2015年5月3日星期日

What I have learnt from writing the New Media analysis blogs

    
    
    My three essays of New Media analysis are respectively about the transaction rate of social media marketing, RTB advertising and online music in China. I went through a tough process to choose my topics. Because nowadays speaking of the Internet industry, there are countless heated themes. During this process I catched a glimpse of several new concepts that people discuss about fervently, such as the Internet of things, big data and social media marketing. In order to clarify the concepts that I write about in my essays, I also went through lots of related articles. 
  However, I find that although most of the articles include very detailed data and complicated charts, they can only be called reports but not analysis. That is why I find writing new media analysis so difficult, because you not only need to explain what can you find from the data, but also have to give suggestions about what to do next. This requires the writer to understand the whole picture of the Internet industry and also to be expert in the specific aspect that he is writing about. Although the essays I write are still pretty shallow, I have got the idea about what kind of analysis I would like to see as a reader.
    Talking about promoting and articles, I tried to share my articles to the social media such as Weibo and Wechat but find that people rarely click to check the whole article. However, I find it rather difficult to attract people to read what I have written. I think one of the reasons is that nowadays, people’s attention span is unprecedentedly short, and most of them are usually attracted by the amazing pictures and entertaining news.
    Therefore, after this practice I come up with several thoughts about how to promote the writings and ideas. Firstly, while the logical of the writing has to be clear, it is better to adopt a lively style, because nowadays nobody is willing to read a long and dull article. This requires the blogger to clarify the concepts and systems first and then explain all the things in a simple way to the readers. Secondly, it is very important to choose an attractive topic and a special angel, because there are too many columns and blogs writing about Internet analysis. You cannot stand out unless all of this uniqueness could be concluded as an interesting title to catch people’s eye immediately. At last, sharing the articles by social media is an efficient way to spread what you have written about. One of the keys for successfully promoting is to find the tipping point. That means firstly you have to share your article to a person who has strong social network and significant influence upon others, so that more and more people can help share your ideas.



Talking of making money, how can Chinese digital music industry learn from the global market?


    
    
    The music consumption on a global-scale has been experiencing big transformation, which is represented by three main characteristics: from physical to digital, from PC to mobile platform, and from downloading to online streaming. While the first two characteristics are decided by the developments of whole Internet industry, what is worth mentioning is the great growth of online streaming music. As the report of IFPI shows, the revenue of global digital music has increased by 6.9%, reaching 6.85 billion dollars in 2014. Although the income of music downloading keeps the biggest share by taking up 52% of the total income, it has actually decreased by 8% compared to 2013. On the contrary, more and more people have turned to consume online streaming music and the subscription service has become the new driving force of digital music.
    The revenue of online streaming music consisted of two parts, including ad supported streams income and subscription streams income. It could be seen that in subscription streams had increased from 18% in 2013 to 23% in 2014 of total digital music revenue, attaining 1.57 billion dollars. Meanwhile, the number of people who paid for the subscription service had also grown steadily, reaching 41 million last year. In many counties such as Sweden, Korea and Norway, the revenue of subscription streams had ran far beyond that of download. The rapid growth of subscription streaming is due to permeation of smartphones as well as the bundling partnership with telecoms to provide streaming service.


       However, when looking back at Chinese digital music industry, we find that the situation might be more complicated. Many Internet giants such as Alibaba and Tencent entered the battlefield of online music long time ago and had got ready through merging small service providers, but it may take them much longer to change the habits of Chinese users.
    First of all, according to the research of Tencent, the need for consuming online streaming music is not that strong, for that almost 60% of people just occasionally listen to music online. The main reason is that 59.2% of respondents think it costs too much traffic on their mobile phones. Secondly, there is a long way to go before the Chinese users cultivate the habit of paying for online streaming music, for that only 19% of them are now willing to pay for the music they consume. However, half of the users say they would accept the plan of paying no more than 10RMB every month for online streaming.
    Considering the success of online streaming service in the global market, the first thing Chinese digital music industry can learn is to promote the subscription service and guide the users to pay for the service. Undoubtedly, the number and the quality of music have to be the main selling point during this process. What we can see is that many music providers have already adopted this solution. For example, on Xiami although people can still consume the online streaming music for free and download each song at 0.8 RMB, if the user is willing to for 15RMB every month for membership, he will enjoy the 320kbps high-quality music and downloads 100 songs for free.
    Besides, in order to promote and get revenue from the legal music, Chinese digital music has to fight together against the pirates, for that they are the reason why Chinese users are accustomed to free music consumption. The law system needs to be completed and the punishment for pirates should be more severe. Only in this way the online music providers would pay for the copy rights and the users would pay for the users. Finally, since many people are worried about the traffic when listening to music on mobile, the music providers can also cooperate with the leading telecoms, so that they can attract the users to pay for the special traffic plans for streaming music consumption on mobile platforms.
    Chinese market is the biggest market of digital music, whose potential for revenue making would be inestimable. As long as it can learn from the global music industry to develop online streaming music and cultivate the users’ habits of paying, it will be undoubtedly prosperous in the near future.
   


