The five major giants joined hands with Youpengpule to create the highest bidding advertising resources. Smart TVs showed their monetization capabilities

In the past two years, the Internet TV industry has developed rapidly. While many Internet companies have entered the TV industry, traditional TV companies have also joined the competition in Internet TV. For smart interactive TV, advertising is seen as one of the important means for manufacturers to make profits in the future.

Boot ads are the most direct source of profit for smart TVs, and inserting ads when the TV is turned on is also the most common practice in the industry. However, traditional TV companies often fight on their own, and it is difficult for them to get high advertising fees on the Internet, a battlefield they are not familiar with.

The weak one attacks the strong one. Recently, the five major TV giants, Skyworth, TCL, Hisense, Konka and Changhong, have reached an important cooperation agreement with Upengpule. During the 2016 Spring Festival, the startup advertisements of the five major brands of smart TVs will be broadcasted online in a unified manner for the first time, which has become the focus of attention in the industry for a while.

Build a platform to influence layout

Currently, smart TVs are in a stage of rapid development. In 2015, the penetration rate of smart TVs will reach 85%, which means that the sales volume of smart TVs in China has increased by at least 30 million, and the cumulative shipment volume has exceeded 100 million. If each smart TV is regarded as a terminal, then the large number of smart TVs connected to the Internet is a huge online community platform.

Industry insiders said that if the number of smart TV startup ads reaches 5 million, its influence will be comparable to Hunan Satellite TV. This time, the five major TV companies, Skyworth, TCL, Hisense, Konka and Changhong, have gathered more than 55 million terminals, which can affect nearly 300 million viewers. Only the Spring Festival Gala can match its influence.

At the same time, the penetration rate of smart TVs will continue to rise. Data shows that the penetration rate of smart TVs reached 72% in the first three quarters of this year, and is expected to reach 85% by next year, which means that smart networking will become a standard feature of TVs by next year. In the future, the smart TV community will be a market with huge potential, and the influence of smart TV startup ads will only increase, and the price of startup ads will only get higher and higher. It is predicted that the market value of smart TV ads will reach RMB 8 billion by then and RMB 20 billion in 2020.

The agreement reached between the five giants and Youpengpule to jointly create a new "phenomenal" TV advertising product is an attempt to build a new publicity platform. This will break the previous situation where each manufacturer acts independently, and this move will also have a profound impact on the future smart TV industry and Internet advertising layout. Once this attempt is successful, the smart TV advertising business may enter a new "great era".

Strong cooperation leads to the emergence of the best bidder

The agreement reached between the five giants and Youpengpule is not only an attempt to build a new publicity platform, but also a joint effort to seek stronger monetization capabilities.

In the Internet industry, there is such a formula: users = traffic = money. The five giants have gathered more than 55 million terminals, and the golden period of the Spring Festival is when the Chinese people reunite with their families to celebrate the festival, and the TV power-on rate will reach the highest level of the year.

In short, in this agreement, from the 23rd day of the twelfth lunar month to the 15th day of the first lunar month, during the golden period of the Spring Festival, the total amount of online advertising can reach more than 55 million households per day according to the advertiser's demand. Based on an average of 5 people per household, the number of people that can be reached and covered is close to 300 million, and the number of times the startup advertisement is played per day will exceed 160 million. Based on this estimate, this advertisement may become the single TV startup advertisement with the highest exposure in the industry.

At the same time, data shows that this year China's digital advertising expenditure will exceed 30 billion US dollars, accounting for 43.6% of media advertising. By 2017, digital advertising will account for more than half of media advertising. From the above data, it can be seen that China's Internet advertising market contains huge development value. If there is no such alliance, the loss of profits of each smart TV manufacturer in such a prime time is definitely not something that can be simply calculated by division.

Together they are strong, alone they are weak. The five major TV manufacturers have all handed over their startup ads to Youpengpule as the exclusive agent, and the startup ad resources are only 10 seconds. The golden resources will be sold to the only advertiser, striving to use the extremely scarce golden resources to focus on improving the advertising effect of advertisers during the Spring Festival. The influence brought by the five giants joining forces is definitely not something that can be achieved by one person alone.

Such domineering behavior shows its ambition - for the first time, the Internet TV industry has spoken with a unified voice with collective strength, and has demonstrated the huge commercial value and monetization capabilities of smart TVs to the entire industry, advertisers and the majority of users.

The value of the Spring Festival advertising resources created by the five major TV giants with all their Internet TV terminals is difficult to measure using conventional TV advertising or video website advertising measurement methods. But there is no doubt that this advertisement will be the "highest bidder" advertising resource during the 2016 Spring Festival, and will also become the first "highest bidder" in the history of Internet TV advertising.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.