What is the development trend of online advertising?

I. Overview of Internet advertising industry

Advertising refers to the way that commodity operators or service providers directly or indirectly introduce the goods or services they sell at the expense of a certain medium, which is one of the easiest ways to realize Internet products. As big as BAT and the four portals, as small as individual webmasters and taobao guest, they all need to rely on advertising to get income.

The value of internet advertising lies in grasping the audience that advertisers really want to reach with the lowest cost, the highest efficiency and the largest scope. With the birth of the Internet and the emergence of big data, the public's time in traditional media has gradually shifted to new media on the Internet, and has developed from PC Internet to mobile Internet. Internet advertising has become traceable and efficient.

The charging modes of Internet advertising industry mainly include display charging (CPM), click charging (CPC), on-time charging (CPT), effect charging (CPA) and sales charging (CPS).

Billing mode of internet advertising industry

Source: compiled by Huajing Industrial Research Institute.

Different advertising forms often adopt different charging modes, and the share change of various forms of Internet advertising will also be reflected in the market share of charging methods. Due to the rapid growth of search advertisements, the market share of CPC (Pay-per-click) charging method has also expanded year by year, while brand graphic advertisements have shown a downward trend in recent years, and the share of CPT (Pay-per-click) charging method mainly used by them has gradually shrunk. In addition, the development of vertical search advertising and display advertising led to the growth of CPM (cost per thousand people) and CPA (effect-based billing) respectively.

Participants believe that the industrial chain of Internet advertising industry can be divided into advertisers, Internet advertising marketing service providers, media channels and Internet users, among which advertisers are the source of the development of Internet advertising industry, Internet advertising marketing service providers are the core drivers of the market, media channels are the carriers and audience contact points of Internet advertising, and Internet users are the ultimate audience of Internet advertising marketing.

Internet advertising marketing service providers are the bridge and link between advertisers and media channels. On the one hand, it helps advertisers to conduct market research and forecast, determine advertising objectives, plan and create advertisements according to the scheme, and complete the design and production of advertising works. On the other hand, we should integrate diversified channels and ways of advertising purchase, deliver and manage advertisements through a unified platform, and optimize the allocation of multi-channel media resources. Advertisers' advertising needs can accurately identify the target audience through the platform of internet advertising marketing service providers, and put them into the media browsed by the target audience at the right time, and finally achieve the purpose of accurate advertising.

Source: compiled by Huajing Industrial Research Institute.

Second, the Internet industry development scale analysis

As the birthplace of Internet advertising, the United States is the country with the earliest development of Internet advertising, and has now become the largest Internet advertising market in the world. According to the classification of American advertising media, Internet advertising is the most powerful advertising media, and its market scale has been growing, and it has gradually surpassed the traditional advertising media in the United States. After years of development, the Internet advertising market in the United States is in a mature stage. Although its market scale keeps growing, the growth rate gradually tends to be flat.

The application of Internet in China has penetrated into all aspects of social and economic life and covered mainstream consumers. By June of 20 18, the number of netizens in China had reached 802 million. In the first half of 20 18, there were 29.68 million new netizens, an increase of 3.8% compared with 20 17, and the Internet penetration rate was 57.7%. The Internet has gradually penetrated into enterprise management and personal work and life, and the market demand for Internet advertising will continue to expand. The number of Internet users is huge and growing continuously, and the Internet market has great advertising value.

Source: public information collation.

With the gradual improvement of the Internet ecological environment, the improvement of the accuracy of Internet advertising and the prominence of the advantages of high quality media, the recognition of Internet advertising by advertisers has gradually increased, and the Internet advertising industry has risen rapidly. In 20 17, the internet advertising market in China reached 448.89 billion yuan, an increase of 4 1.2% compared with 20 16.

Source: public information collation.

Internet advertising mainly includes display advertising, search engine advertising, word chain advertising, classified advertising and other forms of advertising, among which display advertising and search engine advertising are the two most important forms of advertising, with a total market share of nearly 90%. Display advertisements refer to advertisements directly displayed through graphics and videos, including brand graphic advertisements, rich media advertisements and video patch advertisements. Search advertisements include search keyword advertisements and vertical search advertisements. Search keyword advertisements refer to advertisements that Internet users match based on keywords through search engines, and vertical search advertisements refer to advertisements that Internet users display after searching with specialized search engines in vertical fields, such as Taobao, JD.COM and Qunar.

