The underlying logic of Qianchuan’s algorithm

The second stage: After word of mouth is divided and 1,000 orders are completed, it is the learning period store

The third stage: After completing 1,000 orders, it is a mature store

For stores in the first stage of the cold start-up period, if it is a purely paid live broadcast room, you can start investing as soon as the broadcast starts, add tags on dou+, and invest in transactions on Qianchuan. It will cost about 300-500 on dou+, and invest in views, clicks, and comments respectively, so that the system can quickly understand your e-commerce attributes. Qianchuan only needs to invest in transactions, and no longer needs to invest in clicks and views. As long as the Qianchuan account has one type of label, it is a transaction.

If it is a partially paid live broadcast room (payment is less than 70%), then there are two options. The first is to invest nothing at this stage and see how the natural traffic of the account is, and then compare it with the later payment intervention. The second way is to invest as soon as the show starts. The method is the same as mentioned above, use dou+ to tag, use Qianchuan to complete the transaction, or just use dou+ to tag.

Neither of the two methods is necessarily better. It depends on which one is suitable for your team. In the absence of large financial support, the second method of using only dou+ to add tags (which can be done with just a few hundred dollars) is more recommended. If operated properly, the audience viewing of the next game will still be greatly improved.

The ratio between pure payment and partial payment is 70%. If the paid traffic in the live broadcast room exceeds 70%, it will trigger the system threshold and reduce the recommendation of natural traffic. When you decide to set up a purely paid live broadcast room, you must be prepared that the system will not give you any natural traffic. You should thank Master Zhang for every extra natural traffic you get!

The second stage is the learning period store. Whether it is a purely paid or partially paid live broadcast room, this stage has only one goal, which is to target the target audience accurately. How do you know whether the account population is accurate or not? The way is to calculate the percentage of order plans every day. Today, 10 plans are created, 2 plans have orders, and tomorrow 3 plans will have orders. This means improvement. If the percentage of order plans is maintained above 40%, the account population can be initially accurate. The point to note is: it must be invested using a professional plan.

Even if the express plan is issued, there is no accuracy. The Speed ​​Plan is equivalent to autonomous driving, which is very comfortable to use, but its ROI and stability are uncontrollable. At the beginning, I would definitely recommend that you use the professional plan. High-quality and controllable e-commerce traffic is all here. The improvement of ROI mentioned in the next article can also be achieved through professional planning.

The third stage is a mature store. During the learning period, we have precisely targeted the target audience. The focus of this stage is to improve ROI. An important technical operation to improve ROI is to continuously lower bids and continuously reduce conversion costs.

This also explains why it is difficult to improve ROI with the Speed ​​Plan. One of the reasons is that it does not require bidding and there is no way to lower conversion costs. It all depends on the system.

Regardless of whether it is direct investment or video investment, in the early stage we have to offer a price that can generate volume. In the mid-term, we will stabilize this price to get some volume and establish a transaction model. In the mid-to-late stage, we will slowly lower the bid once we have a model. The price reduction operation is not based on the original plan, but a new plan. Lower it slowly, a few cents or a dollar or two, so that the system can steadily lower the bidding model. If you reduce the volume too much at once for a long time, it is easy to run out of volume.

After exposure, the next step is to place orders. If no orders are placed, the plan will not spend any more money, which means that the system cannot find your user base and there is no feedback, so the plan is dead.

When we bid 50 yuan, it means that the system will use this 50 yuan to find someone to put it in your live broadcast room. What kind of people to find depends largely on the users who have made transactions in your account history and the relevant data of these users. When the plan starts to place orders, the system will find people based on the group of people who place orders. For multi-product live broadcast rooms, the amount of the first few orders is very important. In Qianchuan, this data is called the average order amount of the advertisement.

Before the system pulls people into your live broadcast room, it has already calculated the user's consumption categories and amounts. What you need to do is to continuously bring those people who are calculated more accurately by the system into your live broadcast room. This action is called improving the accuracy of the crowd.

Sometimes the live broadcast room converts some users into orders, but in fact it is the system that converts the users. For example, the system algorithm calculates that the user will purchase a spring children's jacket, and based on previous consumption levels, the consumption amount this time is between 69-99. At this time, the user will be placed in the corresponding live broadcast room that sells children's jackets with a price range of 69-99. Of course, the actual algorithm is more complicated than this, but the principle is simply like this, and everything is under the control of the system.

Another advantage over direct investment is that the bid can be a little higher. There are still some advantages in competing for the crowd in the system. The bids for videos in different categories are about 20%-50% higher than direct investment. If you want to bid on both, it is best to use different accounts to avoid affecting each other's bids.

Let me focus on direct investment. This is a relatively less used method. In my opinion, it is very good. First, it avoids the internal competition in the production of high-quality videos. You no longer have to work hard on the video. You can attract users in the first 3 seconds, and you don’t have to worry about finding various selling points, finding voice-overs, and finding people to shoot and edit. Second, it is highly efficient. Different targeted plans can be created anytime and anywhere, and one person can invest in them. Third, the ROI is high. If you operate direct investment in a methodical way, the ROI can easily exceed the average level of the category. (The specific operation method will be discussed in the next article)

Direct investment generally requires that there are more than 30 people naturally online in the live broadcast room. If used, the anchor can basically catch it. The corresponding amount is released according to the anchor's ability. It is necessary to count how much money is consumed every 5 minutes so that the conversion of the live broadcast room can keep up. Blindly releasing large amounts will waste the opportunity to build a model. Assuming that the team can now catch 50 yuan of traffic in 5 minutes, it can slowly increase to 60-80 yuan in the next few days. If there are less than 30 people online, it is recommended to use video delivery.

Regarding Qianchuan's advertising, whether to choose to invest intermittently or throughout the live broadcast, it must be invested throughout the entire process to maintain a continuous inflow of paid traffic. Of course, invest more when the conversion is good, and invest less when the conversion is not good. The plan will be interrupted after stopping the investment in the middle, and the high ROI of such a plan may not be continued after a period of time. The plan will die if it is turned on and off repeatedly. It is best not to touch a high ROI plan. Do not turn it off when it is broadcasting, and do not turn it off when it is off. It will run automatically again when the broadcast starts the next day. After creating the plan, do not change any of the targeted content, just adjust the budget and bid. To change the direction, create a new plan operation.

There is a very important logical fallacy: a good plan is inherently good; don’t rely on operating a bad plan into a good one.