Byte Traffic Business Scriptures: Monounted early, sewing money bags, all in selling goods

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Author 丨 Gu Fu

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As the pole of the Chinese Internet, the byte beating known as the APP factory is the most widely circulated by the outside world is the quite mysterious algorithm mechanism and the unlimited flow of Douyin.

Under the blessing of this halo, the byte beating is omnipotent, and the business boundaries are gradually becoming more and more blurred in continuous expansion.

However, on June 17, the media reported that the two business lines of bytes and education were layoffs. It seemed that it began to shrink across the board in other new business areas other than Douyin.

Some analysts believe that there is no ability to monetize at present, and there is no possibility of monetization in the future. It is the main reason why byte beating and starting to shrink the new business.

Obviously, as a business company, even if the organizational ability has no boundaries, the final expansion considerations must return to the origin of the realm of monetization.

Regarding the realization of bytes, the latest data is from Reuters reports, and the total revenue in 2021 is about 368 billion yuan. Even though the growth rate slows down from the previous year, it is equivalent to a daily income of 1 billion yuan.

What level is this realization ability? From the perspective of the traffic side, the overall monthly living of the products of the byte beating is 1.9 billion, which is equivalent to two users of 2 users per month to contribute 1 yuan. It is difficult to find an opponent in this level.

Some media have been calculated with the revenue of byte 2020: In the Internet company that also provides free products to focus on traffic, and then rely on advertising, the eighth year of the byte beating is three times the same period of Google, Facebook 6 times, more than 70 times of Baidu.

Not only that, in terms of personnel configuration, the number of content teams and commercialized teams of byte beating are almost the same.

As a company of 100,000 people, there are more than 20,000 formal content review teams before the byte. The commercialization team, which is responsible for monetizing, is also about 20,000 commercial teams, including huge engines.

If you see the boundaryless ability of bytes in the perspective of the APP factory, then to realize the development history of bytes to realize this origin, it may not be so fresh.

01 monetization should be early

Most Internet companies have always lagged behind growth, so they have the global entrepreneurial characteristics that has burned money and financing.

As the new generation of Internet startups, the byte beating is not the case. Zhang Yiming, who has always emphasized the delay of satisfaction, does not exist in realizing this matter.

In the Jinqiu Homeland near Zhichun Road in 2012, Zhang Yiming took millions of RMB investments and opened the road of entrepreneurship with 30 people. At the end of the same year, the first product of the byte was launched today. After a few months, the team conducted a brainstorm.

In the office on the 6th floor of Jinqiu Home, Zhang Yiming called all product managers and software engineers to conduct discussions on the theme "Personalized Recommendation Engine". The realization as one of the topics was also taken into account.

At that time, the entire industry had no confidence in mobile Internet advertisements. On the one hand, the mobile phone screen is too small, and the advertisements that can be accommodated are limited. On the other hand, the conversion rates such as banner and integral walls were very low, and the user experience was not good.

After discussion, Zhang Yiming believes that the information flow advertisement form of personalized recommendation can fundamentally solve the problem. Finally, in September 2013, just half a year after the official launch of the headline today, Zhang Lidong completed the direction verification from the first advertising business found from Gome's Beipingzhuang Store.

When Zhang Yiming was shared inside, he gave his father a car to his father on the 17th birthday of Jobs. Although the car was very broken at the time, Jobs believed that But Still It is a Car.

It is also this year that Baidu, which is mainly searching for advertising, surpassed CCTV and became the largest advertising media in China. At the same time, Baidu did two actions. One was to acquire 91 assistants at $ 1.9 billion to master the entrance to the mobile Internet.

The other is to aim at Tencent with competitive eyes. The biggest competitor that considers the future search for advertising is Tencent based on mobile social advertising.

In 2011, Baidu CEO Li Yanhong explained to Wall Street investors in the social era. It believes that Baidu's strategy and planning is the integration of social elements into core products, not to develop a social networking site alone.

In this direction, on September 2, 2011, when Li Yanhong released Baidu's new homepage on the "Baidu World" stage, official announcement was one of the signs of Baidu entering the era of social networks. Since then, adding social elements to existing products has become the core direction of Baidu.

Not only Baidu, the BAT eyes of the same period were only competing with each other, mainly for social, search, and e -commerce business models. No one may realize that in the small screen of the mobile phone, BAT's judgment eventually made a mistake.

Globally, successfully challenging the search advertising model, in the era of mobile Internet, it has become the mainstream of the information flow advertisement. Thanks to the information flow, Facebook and Google are fighting in the global market, while in China, it is a byte -by -by -line counterattack Baidu and Tencent.

In 2016, the annual target of 6 billion revenue was completed 10 months in advance today. Advertising investment in the total proportion of Social GDP is basically constant. Today, when the headlines rely on information flow advertising to realize the wind, it undoubtedly stabbed Baidu's chest. Baidu, which has been in mobile social direction, did not officially launch information flow until mid -2016. However, it was one step late at this time, accompanied by the impact of several major negative events, Baidu, who lost behind in the mobile era, had to jump all in the next smart age.

On the other hand, the byte beating began to dig the advertising talents of Baidu crazy, setting up a comprehensive sales team, while monetizing it crazy, spending money on a team to form a team. At that time, insiders broke the news that today's headlines plan for information flow advertising is 15 billion revenue targets in 2017, 30-50 billion yuan in 2018, and reached 100 billion in revenue in 2020.

What level is this expectation? Taking the 2018 byte beating revenue as an example, converting into ARPU (single user income), today's headline ARPU is about 185 yuan (user 254 million and 47 billion income). At the same time, the ARPU of Tencent's social advertising was about 40 yuan (WeChat users were 1 billion, and social advertising was 39.8 billion).

