There is a big game behind Youpengpule's 500 million advertising bonus

Recently, Shao Yiding, chairman of China's largest Internet TV service provider Youpengpule, threw a strategic bomb of "500 million advertising red envelopes", which detonated the entire Internet TV industry. In the past year or so, Internet TV has ushered in new development opportunities in product iterations and policy adjustments. Looking back at the market strategy of "500 million advertising red envelopes", it is actually a careful layout for the Internet TV industry.

A single stone stirs up a thousand waves. Once the idea of ​​"500 million advertising bonus" was proposed, it attracted much attention. Shao Yiding said that Internet TV is still in its early stages of development, and its strong advertising market penetration has not yet emerged. The strategy of "500 million advertising bonus" is a preemptive investment strategy based on the future development potential of this market.

The market needs a process of cultivation. In the 2014 taxi-hailing app war, it can be seen that investing heavily in cultivating the market is not an isolated case. The 500 million yuan of golden advertising resources invested by Youpengpule this time, mainly in interstitial ads, is bound to set off a big wave.

From waving your hand to stop the car to calling a taxi via software, from traditional TV to video websites, Internet TV has become the "new normal" in the development of TV today. With the increasing overall demand for Internet TV from companies and users, according to the "White Paper on the Development of Internet TV in China", from January 2013 to April 2014, the average daily viewing time per household in China increased from 120 minutes to 140 minutes. It is not difficult to see that users are gradually returning to the living room, which further shows that Internet TV has the characteristics of autonomy and personalization, and smart home carriers are becoming a general trend.

In fact, the impact of Internet TV on traditional TV is not limited to this. According to CTR Media Intelligence data, in October 2014, the overall advertising market in China increased by 2.5% year-on-year, while the advertising expenditure of traditional media decreased by 4.4% year-on-year, and the Internet advertising expenditure increased by 35% year-on-year. Faced with the growth of Internet advertising, all parties are bound to take a share of the pie.

However, judging from the financial reports released at the beginning of 2014 and the news leaked from the industry, video websites continue to suffer huge losses. Despite the continued growth in demand, video websites still cannot share the fruits of industry dividends. In addition, traditional TV advertising is gradually sinking, which undoubtedly brings double development opportunities to Internet TV advertising.

Since Hunan TV tightened its program distribution rights last year and Mango TV became the exclusive broadcaster of many programs, Mango TV has gained content output on the one hand, and its advertising effect has also changed on the other hand. Therefore, Youpengpule's 500 million advertising bonus bet is more strategically ambitious.

People are not only asking what advantages Internet TV ads have, but also asking what advantages they have. In fact, compared with traditional TV ads, Internet TV ads have faster monetization capabilities. Take Youpengpule as an example. They have a precise big data advertising delivery system. Through real-time monitoring of platform user data, they can deliver products to users more accurately, fully guarantee the efficiency of the operation system, and realize the linkage between advertising and sales.

To explore its fundamentals, the core value of Internet TV advertising lies in its communication value. On the one hand, it can rely on big data to accurately locate the target population, and on the other hand, it can quantify the advertising costs. The investment of 500 million advertising red envelope resources is by no means the only reason that attracts advertisers to use Internet TV for integrated marketing. Its good interactivity, accuracy, and controllability are more core value.

It is understood that in the future, Youpengpule will also focus on building four platforms: first, the improvement of the home theater platform of OTT TV; second, the establishment of a precise, measurable and more friendly Internet TV advertising platform; third, the creation of a high-quality TV e-commerce platform; and fourth, the establishment of a value-added application platform based on user needs. The collective efforts of the four platforms will ultimately maximize the value of Internet TV.

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.