Electric Business Enterprises Are Coming To The Market &Nbsp, Increasing The Competition Of Network Resources.

The new round of the tide of listing business is the first to bear the brunt.

Following the submission of TSE's application to the SEC (US Securities and Exchange Commission), the domestic brand Electronic Commerce Dangdang was successfully listed on the NYSE in December 8, 2010 and became the second largest Chinese e-commerce website after Mcglaughlin successfully landed on NASDAQ.

According to Ai Rui net's "2009-2010 China online shopping industry development report" data, the total amount of online shopping reached 250 billion yuan in 2009. But overall, online shopping accounts for only 1.98% of the total retail sales of consumer goods. Online shopping group is gradually expanding along with the growth of Internet users' base, but the penetration of Internet users in China is still lower than that of developed countries, and there is a huge gap between online shopping penetration and cities. market The explosive growth in China still has great potential.

According to CNNIC, 2009 China Online shopping The market research report shows that female Internet users have become active users of online shopping, and the share of online shopping users has exceeded male proportion, and has gradually increased. Most of the users are 18~30 years old, with a monthly income of 1000~3000 yuan, and mainly white collar and students.

Huge sums of money are pouring into the media.

Last year, Mcglaughlin CEO Gu Bei Chun said in an interview with reporters, "in 2010, Mcglaughlin spent $100 million on advertising on the Internet, and 2011 advertising will have a large scale growth." At present, many B2C enterprises lose money in advertising (i.e., advertising expenditure is greater than the profits they bring). Gu puts forward his understanding of advertising effectiveness. "After you put in the advertisement, you lose the first week. This customer will spend two or three times. We count the customer's lifetime value. This requires a precise estimate of how long it will take to break even, and then make profits. We are not seeking to say that we can make profits right away. "

The Internet service industry, especially the e-commerce industry, has been benefited from the scale of online advertising and the mode of rapid transformation and sales. In recent years, some e-commerce companies seeking to list and create brands have increased the scale of online advertising. According to AI iAdTracker data, the cost of China's Internet service industry has increased from fifth in 2007 to the top two in 2010. It is estimated that in 2010 the cost will continue to grow by more than 50%, higher than the average growth rate of net media. On the whole, the network service customers prefer to launch on the portal, for example, the core of the core of all customer service, selling bags, Mcglaughlin, Jingdong mall, and dream bazaar focuses on the Tencent, Sina, Sohu network and other portals, and the amount of money invested is tens of millions.

Fan Ke chairman Chen said in micro-blog, 2011 will be the beginning of B2C industry's spree. Amazon has higher requirements for Amazon's performance in the Chinese market, while Dangdang, Mcglaughlin and other companies have access to capital market while obtaining capital, they also face enormous pressure from investors to expand market share. This also means that, with the help of the many B2C business enterprises that are listed on the market to get financing or look forward to listing, the proportion of Internet advertising will be increased collectively in 2011 to accelerate competition. {page_break}

Although e-commerce giants have said that the second half of the year to increase the number of online advertising, but not all advertising media are happy, especially the portals, advertising page layout, core resources are limited, if the number of ads to increase the number of rounds, will inevitably affect the advertising effect and the experience of the network station users, so the cooperation mode of e-commerce enterprises and websites should not be limited to the network hard and broad aspects.

Brand building and diversification of customer drainage

E-commerce enterprises are keen on large-scale network advertising bombing, mostly based on their "short, flat and fast" operation characteristics, so as to achieve the goal of quick sales of funds in the short term. Take the dream bazaar set up in 2007 as an example, started in the product catalog, and began to try Internet marketing at the end of 2008. In the first years of Internet marketing, in 2009, Meng bausa sales exceeded 100 million, and it was the only sales enterprise in the field of women's wear B2C. In May last year, Meng bazaar focused its efforts on the popular website Tencent. By the end of 2010, more than 80% of the dream bazaar sales came from website shopping, and it is estimated that sales of dream bazaar will reach 300 million this year.

With the awakening of brand awareness of e-commerce enterprises, the purpose of advertising is no longer so simple. "Dream bazaar in 2008 advertising mainly DM, 2009, in the major portals, dream bazaar's advertising is obvious. In 2010, we continued to increase the publicity and publicity efforts of the "dream bazaar" brand on the Internet, and the amount of advertising will increase by 2-3 times compared to the same period last year. At present, the two purchase rate of dream bazaar has reached more than 70%. "Repeat customers" will not weaken their desire to buy because of the dream bazaar advertisement, so there will be no "advertising dependent effect". Meng bausa CEO Li Shudong said he thought the online marketing and distribution of the Internet service industry has become a major trend in the industry. Meng bausa chooses Tencent platform. On the one hand, it attaches importance to the extensive coverage of the target audience by Tencent. On the other hand, the value of Tencent media is particularly important for the construction of the dream bazaar brand.

Industry veteran told reporters that, as a whole, domestic B2C network service customers are mainly CPD (76%), supplemented by CPC (23%). Meng bausa CEO Li Shudong said, "our thinking on advertising is different from the" CPS "mode based on the sales distribution. The main purpose of the advertisement is to expand the brand awareness and let more Internet users know and understand the dream bazaar. Therefore, the dream bazaar's main media are the portals with larger flow of people.

Liu Yao, assistant general manager of Tencent network media product department, told reporters: "from a marketing point of view, for Tencent customers such as fans and dream bazaar, Tencent has suggested that they should actively increase the number of web portals while actively promoting multi platform linkage marketing, such as cooperation with QQ members, QQ shows, Tencent videos and big events, so as to enhance interaction between brands and users and achieve marketing objectives in complex network relationships and weak links. After all, the relationship has not changed, and the relationship between brands and users has not changed. It is only the way we maintain and utilize relationships." Internet advertising will continue to be the focus of e-commerce investment in the short term, but diversified daily interaction and combination will open up a window to fight for increasingly fierce Internet advertising.