Shao Yiding of Youpengpule: It is unethical for Internet TV not to make a profit

"Is Internet TV good?", "Yes!"

“Is it difficult to make money on Internet TV?” “Difficult!”

This may be a true reflection of the current development of the Internet TV industry. Although the market is gradually becoming hot, it is not so easy for manufacturers in the industry chain to make profits.

On October 19, in addition to Xiaomi launching the highly anticipated Xiaomi TV 3, another major event occurred in the television industry. That is, U-Popular, the largest interactive TV content platform operator and service provider in China, hopes to realize the commercial value of Internet TV through its own efforts and together with its partners.

Internet TV will be profitable next year

"We should no longer let burning money become synonymous with the Internet economy. As a business behavior, it is unethical not to make a profit. Scale, monetization, profitability, virtuous cycle, and continued development and growth are the hard truths of business." Shao Yiding, chairman and CEO of Youpengpule, believes so.

Shao Yiding's words hit the nail on the head for the Internet TV industry. Currently, waves of TV transformation are coming one after another. Facing transformation and innovation, both traditional TV manufacturers and Internet manufacturers, as well as a large number of practitioners and developers in the industry, have always found it difficult to reverse the current situation of low profits. Advertising has brought high returns to the traditional TV industry. Internet TV, because of its direct exposure to users, improved accuracy and reach, will still be an important part of the future Internet TV monetization.

Shao Yiding believes that the huge traffic generated by interactive TV (Internet TV, two-way digital TV, IPTV) has begun to form a new huge advertising blue ocean. According to industry experts, in 2016, the total media value scale of China's interactive TV advertising monetizable resources is expected to reach 40 billion yuan. In 2016, Youpengpule expects that the total media advertising resources jointly formed with cooperating radio and television operators, telecommunications operators, and Internet TV licensees are expected to achieve a total reserve scale of nearly 8.7 billion yuan, which means that a huge advertising gold mine that is already fully expected has emerged, full of extremely attractive commercial value realization prospects.

In response to this situation, Youpengpule, together with partners such as China Media Group, Mango TV, and Nielsen Network, launched the "Internet TV Media Value Standardization Research" activity, aiming to promote in-depth research on the behavior and needs of Internet TV audiences and research on the measurement of Internet TV advertising value standards. Shao Yiding said that the results of this in-depth research will benefit the entire Internet TV industry and advertisers, and will also lay a solid foundation for the commercial value measurement standards for the entire interactive TV industry in China.

Why did Youpengpule get a 120 million yuan advertising order?

It is worth noting that today, Youpengpule has officially signed 2016 Internet TV advertising contracts with advertising strategic partners such as Taiyi Media, Juxing Media, Changrong Communication, and Xiushi Intelligence, with a total amount of 120 million yuan, which has attracted strong attention from people inside and outside the industry. The signing of this billion-yuan advertising contract is a landmark event in China's Internet TV industry, representing that after five years of rapid development, the huge commercial value of Internet TV has begun to be fully accepted and recognized by advertisers.

Among them, Cha Daocun, president of Juxing Media, said in an interview, "I am very optimistic about the advertising value of Internet TV. From the perspective of advertisers, there are three important things about a media. The first is scale. Users must reach a certain scale. If the scale is too small, it is difficult to commercialize. The second is precision. The third is partners in the industrial chain. The integrity of the value chain makes the entire business recyclable. I agree with Youpeng's concept that 2016 is the first year of commercialization of Internet TV. As a representative and leader of Internet TV, Youpengpule will have value as long as the entire industry has value."

It is understood that as early as the beginning of 2014, Youpengpule launched China's first Internet TV-exclusive advertising system, and took the lead in providing Internet TV advertising services in the industry. In addition, Youpengpule worked with Nielsen Netcom to build the first standard advertising monitoring system and user analysis system exclusively for the Internet TV industry. So far, Youpengpule has cooperated with broadcasting and television operators, telecom operators, Internet TV licensees and other partners to develop interactive TV registered user households that have exceeded 20 million (households). Based on an average of 3.5 people per household, the entire network has reached more than 71 million individual users, and the user households covered by the service are spread across 31 provinces and regions across the country. As a leading content platform operation service provider in the field of interactive TV, Youpengpule can currently provide advertisers with a variety of advertising product combinations such as basic traffic products, customized targeted products, interactive experience products, and performance marketing products to meet the advertising needs of different advertisers. Among them, customized and targeted products are unique advertising product forms in the field of Internet TV. The characteristics of precision, targeting, and family goals supported by big data are making the TV screen show a new and unique media value charm.

At present, Internet TV screens combine the display effect of traditional TV screens with the characteristics of precise delivery of Internet media. In addition, the household audience has high-quality word-of-mouth communication ability, and good audio-visual experience and interactivity are conducive to the spread of advertisements. However, it is difficult to drive the development of the entire market with the strength of only one company. As the people of Youpeng envision, the entire industry chain of Internet TV needs to cooperate with each other to finally achieve product co-construction, user sharing, and win-win benefits.

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.