary for enterprises/individuals to consciously start migrating platform traffic and build a private domain traffic pool!

First, it saves its own customer acquisition costs by maintaining old users and accurately reaching out to them through marketing, thereby increasing LTV (life time value). Second, by reusing private domain traffic, in addition to its own use, it can also help cross-industry brand owners with similar users reduce their customer acquisition costs to one-tenth or less of the platform traffic, thereby achieving mutual success and a win-win situation.

Finally, don’t be obsessed with private domain traffic. One day in the future, private domain traffic will also turn into small platform traffic. It is just a matter of time and magnitude!

Related reading:

1. Product operation and promotion: How to compete for traffic?

2. Community Operation丨The essence and gameplay of "private domain traffic" in 2019!

3. Product operation: 2 major ways to get started to accurately capture private domain traffic!

4. Promotion and marketing: A brief discussion on vlog’s brand marketing and traffic monetization!

5. User operation: user growth in the post-traffic era!

6. Online marketing promotion: How to spend big money? Fine-tuned operation of large traffic!

7. Is the popular “private domain traffic” really that powerful?

8. 9 thoughts behind private domain traffic, fission, and sinking market

Author: Wang Yanfei

Source: Jianfa Operation