Internal & external network data hybrid

Morketing Interview with AdTiming CEO, Leo Yang-Part 2

2017-07-20

Leo Yang: Every one traffic shock is a new opportunity offor advertising companiesy.

杨欢欢:每一波流量震荡,都是广告公司的新机会点

"Each wave of rising advertising companies appear when there is a huge change or turbulence about traffic ". In the November of 2015, Leo Yang, who was the head of the product atin Emar made thise point on Zhihu.

After one year and a half, "Traffic growth appears," he seized the opportunity to set up to create AdTiming with his friends.

Nowadays, AdTiming has beenwas included in the DSP (including DMP) section for the latest release of the " programmatic Purchasing market chain map" from Iresearch.

he cut into DSP when the whole market was not recognized. Recently, Morketing interviewed Yang, and he shared some different points of view about the internet marketing, along with the opportunities in his vision.

Except for the first two timings Leo mentioned in part 1, we will continue with his explanations in this report.

 

Timing3:Native and Information Flow Advertisement

In a recent report by MediaRadar, the data showed that native AD purchase was the biggest increase in all forms of advertising, which was up to 74%. Demand for native advertisement had been tripled since January 2015.

According to MediaRadar analysis, this was driven by the inherent advantages of native advertisementads, while many advertisers believed that native advertising ads delivery was more transparent.

AdTiming also saw the trend of native advertisementads to, so put particular emphasis on the native and information flow advertisement in numerous AD campaigns.

Traffic trends was the reason for thishe choice.

Yang believed that traffic was people's attention, and advertising was dependent on attached to traffic. From the side of advertising, as long as the traffic was large enough to obtain the users’ information, the ads effect would be improved. The new scenes and opportunities that we could see for now wereare all about doing better withon the consistency of content and advertisement. Native and information flownewsfeed advertisements were bound together to the content, so their effects are naturally was better than banner and other display advertisement forms naturally.

At present, AdTiming adopted the business model of "DSP +Ad Network" at the traffic procurement sidefor media buying. AdTiming coversed a total of 1 billion mobile traffic worldwide for each day, mainly about SDK, API and commercial WIFI. Meanwhile, it also connected numerous overseas Ad exchanges.

DSP valued the quality of traffic in China. Advertising companies had their own AD networks, which could help them to control the traffic quality better.

"Chinese In China, the traffic is more closed than abroad. The best media traffic is naturally left to the straight customers, and the rest remaining traffic will be competedbid in the open market. If DSP wants to get high quality traffic, it can only purchase and form its own traffic pool apart from PMP, which is also the reason why there are so many DSP+Ad Network existing in China.” Yang explained.

Yang introduced that now the big traffic side were unwilling to share excellent traffic, and the media’s advertising technology ability was relatively weak, which made the transacting generation and bidding mode very complicated, alongside the lack of ROI, andso those caused the PMP partially backward. In order to solve such problems, AdTiming delivers ads ed correspondingly via PMP, and on the other hand, AdTiming operates the deliveryd through media package method.

 

Timing4:Rational acknowledge of DSP,Returns to the origin

It is difficult to say whether DSP was a good choice at present, apart from too many peers competition, advertisers also began to concern.

For example, Marc Pritchard, CBO of P&G, said that he was "not going to waste time and money in a bad media supply chain", and began to cut the advertising cost and the list of agents, even was taken away the title of "The Biggest advertiser" by Comcast due to this.

"This is a backlash from advertisers who have been cheated. People will naturally breed a feeling of being deceived if the results are not as good as expected during the process they gradually accept the new things.”

In Yang's view, DSP needed to rethink -- a lot of unrealistic promises were made when it came to selling concepts. The advertisers believed that "Once we use DSP, the effect will increase by three, four, even seven, eight times immediately ... " and which is impossible.

According to Yang's interpretation, the advertising companies could raise CTR from 1 ‰ or , 2‰ to 5‰ or, 10 ‰ by accurately optimizing. In addition, the process of marketing was works like a funnel, the first step may increase by 100%, the second step may increase by 50%, and the third step would surely be only 10%, so the increase of DSP was far less than the customer's imagination.

"The overall picture is not thatso bad this year, it is because the DSP was touted too excellent earlier, now and it's slowly returning to its nature -- advertising service industry."

Yang believed that Chinese market now came into a mature period, and the advertising budget were concentrated in the hands of big medias, which made advertising company’s budget less, and since the number of companies remained the same, so the business promotion became hard.

Companies which lacked service capacity were are likely to be eliminated meanwhile.

The whole chain of advertising was complicated, and the 4 dimensions of judgment and optimization of the four dimensions "At the right time, in the right place, for the right people, to the right advertisement", as well as optimization required a lot of staff and energy input.

Analytics about the insight into the customer behavior habit, the quality of media traffic and anti-cheating, the users’ behavior judgement, as well as the dynamic recommendation of advertisement form and content, each dimension of subdivision, all involve a lot of energy.

"The domestic Chinese DSP has not been accumulated for a long time, and in the case ofwith a large number of outstanding commercial product technicians being carved up by BAT, it is difficult for AD technology companies to break through."

As the overall industry moved towards an elaborate operation, while the advertisers were are paying attention to the follow-up effects, Yang predicted that the situation wouldill be back to normal this year, and a batch of DSP companies would survive after being integration integrated and M&A.

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