Reference:
1.  Tencent(2015)2015年中国手机在线音乐调查 80%的用户未曾付费. Retrieved on May 2nd,2015 from: http://www.199it.com/archives/337689.html

2.199IT2015Nielsen SoundScan2014年音乐流媒体点播量1640亿次 同比增长54%. Retrieved on May 2nd, 2015 from: http://www.199it.com/archives/318828.html

3.IFPI(2015) Digital music report. Retrieved on May 2nd, 2015 from:

http://www.199it.com/archives/318828.html




2015年5月2日星期六

What are the advantages of RTB advertising and its challenges in the age of mobile?

    
    RTB (Real Time Bidding) is a kind of bidding technology based on the third-party technologies and the evaluation of each user’s behavior on millions of websites. The digital age is an age of fragmented information for the marketers, for that the sellers control countless terminals, and the consuming time is also split up by uncountable websites and media. The goal of RTB, which owns countless media resources and billion traffic everyday, is to help the advertisers to target accurately at their consumers in the ocean of fragmented information.

    Talking of RTB advertising, there are several concepts that cannot be ignored. The first one needs to be explained is DSP, which is called Demand side platform. It is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Demand site platform is like the central hub of RTB advertising, connecting the sell side platform, Ad Exchange and the data management platform. DMP is the second is the core part of demand site platform, which is responsible of storing and managing all the user’s data, as well as providing statistical supports when DSP makes decisions.

    As a mode that is completely based on the users, how is the process of RTB advertising realized? For exampleif a user loves cars and always check information about cars on the internet, all his data and using habbits would be kept. Once he enters the address and wants to log in a website, the publishers ask its ad server and then the Ad Exchange whether there are ads to be served or not. Later on, the Ad Exchange sends the users’ information to several DSP, which would apply for their-party data, evaluate and compute optimal bid for the advertisers. After Ad Exchange selecting the winning bid from DSPs and sending its advertisement as well as price to the publisher’s ad server, the server would send the ad to the browser for displaying and notify the DSP that the ad has been viewed. What is unbelievable is that all of these actually happen in several seconds, when the browser is loading web page for the user.
    Compared to the traditional digital advertising mode, DSP has presented obvious advantages. The first one is that it significantly improves the accuracy of marketing, for that people who see the ads are actually those who are likely to be interested. Moreover, while in the past, the marketers would use several weeks to launch an advertising plan, the DSP mode has reduced the complicated process and realized the instant ad launching.

    Looking at the report about digital advertising in China, it can be clearly seen that mobile Internet advertising has taken and would take increasing market share. Howeverthe mode of DMP is also facing lots of problems if it hopes to develop on mobile platforms. Above all, DMP needs to integrate the data through the unique ID, which is attributed to each user, so that the users’ data and characters can be collected and they can also be defined by the tags. While these could be done by the cookies on PC platforms, cookies would be useless in the APPs on mobile phones. Meanwhile, although there are indeed other ways such as IMEI, Android ID, and Apple’s IDFA, the data collection would be limited by the App’s limits of authority and the users’ privacy settings.
    Moreover, most Ad Exchange platforms have encrypted the users’ information that they send to the DSP, making if pretty challenging for the DMP to accumulate the information and combine the users’ behavior features through bidding. Therefore, facing all these challenges, only the companies who have the ability to collect as well as analyze a large amount of data have the advantages in mobile DMP. These include the mobile device manufacturers, the large-scale IT companies such as BAT, the telecom operators and the App companies that cover broad markets. They may cooperate to overcome the challenges for that mobile RTB would undoubtedly be the future of digital advertising.


References:
1.     199IT.com2014RTB 是数据和营销的完美结合. Retrieved at April, 30th, 2015 from: http://www.199it.com/archives/227914.html
2.     Sohu 2014)移动互联网广告市场,哪些公司在抢食. Retrieved at April, 30th, 2015 from: http://mt.sohu.com/20150311/n409656672.shtml
3.     PWC 2014Mobile advertising in China. Retrieved at April,30th, 2015 from: http://www.pwccn.com/webmedia/doc/635358539404587393_mobile_ad_china_cut_may2014.pdf
4.     RTB China 2015)移动DMP 盛名之下其实知易行难. Retrieved at April.30th, 2015 from: http://www.rtbchina.com/mobile-dml-is-not-an-easy-piece-at-all.html