Exclusive analysis: 4 ways to monetize mobile Internet! (Down)

Before the analysis, let me briefly explain my definition of advertising. Many students understand advertising as traditional advertising such as print advertising and television advertising. The scope of advertising is indeed very broad. The advertising analyzed in this article refers to mobile advertising. I have classified all profit-making methods other than app distribution as advertising revenue.

What types of advertising are there?

1. news;
2. Advertising alliances ;
3. E-commerce ;
4. Niche type advertising.

The specific analysis is as follows:

news

The news here refers to an advertising form that uses news pages as a carrier and charges according to the number of visits to the news pages. This is a monetization method currently preferred by many small and medium-sized developers. It is simple and direct, and has a third-party data background. It does not deduct volume and the settlement is reliable. There are currently two mainstream ways of cooperation for News CPC. One is the cooperation of single news links, and the other is the cooperation of news aggregation pages.

Both forms of cooperation have their own advantages and disadvantages. A single news link is suitable for push. Operations staff should be arranged separately to select the latest eye-catching news of the day for push. The labor cost is high, but the click-through rate will be higher. There are not many CPs that do this kind of news. It feels like an unknown continent that not many people know about.

We have specifically developed some such clients. The quality of their pages and the level of revenue varied greatly, and most of them could not guarantee ROI. Many links were suspended after testing 10,000 to 20,000 UVs. The reason is not the authenticity of the users, but the low revenue from page ads which cannot cover the investment. However, there are one or two companies that are doing relatively well, so business students need to carefully identify and select them. Just like when we launch our product and build channels , there are more than 30 channels, which one has better quality? Only by running it yourself can you fully understand that the best one is the one that suits you.

Another type of cooperation for news aggregation pages is suitable for apps with a certain number of users. To accept this type of advertisement, you need to reserve an entrance for this type of news page separately. We have reserved an H5 entrance on the user management page. After receiving this type of news, we configure it. When the user sees the news link on the management page, it is usually the words "**headline". After clicking it, the product will be converted . If the number of apps is small, the revenue will not be that great.

Another way is to develop a news portal in the first-level column, which will have a much higher access rate. This requires weighing the pros and cons. Once the user experience is not good, it may affect the retention of our own APP. We decided to do this after referring to some awesome apps. Apps like Cheetah Clean Master, 360 Security Guard, and WiFi Master Key all have a news entry in the first-level menu. Before we have the strength to develop our own news, we can access this kind of news for cooperation. The essence of cooperation is to realize profits by directing traffic to the other party's news.

Advertising Alliance

Affiliate advertising refers to advertising platforms with a large number of advertisers, such as Tencent’s Guangdiantong , Baidu’s Baidu Alliance, and some small alliance platforms. An interesting point is that the URLs of Guangdiantong and Baidu’s advertising platforms both start with SSP, which means: Media Service Platform. I have learned something new again.

Guangdiantong’s advertising is mainly for downloads. After users click on the advertisement, they start downloading the APP. The cost per click is relatively low, about 8 cents per click, and the click-through rate is very high, which can reach 2%~5%. Baidu’s advertising is mainly traditional advertising, but there are also download ads. The unit price of traditional advertising is relatively high, 1 to 2 yuan per click, and the unit price of download advertising is lower, but still higher than that of GuangDianTong. According to our actual tests, the type of ads displayed by Baidu Alliance depends on the quality of the account. If Baidu gives a low rating to our account, it will be difficult to display traditional ads with high unit prices. According to my analysis, the data indicators that affect the quality of an account include: click-through rate, impression volume and data stability.

It has happened before. Because of a malfunction in our server, the ads could not be displayed, and the revenue for the day fluctuated greatly. After the server was repaired, the unit price of the ads did not go up, and we lost thousands of dollars every day!

Some students may be curious. Since Baidu’s unit price is high, why should we use Baidu’s? This depends on eCPM (eCPM). Although Baidu’s unit price is high, its click-through rate is very low, about 0.5%. All in all, the eCPM of Baidu and Guangdiantong are roughly the same. However, there is an experience that everyone can remember: banner ads are suitable for Baidu, and interstitial ads are suitable for Guangdiantong. In addition, to accept advertisements from these platforms, you need to connect to the SDK and apply for the advertising interface and advertising type from the other party's backend.

We have also taken over the alliance of small platforms, and there are profits, haha. I always feel that the advertising filling of small platforms is unreliable. No matter how much you refresh, it’s always the same few ads, so the revenue is naturally not going to increase. So I suggest that advertising on small platforms can be used as a supplement, not the focus.

