Selling Ads To Become A New Way To Get Rich

Electronics Business affairs The life and death of an enterprise depends on the cost of attracting customers, that is, the money they spend to earn a sales income.

The biggest difference between an electronic business and a physical store is that once someone enters a physical store, they are more likely to buy something. After all, the customer walked into the shop voluntarily and was willingly taken captive.

What about the electricity supplier? A more affordable, better and more brilliant choice is only one key away. E-commerce sites invest a lot of money and energy to attract visitors, but in the end they can only look at them without any purchase and switch to another label.

According to Jonathan Deckard, chief executive of digital advertising company HookLogic, the online conversion rate can only reach a disappointing 3% at best. He said: "most people who visit these websites do not buy anything, they just keep studying between sites."

But this does not mean that retailers are struggling to win. Visitor There can be no monetization. Nowadays, more and more electricity providers are trying to use the same way as online media to achieve the monetization of their audience, that is, advertising.

Three years ago, selling ads on e-commerce sites was only a cautious experiment. Retailers worry that these advertisements will lead visitors to other places instead of turning them into their own customers.

Nowadays, Opdyke said that most of the advanced e-commerce operators have established a media sales and audience monetization team from WAL-MART (Wal-Mart), Taghit (Target) to Sears (Sears), to Sports Authority and Toys R Us. According to a recent study by OC&C OC&C (OC&C Strategy), 80% of US retailers are using their rear projection ads, featured products and sponsors links to publicize products on their respective sites.

An effective way is: retailers sell their advertising outlets to their own online stores. This approach is very similar to the prominent position that the major brands buy for their products in the supermarket shelves. HookLogic, a New York based company, has raised $23 million 500 thousand in wind investment for its advertising products, displaying its sponsored search results in retail outlets.

The company is currently working with all the retailers to sell advertising to customers like Reckitt Benckiser. For example, when visitors search for cleaner products on WAL-MART's website (Walmart.com), the first product to be seen is Lysol, a product of Lee Jill. The website will suggest that this is a sponsored search result -- very similar to Google (Google) paid search advertising service.

Meanwhile, Bazaarvoice, a business software company, has entered the industry, which spent $43 million in 2012. Buy The e-commerce network advertising company Longboard Media. Triad Retail Media, which is working with WAL-MART, eBay, Dollar General and CVS chain drugstores, claims that by helping retailers integrate brand advertising into their websites, it has become the world's leading retailer monetization institution.

OwnerIQ is selling a brand advertisement to a retailer's visitor after leaving the website. In this way, "even if I don't buy anything, Taghit department stores also have money to earn," said Jay Haberg, CEO of OwnerIQ. In this way, after consumers leave an e-commerce website, brands can make them feel the ubiquitous display advertising impact on the Internet. OwnerIQ currently has more than 300 data partners and plans to achieve 70% revenue growth this year. The company has recently disclosed that it has raised an additional $6 million from existing investors, thereby raising its total capital to $39 million. The money is part of the company's latest round of $5 million venture capital raising plan announced earlier this year. Haberg said the company will use existing capital to enhance its technological and talent strength.

The monetization of visitors is an incremental revenue for the electricity supplier: a retailer with a sales volume of 100 million dollars may earn a profit of 10 million dollars. They have begun to invest in attracting visitors. So if they sell media ads worth 10 million dollars, they will be able to earn 10 million dollars in profits. Aupu Deckard disclosed that the annual revenue of HookLogic customers is 100 thousand (small business) to tens of millions of dollars (big business). Now, online visitors who do not want to buy will no longer make the electricity providers unable to do anything. No matter whether they buy or not, big and small business people have come up with a way to make money on them.