Sogou Advertising Strategy Case

Let me first talk about two cases to give you an intuitive look at how the entire home furnishing and real estate industry has developed. The first example was 15 years ago in 2010, when 50-year-old Mr. A bought a new house and wanted to renovate it.

The Internet was not well developed at that time, so he found Master Li's engineering team to decorate his house on the recommendation of a friend. He went to the furniture store to select the floor tiles himself. However, two years later, the floor was leaking and there were many other problems, but he could no longer find Master Li who had decorated his house.

In fact, in the past, if we wanted to renovate our homes, we had to use our holidays or weekends to go to building material malls one by one. At that time, there were no big decoration brands, and everyone chose small teams recommended by friends to do the decoration nearby. They were not even a company. Without scale and system, service quality and after-sales service cannot be guaranteed

Industry Development Background-Current Home Decoration Scene

The second example was last year, when Ms. C, the 25-year-old daughter of Mr. A, bought a new house to renovate. At this time, she would use her usual time on the Internet to look for her favorite decoration pictures, determine the style, and also query and compare designs and prices through a special decoration platform. During the decoration process, she would also tell the designer her preferences and suggestions.

So now, if we want to renovate our homes, we tend to place orders online, and the renovations are mostly semi-packaged. At the same time, when you look at some pictures you like on the Internet, you will find a lot of channels to understand and compare them. Some products have also become popular due to the word-of-mouth effect, prompting decoration brands to imitate each other. Some decoration companies even cooperate directly with manufacturers of decorative materials and furniture brands to achieve seamless connection between consumers and products.

The industry development stage returns to its essence: home improvement companies focus on user needs and enhance the service experience during the decoration process

A comparison shows that the development of the home improvement industry has also undergone many changes in form. Comparing the experience in previous experience halls to the current online effects, the original traditional decoration industry was a field of weak brands, and it was particularly difficult to give birth to popular brands. However, now due to the recommendation nature of social media in the Internet era, it is easy for products to become good brands "from the bottom up." In terms of decoration styles, they are no longer fixed styles. Instead, consumers decorate their homes in the way they like. Consumers' requirements for decoration are becoming more and more rich and personalized. The form of the industry returns to the essence of users, allowing users to focus on demand while paying more attention to the process service performance for customers.

Market development trend: The market size is increasing year by year, and there is great potential for second-hand housing renovation

As can be seen from the above figure, from 2011 to 2019, the overall scale of the decoration market has been rising. Although the growth rate has dropped slightly this year, it still maintains an annual increase of more than 50 billion yuan.

I would also like to share a current situation. The demand for decoration is not only the initial decoration demand for newly built houses, but the demand for renovation or updating of existing houses is also increasing. In 2017, the country introduced policies emphasizing the reduction of housing inventory. Currently, second-hand housing transactions account for 35.3% of my country's total transaction volume, and the number of second-hand housing transactions in 24 cities exceeds that of new homes. Therefore, from the perspective of industry characteristics, the home improvement industry is in the post-real estate cycle. Driven by the dual wheels of increasing inventory, home improvement demand will inevitably increase significantly at the same time.

Market development trend: The demand of first- and second-tier markets is clear, and the prospects of third- and fourth-tier markets are broad.

The penetration rate in first-tier cities is close to that in developed countries

The scale of full renovation in third- and fourth-tier cities is rapidly expanding

Through the above two figures, we can more intuitively see the current development trend of the decoration industry. The market penetration rate in first-tier cities is gradually approaching that of developed countries in Europe and the United States. At the same time, the entire home improvement industry is accelerating its sinking, and the scale of decoration in third- and fourth-tier cities is rapidly expanding, and the market prospects are broad.

The transformation of consumer groups has created new demands. Consumer characteristics have changed.

We have seen the bright prospects of the home improvement industry market. Next, let's take a look at several changes in the characteristics of home improvement consumers.

In the two cases we saw at the beginning, Mr. A, who wanted to renovate his house 15 years ago, was 50 years old, and Ms. C is now 25 years old. Therefore, the age of consumers has changed greatly. Young and middle-aged people aged 20-40 are the main consumers of home decoration, accounting for as high as 79%;

At the same time, people aged 20-40 are those who live under the Internet model and are also those who demonstrate personalized consumption propositions. Their lives are inseparable from the Internet. They are more willing to try new technologies and new services, are not bound by conventions, and are keen on customized needs.

Consumer behavior trends

Another major change among consumers is the shift in consumption behavior. In fact, our own consumption habits are generally in line with this trend. We conduct inquiries and comparisons online in the early stages, and experience consumption offline. During the process, we participate in opinions and add our own ideas. Finally, we will post on WeChat Moments and Weibo to show off our new homes and comment on the merchants where we have consumed.

