337 Sina Crisis
Just as the major departments of Toutiao began to use all their traffic and resources to promote Toutiao, major Internet giants were once again shocked by Toutiao's actions.
[Users get cash when watching advertisements] This routine actually appeared as early as the PC era. After the mobile Internet began to explode, some people have specially developed this software APP.
But this kind of APP is just purely "seeing advertisements to get cash", there is no other content, it is purely advertising.
This business model cannot continue. The reason is very simple. The first is that there are really not many users who have the patience to keep watching advertisements. Is your brain watered?
Who would watch advertisements for one or two hours a day? Even if there is one, it is still the kind of person who watches them purely for money, but this kind of gameplay is too tiring, and not many people can stick to it.
The second reason is the stock problem. Even if the business model of this APP can be established, how to attract traffic becomes a huge problem. The cost of attracting traffic is so high that APP developers cannot make money back through advertising fees. This leads to a very small number of users of such APPs, and a small number of users, which actually greatly increases the cost of finding advertisers.
The high cost will lead to developers not giving too much money to users, which will create a situation of user uninstallation. Under the vicious cycle, such APPs do not even have the opportunity to invest in angel rounds.
Traditional news giants have a huge number of users and actively contact advertisers. In theory, they can conduct tests of such businesses, but the first point is that they can't imagine it, and the second point is that they cannot share the profits of advertising to users.
Internet giants who have not experienced the fierce money-burning war on the mobile Internet will not take the initiative to give money to users.
But Toutiao's trick is a real way to cut off the cause. The base of more than 100 million users promotes the business of actively watching advertising and obtaining cash dividends. Within a few days, tens of millions of users received cash. Although it only costs a few dollars, it still caused a significant communication effect.
When each of the tens of millions of people tells three or four people around him, the number of people who know about this business immediately reaches 30 million. If these 30 million people spread again, the data will become extremely huge. Especially for some elderly people who have just been given a gift from their children to only have mobile phones, they will immediately ask their children to download it for them when they hear that they have money to read the news.
In less than half a month, Toutiao's download volume soared again. This can be roughly counted from the download volume of some application download platforms. On the Apple APP, Toutiao has become the largest download software in China, dominating the list for a week and continues.
Although Toutiao's mobile terminal has long become the number one in market share, Tencent News, Sina, NetEase, etc., which are following it, still feel that they have a glimmer of hope. However, the ice bucket challenge that has just passed has caused Toutiao's traffic to rise sharply. Now, another move has been made, which immediately makes all players feel that the future is blank.
Yanjing City, Sina Company Headquarters:
Wang Zhidong rubbed his temples on both sides. During this period, he felt as if there was anger coming out of his head.
"Dongdongdongdongdong..." The sound of knocking on the door sounded.
"Come in." Wang Zhidong said after seeing the visitor.
Cao Guowei walked to the opposite side of Wang Zhidong, sat down and said, "Mr. Wang, this is a plan formulated by the Operations Department. Do you have a look?"
Wang Zhidong took the document, read it carefully, and said, "We want to lose 3 points for every video advertisement? Then the same is true for today's Toutiao?"
Cao Guowei shook his head and said, "I don't know much about the specific data of Toutiao, but judging from their subsidies and the data I obtained from their advertisers, the losses should be some, but not as big as ours.
This is because Toutiao has too many users and the average user time is long. These bases can share the cost per share. Toutiao's big data is more accurate and the efficiency of advertising is the best in the industry. Advertisers also agree that Toutiao's advertising value is higher, so they are willing to give more advertising fees."
Wang Zhidong frowned and pondered for a moment and said, "If we also launched a similar business, according to this data, the daily losses may be as high as tens of millions. Do you think it is worth it?"
Cao Guowei said: "Mr. Wang, from an operational perspective, we should not do this. Toutiao's users and user time have far exceeded ours. This time we have the advantage of first-mover players. Even if we keep up, can we attract more people?"
"I agree with your point of view." Wang Zhidong nodded and said, "But, now, Toutiao has seized a large number of users' time to watch the news, and even Weibo has been affected. In addition, Toutiao has been guiding major stars and government agencies to settle in Toutiao. If we do nothing, we are waiting for the market to be completely occupied by the other party."
Since the Ice Bucket Challenge, Toutiao has begun to distribute dividends to some shooters with huge video traffic, which has made many celebrities taste the benefits. Toutiao has also set up corresponding departments to encourage celebrities to comment, comments, etc. in Toutiao. In order to attract celebrities, Toutiao not only divides the advertising share for celebrities, but also actively compares among Toutiao advertisers based on the popularity of celebrities and fan characteristics, and then finds investors for celebrities to endorse advertising, or directly posts comments to promote products.
After this operation, it naturally has a great appeal to many celebrities. After all, celebrities don’t need to do anything. Just post comments every two or three days. Today’s Toutiao will also actively push their Toutiao accounts to a large number of new users.
This model is actually very similar to the Weibo of the past. Sina Weibo was able to surpass Teng Xun's Weibo because it was actually monopolizing the resources of celebrities and then sharing the money with them.
Now, Toutiao has launched similar services, and even because of its huge traffic and powerful recommendations for big data, this revenue is much higher than Weibo.
This also made Sina feel a huge crisis. Wang Zhidong never thought that he had just defeated Teng Xun's Weibo and would be hit by the cross-border impact of Toutiao.
Cao Guowei said: "Mr. Wang, Toutiao's power has become. Toutiao and Quxin have just received more than one billion US dollars in financing, and they are currently in an advantageous position. It is not cost-effective to fight them head-on."
"Then what do you think you should do?" Wang Zhidong asked.
Cao Guowei said: "The rise of Toutiao actually threatens almost all Internet giants, but the one that threatens the most is Teng Xun. The existence of Quxin is the sword of Damocles hanging on Teng Xun's head.
The relationship between Toutiao and Quxin has always attracted each other, and I think Teng Xun will definitely react.
Moreover, this time, Toutiao obviously intends to cultivate its own payment users, which will definitely make Alibaba feel very threatening."
"Ali thinks it's useless to have a threat. What can they do?" Wang Zhidong was very disdainful and then said: "Let's do this, develop this function first, at least when we really need it, we must have this function.
Chapter completed!