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How Platforms Make Money？ [email protected] Four Theoretical Models Ecosphere - Octopus model Business Needs - Pyramid model Marketing Path - Grid model Harmony of Users and Customers – Volleyball model 2 The Main Business Pattern of Internet Platform - Connect Virtual service - connect user with user Y2005 vs. Y2013: 0.18 vs. 9.9 (Billion $) Advertiser - connect user with information Y2005 vs. Y2013: 0.04 vs. 5.3 (Billion $) E-commerce - connect user with product Y2005 vs. Y2013: 0.09 vs. 7.9 (Billion $) 3 The Characters of Platform Question： what is a platform？How to distinguish between platform, product and tool? Octopus, Ecosphere, not Ecological chain User(who use your product), Customer(who pay you)、partner(who help each other) the Matthew effect Ride bicycle The drinker's heart is not in the cup Real-time, continuity … ... 4 The Search Ecosphere - traditional circle The upstream channel website Downstream content advertiser Search engine 5 The Search Ecosphere - new version with Octopus feature The upstream channel website Downstream content New scenes using search Middle page advertiser Search engine Recommend search 6 The General Business Model - Pyramid Consumption ability Demand Generation Media length ADS AGENCY DEAL numbers Customer Needs Demand fulfillment Business Model Media Resource 7 The General Business Model - Pyramid Consumption ability Demand Generation Soft ads ADS Hard ads Platform agency AGENCY Merchant deal DEAL manufac turer deal Information agency numbers Customer Needs Media length Demand fulfillment Business Model Media Resource 8 The Business Ecological Environment of Internet in China 产业链 TV shopping Social ads brand implantation Display ads Taobao affiliate Google Adsense Amazon affiliate Affiliate ads Baidu Phoenix Nest Google Adwords Taobao zhitongche Search ads effect Recommended ads Amazon Baifendian Customer Needs DoubleClick For Advertiser DSP Navigation & Display Brand zone Brand landmark 客户需求 Tier 1：first pass Implantable ads branding branding+ effect Banner Video ads Newspaper ads TV ads Ad exchange Data exchange Exchange Navigation ads HAO123 HAO360 meilishuo DMP Vancl Taobao big seller Valueadded service Deal platform Wangwang Baidu shangqiao Lixianbao Tongji 商业产品 Business Model Tmall ebay Taobao mofang Baidu Sinan B2X manufacturer B2X platform TV/news paper/radio video/portal SNS/UGC//websites Tier 2：second pass Web navigation search/vertical search Tier 3： smash deal JD Amazon 媒体资源 Media Resource 9 Four Dimensions affect revenue scale - case of ads User Experience vs. Customer Needs 100 80 60 40 20 Continuous vs. Discrete search ads video ads superbowl ads social ads 0 Monopoly vs. Competition CPM vs. PV Marketing Path – based on two marketing practice The tipping point of Marketing •TV/Radio（short/expensive) •Video website •Newspaper/magazine •Outdoors/bus/metro … search we-media bbs social network Marketing Path Branding is rigid demand Extending and linkage are potential demand Evaluation of marketing effect •official website •online shops •offline stores •supermarket Audience action 3R Marketing stage Reach PV Resonate UV Engage Click share, like, poke, vote 4C Brand awareness Catch Brand Favorite Connect Purchase Close Brand loyalty Continue 3R4C Grid model React Lead Sale register, inquiry ,call pay The panorama of Media Platform - user-centered CPT sale of product/service owned-content free charge CPA/CPS fulfillment of user’s business decision The third party-content free charge Ads & import PV Media Platform User (netizen) CPT/CPM/CPC attracting of user’s attention Customer (enterprise) The future of business product around marketing Ads Make user impressed Business product Make user pay Deal Import PV Make interested user learn more The volleyball theory - integration of business and user product user customer smash content（meet demand） CPA Second pass Indexing（relate demand） CPC recommendation CPM First pass （inspire demand） A integrated solution for user and customer Design Logic - case of search platform query type product style purchase information identification / aut hentication of official website official website micro-purchase Link/function preposition sub-link/brand zone/nonstop for official activity user zhixin buniness zhixin/aladin e-business uniform/overall/n platform/middle on-repeat page/spider logo/industry chain/overall spider/partner website/ads store abundant/safe/ timely spider/partner website/ads store quick purchase goods store nonstop/deal link/import PV navigation accurate/timely Demand level Meet style need smash core meet want second pass addition relate desire first pass recommend inspire text link/aladin business zhixin cards/search ads correlation Relevance logic & goods store/ analysis/extract declare relevant data base similarity & Differences correlation data base/ads store extended read knowledge graph/search ranking list recommend purchase (cross/up sale) correlated recommendation guess u like/ others ‘ search brand landmark/ correlation ads user product design resource key points what relay on business product user product business product user product business product recommend/ads more recommend search ads text link/aladin ranking list Key action knowledge graph/aladin search ads text link/aladin functional description Thanks for your listening! wechat/QQ: 7224236 email: [email protected]