Through changes in consumers' age, habits, and demands (the 80s and 90s have the right to speak, the combination of online and offline, the demand for smart home furnishings, and the attention paid to corporate evaluations and reputation), we can conclude that a new home furnishing concept with the Internet as the carrier has been formed in the home furnishing industry.

Providing consumers with one-stop services and improving the decoration experience is the fundamental development of home improvement companies in the future.

.

Insights into Industry Advertising Opportunities

Under the Internet home improvement business model, business development should be promoted from four aspects: traffic, products, services, and user behavior.

Decoration Industry - Sogou Matching Insight 1. Sogou Search - China's second largest search engine

Serving more than 400 million mobile phone users every day

From 2018 to 2020, the overall decoration and renovation industry traffic showed an upward trend, among which the mobile traffic increased rapidly, and the traffic trend was inversely proportional to the trend of house prices.

Understand the active dynamics of segmented groups-find the right "time"

Compared with the weekly retrieval distribution of PC, the wireless end reaches the traffic peak on Tuesday, and the distribution fluctuations at other times are small;

Compared with the distribution of searches during computer time periods, mobile searches peaked in the afternoon and evening. The habit of using mobile phones to search anytime and anywhere also resulted in no significant changes in searches during meal times.

This is the traffic curve of PC and WAP. The yellow line is the traffic distribution on the wireless side, and the white line is PC, which is measured in weeks. Tuesday is the traffic peak, which is measured in hours. You can see the traffic peak on the PC side, which basically meets people’s daily routine needs. However, the mobile traffic is different. The traffic continues to grow in the morning, and peaks in the afternoon and night. The fragmented usage time leads to a large number of search behaviors throughout the day. The traffic of searching for home decoration on mobile phones before going to bed even exceeds that in the morning.

Understand the regional traffic distribution characteristics-find the right "local" wireless terminal

From the wireless perspective, Shandong, Jiangsu and Guangdong rank in the top three.

PC

From the PC perspective, Jiangsu, Shandong and Zhejiang rank high.

Based on the above two figures, we can see that provinces and cities with large population bases and developed coastal economies are the main search areas and account for most mobile phone searches. From the perspective of regional search volume, coastal provinces with large population bases such as Guangdong, Shandong, and Jiangsu have higher search demands.

Understand the characteristics of segmented groups-find the right "people"

Fertility Status

Property Status

Let's take a look at the characteristics of the home improvement industry on Sogou: more men are interested than women, 71% are aged 18-34, 68% have a bachelor's degree or above, 63% have children, 73% have a house, and 48% are self-employed. Judging from the distribution of the population, this group of people has good economic ability and high consumption potential;

Peak and off-season chart - find the right "timing"

According to the decoration peak and off-peak season chart, the decoration industry has the strongest demand from March to September each year, mainly because the climate and temperature are moderate;

Winter is relatively the off-season. According to data analysis, the so-called off-season is second only to the normal season. At the same time, even in the off-season, it is even more necessary for home improvement companies to "plant grass" in advance. Every time period is the best time to launch

Understand the browsing habits of segmented groups-find the right "interests"

This is the 24-hour media distribution of people who are interested in decoration from the perspective of browsing behavior. We can see that people who are interested in decoration are also paying attention to news media, social networking sites, movies, online shopping and other media channels. The interests of the people are rich and diverse.

Understand consumer focus - find the right words

From the perspective of consumer concerns, netizens are more interested in intelligence, brand, customization, and presentation effects, which verifies the point we mentioned in the first part that consumer habits have changed and they need decoration experiences and services that suit their own personality.

Especially the post-90s generation, who pay more attention to intelligence, customization and fashion.

Explore brand needs and help users improve their decision-making

Judging from the industry brand search situation (through the data of decoration brand words), the recent weekly dimension data shows that the brand search demand in the decoration industry is relatively strong, but from the current brand sales, the brand purchase rate of customers in the home decoration industry is only 5%, and customers' brand awareness is not strong, which is a big opportunity for the industry to expand;

Sogou Search: Attracting young, high-quality users

Through Sogou's various data performances, we can see that the search volume related to decoration business has increased significantly in the past two years. Users who pay attention to the decoration industry are mainly concentrated in economically developed areas, and the population is young, highly educated,

The user group of Sogou platform is highly matched with the overall Internet home improvement population. They are all full of energy, good-looking, rich, pursue individuality, love brands, etc.

Home Improvement Industry-Sogou Advertising Strategy

1. Sogou's multi-scenario integrated marketing

Business planning for three major scenarios : Search scenario: expand market share, build upstream and downstream search ecology, and cover pre-search and post-search scenarios; Input scenario: from typing tools to service platforms that connect people and information, create new marketing scenarios; Browsing scenario: expand dual-end traffic, support more flexible sales methods and more dimensional precise targeting.

The core of our thinking is that Sogou's advertising products can cover the user's online trajectory in all scenarios. Based on this feature, we will make a commercial advertising combination for the entire product according to user behavior.