When we accept these advertising alliances, we still have a question. Our own business is capable of receiving download and click advertisements, so why should we accept third-party alliance advertisements? The click price given by both Baidu and Guangdiantong is obviously lower than that of our own access. This involves the issue of efficiency. It is also calculated based on eCPM. After calculation, it is found that due to insufficient padding, the eCPM of running one's own ads is only about 1 to 2 yuan, while the third party can achieve 6 to 10 yuan.

E-commerce advertising

As the name suggests, it means an advertising link for selling products. These advertising links are mostly mobile phones, belts, Buddha amulets, underwear, etc. In fact, they are not very formal products. We all know that the profit of ordinary goods is only 10 to 20 points, which is not enough to support its advertising costs. Therefore, the products that can place such advertisements are generally not very formal, that is, the profit margins are super high, ridiculously high. Many of us may have seen this kind of advertisement. It is easy to see this kind of advertisement in wifi and news apps.

This type of advertising is evaluated on the order rate. For example, if there are 10,000 visiting users, what is the actual number of effective orders? If the effect is poor, cooperation will be terminated. This way, advertisers’ favorite fixed entrances within the APP, such as advertising spaces in the information flow , embedded e-commerce entrances, etc. If you use push promotion method, you must screen the right audience. User awareness in third- and fourth-tier cities is relatively low, so the order rate will be better. Take mobile phones for example, do you believe that you can buy an iPhone 7 for more than a thousand yuan? I am smart enough not to believe it, but I cannot rule out the possibility that others may not believe it. A friend came to me before and said that he saw an iPhone 7 on the Internet. It was very cheap, only a few hundred dollars, and asked me what I thought of it. Of course you can’t buy it!

Most of the e-commerce advertisements we see in the group are from second-hand dealers. Even if we ask the business department to dig out such advertisements, it is difficult to find first-hand ones. They are really hidden. Why? Buddha said it cannot be explained. In fact, there will be contact information on the advertising page. If it contains a mobile phone number, then it can be judged that this is done by an individual who is the kind who will make a quick buck and leave. Some users have complained to us before, saying that this is not a good way to do things. If your purpose is not purely for profit, it is recommended that you do not accept such advertisements.

Niche product advertising

For example: fortune-telling, naming, zodiac, and treasure hunting. It is not very common, it is a periodic release. Fortune telling is usually more common before the New Year. After users leave their personal information, they will be told about their fortune for the following year. If you want to see the details, you have to pay through Alipay . It’s similar to paying someone to interpret the fortune. We’ve tried some of them, but the overall results weren’t very good. It's a niche product, not mainstream.

What are the forms of advertising?

1. Banner
2. Information Flow
3. Notification Bar
4. table plaque
5. full screen
6. Suspension

Banner

The main form of advertising is copied from the PC side. Whether it is an application or a stand-alone product, you can find banner ads in it. Due to the differences in physical properties between mobile devices and PCs, the effect of banner ads on mobile devices is much worse than that on PCs.

At the beginning, our app market also followed the public's practice and created banner advertising space. After running it, the click rate is only about 1%, which is far less than the click rate of the icon in the same position. Clicking the icon will directly download, while clicking the banner will lead to the landing page . Even if a 10% conversion rate is added in between, the data is still too terrible to look at. Therefore, many APPs have cancelled banner advertising space.

For most APP developers, data analysis cannot be done in such detail, so we can still see banner locations in many APPs. This also depends on the product type. If stand-alone games do not charge, banner ads are still their main way of monetization.

However, later on, because we connected to Baidu Alliance’s advertising, we added banner ads at other entrances. Why? Because there will be revenue when the alliance’s banner ads are clicked. Smart operations can find ways to guide users to click. As long as the click rate is not too high, there will be no risk of being blocked.

It is very important to remember that if our ad click-through rate is much higher than the normal range, there will be a risk of suspension or account blocking. What does account blocking mean? I just can’t get a single cent of the advertising money I spent.

Information Flow

Information flow is currently the most effective form of advertising, and it has also been proven to be the most effective form of APP monetization. This can be seen from the fact that Baidu, Tencent, and 360 have all begun to deploy heavy resources in information flow. The most well-known example of information flow advertising is WeChat Moments advertising . I believe everyone still remembers the first information flow advertisement in the circle of friends , BMW, vivo and Coke. People don’t want Coke, they want to see BMW!

The advantage of information flow advertising is that it causes minimal disturbance to users and is integrated into the information. If you don’t look carefully, it is almost impossible to tell that it is an advertisement. In order to avoid misleading users, the State Administration for Industry and Commerce requires that all advertisements must contain the word "advertisement". Such requirements are also helpful to our colleagues in operations, especially when doing advertising analysis, they can use this to distinguish which are advertisements and which are information. Secondly, the click-through rate and conversion rate are very high, and its click-through rate is more than twice that of the banner. Currently, the larger information flow advertising platforms include: Zhihuitui , Guangdiantong, Toutiao , Fuyi, etc.