In 20 17, the search keyword advertising market accounted for 30.50%, making it the largest Internet advertising form. Vertical search advertising and display advertising market accounted for 27.4%, and brand graphic advertising market accounted for 19.80%, with an obvious downward trend. With the rapid development of mobile Internet, all kinds of advertisements around mobile Internet and emerging social media are expected to develop rapidly and their market share will increase rapidly.

Source: public information collation.

Third, the development trend of the Internet industry in China

1, the importance of Internet advertising marketing technology has been continuously improved, and the marketing efficiency has been improved.

Technology has always been one of the core competitive elements in the field of Internet advertising marketing. Internet advertising industry has made great progress in technology since its development, especially the application of effect monitoring and precision marketing technology, which has largely solved the problems of unclear audience and unclear effect in traditional marketing, and the marketing efficiency has been greatly improved compared with traditional methods. With the further development of information technology, basic technologies such as large-scale distributed computing and massive data mining have gradually matured and been applied. Internet advertising marketing will be able to gain a deeper insight into consumers' needs, formulate an efficient marketing plan, and meet the marketing needs of advertisers in a targeted manner.

Internet advertising marketing service providers provide an efficient platform for advertisers to expand their business. With the help of precision marketing technology, they can quickly collect and transmit all effective information, effectively shorten the information exchange time between buyers and sellers, break through geographical restrictions, and provide quality services to advertisers and audiences simply and quickly. Internet advertising marketing service providers reduce marketing costs, speed up marketing and greatly improve marketing efficiency by compressing marketing processes.

2. Industry concentration will be further enhanced.

Different from the market competition pattern in the traditional marketing field, the policy control of the Internet advertising industry is relatively loose, the market competition in the Internet advertising marketing field is relatively sufficient, and the market entry threshold is relatively low. At the same time, due to the huge variety and quantity of marketing service providers in the field of Internet advertising marketing, the living space of large and small marketing service providers is relatively broad, resulting in a relatively large number of enterprises in the Internet advertising industry and a relatively low industry concentration.

From the perspective of industry development practice, Internet precision marketing is the future development trend of Internet advertising industry. In the process of precision marketing, the requirements for accurate positioning of consumers, massive data mining technology and insight into consumer data will promote the survival of the fittest in the whole industry; Internet media provide preferential purchase prices to Internet advertising marketing service providers, and determine the preferential rebate ratio according to the purchase amount. Large Internet advertising marketing service providers have the scale advantage of purchasing volume and low purchasing cost. With the rapid growth of the Internet advertising market, many listed companies have quickly entered the Internet advertising industry through mergers and acquisitions by virtue of their financial strength and capital market financing platform. To sum up, the concentration of the Internet advertising industry will continue to increase with the development of the industry.

3. The process of programmatic buying has been accelerated, and the DSP market has been intelligently upgraded.

Programmatic buying refers to the whole process in which advertisers combine DSP platform to collect data in real time, use special algorithms to measure multiple factors and give visual results, screen out specific audiences and media channels with the highest matching degree and high cost performance, and place their own orders to execute advertising.

With the rapid development of programmatic buying in China, all parties in the industrial chain, from advertisers, advertising agents, DSP platforms, advertising trading platforms to the media, have done more in-depth practice in programmatic buying, which has promoted the development of Internet advertising programmatic buying from their own perspectives. On the one hand, more and more advertisers are actively trying to achieve substantial breakthroughs in enhancing brand awareness, maintaining market exposure, website drainage, increasing registration and releasing new products through programmatic buying, especially in the industries of automobiles, food and beverage, personal care products and so on. On the other hand, DSP providers are also accelerating their own technical level to improve the ability of media resource docking and audience orientation, and quickly accumulate rich experience in programmatic advertising matching transactions. In a word, the Internet advertising industry is undergoing an intelligent upgrading process, and will provide quality services to all participants in the industrial chain in a more efficient and convenient way in the future.