However, with the total revenue of the intective jump in 2018 reached 50 billion, another monetous watershed began to appear. In this year, the core revenue of byte beating comes from the advertising revenue contributed by today's headlines, from 5 billion yuan in 2016 to 47 billion yuan in 2018.

However, according to data in the third quarter of 2018 released by QuestMobile, the total use of the total use time of the headline app has declined for the first time. Among them, today's Toutiao Application has a monthly active amount of 199 million active households. From July 2017, its month -on -year growth rate began to double -digit. But the growth rate was only 14.5%.

When the flow information flow of the Japanese headline today declines, the Douyin representing the short video information flow began to go to the stage after 2018.

02 money bag landing and bottoming out

If the main opponent in the first half is Baidu, which is mainly searching for advertising, then in the second half, the byte beating has officially entered the systemic monetization mode. With the rapid rise of short videos, a set of monetization systems with Douyin as the core began.

The launch of a series of flow management of China Taiwan has become the main action of further acceleration of the commercialization of bytes.

In July 2018, Douyin launched the "Star Map Platform", which mainly connected the brand owner, MCN company, and star expert to conduct content transactions. In August of the same year, today's headlines released a pangolin alliance in Beijing to target Baidu Alliance to further consolidate the advantages of the existing information flow advertising business.

In 2019, a huge number of engines were released to the outside world, symbolizing the official landing of the money bag. When exploring the business monetization model in 2013, the prototype of "think of things a lot and complete, decide to build a complete system", huge engines have already existed as a kind of thought and goal internally.

The huge engine is actually a number of digitals inside the byte. It mainly manages its commercial monetization of today's headlines, Douyin, watermelon videos, understanding of the emperor, Faceu, Que Meng, light -face camera and other traffic products matrices.

In addition to the rich internal advertising flow resources, it has 700 million daily live user data, integrating the hearts of the Banqi Flow Alliance in the TOP 100 APP in the foreign internal TOP 100 APP. In 2022, even the overseas TIKTOK traffic monetization was also included in this unified management entrance.

After the release of huge engines, the advertising revenue of the interest beating in 2019 also exceeded 100 billion yuan to 120 billion yuan, and the growth rate of three years from 2017-2019 exceeded 150%.

However, when the money bag landed, the advertising business, which is mainly based on traffic sales, also began to bottom out.

At the "CEO Face -to -face" conference held in June 2021, the new CEO Liang Rubo first disclosed the company's financial situation in the previous year -the overall actual revenue of the group level was 236.6 billion yuan, an increase of 111%year -on -year, and the operating loss reached 14.7 billion. Yuan.

Regarding the cause of losses, the group believes that the number of employees of nearly 110,000 people around the world is the main factor. In the era of information flow advertising, the high revenue of byte beating has been based on the explosive traffic brought by excellent products + nearly 20,000 advertising sales teams built by high salaries.

The weakness of the realization of information flow advertising was officially confirmed that at the full meeting held by the byte beating commercialization product department on November 18, 2021, it publicly claimed that its domestic advertising revenue has stopped growing in the past six months.

According to media reports, the income from Douyin has stopped growing, while another core product is even on the verge of losing money today. The top of the information flow advertising revenue has basically announced that the revenue of bytes bid farewell to the barbaric growth stage.

Therefore, in addition to the unified management of the traffic side, in addition to the information flow advertisement, turning to e -commerce to find a new monetization model has become the main direction of a huge volume. The brand advertising marketing that joins the realization of e -commerce, and the benchmark is mainly based on the digital marketing of Ali Group, which is mainly e -commerce business.

03 Selling goods penetrated into every byte

From the advertising trafficking of information flow to the brand marketing of e -commerce business, huge engines are the most valuable Chinese brand award on the list of business solutions and technology services. As the only marketing service brand that appears on the list, to a certain extent, it represents the stage of advertising marketing industry from traffic to king to the importance of the brand.

However, compared with honor, how to create more new traffic on the basis of existing product users is a huge number of engines paying more attention. In September 2020, the search advertising service was launched in September, and returned to aiming at Baidu's traditional search advertising business form.

In addition to the new traffic, the e -commerce business penetrates from the 700 million traffic user pool of Douyin to the pores of each product of 1.9 billion users under the byte. E -commerce is put on the table.

The difference between the so -called interest e -commerce and the entire e -commerce company is that the important significance of Douyin has been explored in three stages of short video with goods → Live Live and Capital → brand store broadcasting and bringing goods. E -commerce has begun to fully get out of Douyin short videos, out of the Douyin live room, and will enter every information flow product under the byte.

At present, the attitude of byte beating on the e -commerce business is quite a bit of Baidu's attitude towards social business in 2011. It was just that Li Yanhong emphasized to add social elements to all products, and today's byte beating emphasizes the addition of e -commerce elements to all products.

In terms of social products, Baidu aimed at Tencent, and was eventually beat by byte beating and drawing in the form of information flow advertising. Now on the e -commerce business, when bytes aim at Ali and all in the global e -commerce, what will the final result will be?

No one can unknown the prophets, but it is certain that the byte beating towards the e -commerce of the whole region has begun to start from the two forms of "content + advertising" to the three information flow recommendations of "content + advertising + e -commerce".

Previously, Facebook, the originator of information flow advertising, has been rated as the worst of the year because the relationship between the information flow advertisement and the social content has not been dealt with the relationship between the information flow advertisement and social content. I don't know if the bytes need to process content + advertising + e -commerce information flow today, will it repeat the mistakes of Facebook?

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