Notification Bar

Advertisements are pushed via push and displayed in the notification bar of the mobile phone. Users click to jump to the landing page. The click-through rate of notification bar ads is around 1% to 5%. Products with fewer daily active users are not suitable for push notifications. For example, for an app with 50,000 daily active users, if the click-through rate is 1%, there are 500 users who open the app. If we calculate it based on 0.3 cents per user, that means 15 yuan.

The push operation can be done in your own background or on a third-party platform. We provide two ways to add Umeng in the background. I recommend using Umeng’s push, which is more stable and has a faster delivery time. It also supports presets and accurate push notifications for users with different tags. We usually push all of them. After all, the volume of precise push is smaller and the conversion effect is difficult to evaluate.

Interstitial and fullscreen

An advertising format with a higher click-through rate than information flow advertising. It’s not that the ad is so attractive, but that the ad is so large that many users click on it by mistake. The click-through rate of interstitial ads can reach 5%, and the click-through rate of full-screen ads can reach 20%. Isn’t that amazing? For products that urgently need to be monetized, this form of advertising can be considered. Any user behavior, such as swiping left or clicking a button, can be set to trigger interstitial ads. The revenue will definitely increase very quickly, but of course the loss will also be very fast.

I have also seen interstitial ads pop up on H5 news pages, and the experience made me want to throw my phone away at any moment. This form of advertising was developed by a well-known manufacturer.

Suspension

This is a killer form of advertising, with an absurdly high click-through rate and an extremely poor user experience. This is also an advertising format developed by a well-known company. It was removed after a few days of internal testing. I guess it affected the revenue of other ads on the page. However, for developers who are eager to monetize, this is worth a try.

What are the billing methods for advertising?

1. CPC
2. CPM
3. CPT

CPC

More than 99% of the billing methods are CPC, which means charging based on clicks. 100% of the advertising we accept is based on CPC. There is a fee for every click, and in the end, it feels like the idea is to lure users into clicking on ads.

The price per click varies. For news, it is in cents, with 2 to 5 cents per UV (unique user). Generally, CNZZ or Baidu Statistics can be used for monitoring. There is a conclusion that any data given to CNZZ's backend can be understood as undeducted data and can be used as the real data. The unit of measurement for e-commerce is gross, 2 to 3 cents per UV. The monitoring method is the same. Why is there such a big gap between the two? My conclusion at the time was the promotion cycle. News-related content can be promoted every day, with one day as a cycle. Opening the link on the second day will not affect advertising revenue. As for e-commerce, the purpose is to launder users. After a wave of users are laundered, the value will be very low. The promotion period is limited.

The average unit price of information flow advertising starts at 40 cents, and bids are made based on auction prices. Generally speaking, it costs about 1 yuan per click. If there are many competing products, the price can reach 2 yuan. If it is a small APP, you can accept information flow advertising at a fixed price of 0.2 cents per click.

CPM

Charges are based on the number of impressions. This form is less common. We have talked about it before, but basically there was no cooperation. We use CPM as a standard to measure the value of advertising space. For example, for the same ad space, the CPM for application distribution may be 3 yuan, for news it may be 4 yuan, and for information flow it may be 6 yuan. Then we will fix this position as information flow advertising.

CPT

The publication price is mainly for brand exposure. The advertisers we come into contact with are all performance-based advertising, so there is no need to understand CPT for the time being. Of course, if you are ranked in the top three in the industry, you still have to do CPT. Those who do CPT generally have a brand to endorse them, otherwise they won’t be able to sell at a high price.

What are the forms of advertising access?

• SDK
• API
• H5 Links

SDK

To meet the needs of large platforms and advertising platforms, the development cycle is long and it is not easy to adjust. Unless it is a stable, long-term cooperative platform, it is best not to connect to it.

API

The experience is good and access is convenient. But there will be volume requirements. It is generally difficult to apply for. I guess the demand for advertising has not been fully released. After a period of time, when the demand increases greatly and the API access process is improved, this access will be much more convenient.

H5

It is currently a more flexible and mainstream method. After the application for Baidu Content Alliance is approved, it is also an H5 link. News are also in the form of H5 links. It is easier to turn around if the link is not effective, so you can change it immediately. Individual news links are all in H5 format. Sometimes, the other party will give us more than 20 links at a time to direct traffic to us. These are all seductive articles found on the Internet. Men like to read them, you know. The tempting news I pushed before, the number of page views by a single user increased dramatically in the second half of the night. It was a rigid demand.

The above are all the ways of advertising monetization that I know of so far. There will definitely be more new ways of making profits invented in the future. Just listen more, watch more, and try more. Monetization is actually a very simple thing.

Mobile application product promotion service: APP promotion service Qinggua Media advertising

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