2. Industry launch strategy - user behavior considerations

At the same time, we also divide user behavior into three stages: vague demand, potential demand, and brand-supported demand, in order to design a more complete and efficient delivery plan;

The first is the vague demand group, which consists of netizens who usually pay attention to decoration and are also active in other channels such as news and shopping. However, these users have not yet clarified their decoration needs.

Then there is potential demand. This group of people have already clarified their decoration needs through daily information collection, but have not yet determined the merchant and plan. This requires accurate capture of followers and the need for different scenario products to find users as soon as possible; finally, there is brand demand, which requires building brand trust with users and ultimately achieving conversion from users to customers.

3. Fuzzy demand - browsing behavior

Pay attention to various media platforms and subtly influence users

We use Sogou's information flow advertising products as a pioneer, covering netizens who usually pay attention to decoration, as well as users who are active in other channels. We reach users through multiple scenarios and channels such as search, reading, information, and travel, and subtly influence users through the active display of advertisements.

Currently, Sogou’s information flow has an average daily advertising exposure of more than 1 billion times. While having high traffic, it can cover various media platforms and display in various forms.

Large traffic and strong interaction attract young trendy users

Open screen - connect the core APP, covering five major scenarios: search, input, information, reading, and travel;

Easter eggs - innovative search interaction, accurate keyword triggering, effectively attracting interested people to click and pay attention;

Voice, video - deepen memory of brand information through voice interaction;

Interaction - attract users to participate with positive news such as lucky draws and benefits, which directly drives conversions;

Information flow product advertisements are rich in styles, and industry customers can freely combine product delivery types, which is more interesting and suitable for users who browse or browse;

Attract users' attention with rich home improvement enterprise information + interactive advertising products to explore their potential needs;

4. Potential demand - search behavior

Disassemble user needs, subdivide word categories, and accurately locate

Based on the overall thinking of the customer's investment, we expand the projects, products, brands, core, general and long-tail, and obtain the search needs of netizens by combining context, drop-down boxes, etc.

The key is to find words based on user needs. By submitting relatively broad keywords such as renderings, styles, and designs, we can find users whose needs are not particularly clear. When the needs of netizens are very clear, we need to break down their needs step by step, such as some keywords that are very clear about decoration styles, decoration process words, or quotation budget words. Finally, when users make choices, we need to use more targeted keywords such as rankings and inquiries to strengthen the user impression.

Before and after searching, fully identify user needs

At the same time, for potential users with search behavior, in addition to covering search keywords, it is also necessary to strengthen the coverage of scenarios before and after the search. Before searching, Sogou Box Direct can lock in users before searching. When users with home improvement needs enter in the QQ browser, they can see relevant advertising information and directly reach the user's target with one click, greatly shortening the conversion path. Lead marketing can lock in users after searching. Users can directly clarify their needs on the search page without a second jump, and collect high-value leads through the shortest path.

Rich styles are presented, and interest is more easily stimulated

After users search, displaying a variety of advertising styles can better stimulate user interest.

Super Crown occupies the first position of the first screen, which is 2-3 times the height of the ordinary style. It is triggered by common words and fully targets target customers.

Smart splicing supports multiple styles of splicing, which increases the display height of advertisements and provides rich display effects, which can effectively increase click-through rate.

It is recommended to update the image materials regularly, and pay attention to the connection between text and image content to ensure high relevance between the image and text;

Explicit demand: Brands add intelligence, fun, and interactive methods that are more suitable for young people

Input stream brand advertising is a unique form of advertising for Sogou, which can achieve marketing goals simultaneously during WeChat QQ chats and active searches. The product has brand exposure in social scenarios, which meets the behavioral characteristics of the industry's target population. At the same time, it is intelligent, interesting, and more in line with the interaction methods of young people.

Brand authority, eliminating the last doubts

On PC and wireless terminals, Sogou has brand advertising styles that can be triggered by both brand words and general words. The display of brand style can fully establish the authority of the enterprise, improve credibility, win the trust of consumers, comprehensively block competing products, and continuously give users consumption confidence.

Intelligent delivery mode better meets the real needs of users

All advertising strategies need to be implemented and improved through account settings and continuous optimization. The emergence of Sogou ocpc can achieve intelligent delivery, intelligently estimate the conversion rate of each traffic to customers and make intelligent bids. Save customers' labor costs and help them find "needy" netizens through big data model analysis, truly realizing the payment-based-effect model, saving time and worry.

Summary of the delivery strategy

In summary, based on the characteristics of user behavior, we summarize the strategies for the home improvement industry as follows:

1. Information flow + full matrix to attract more potential customers;

2. Use keyword segmentation + multi-scenario and multi-style coverage to accurately target user needs;

3. Finally, close the deal through brand products + intelligent delivery to build corporate reputation while ensuring results