After entering 2021, buying volume practitioners can be said to be very uncomfortable. On the one hand, advertising has peaked, and it is difficult to break through the scale of advertising and single user value. Many small and medium-sized companies have fallen on this threshold. On the other hand, Apple’s iOS 14.5 update is even more bad news. Now developers need to pop up the user’s IDFA and obtain the user’s consent. This means that the data is not directly available and the purchase amount is difficult to be accurate, which is equivalent to giving the entire market a head.
Some people say that the “buy volume” market seems to be surrounded by many parties.
At this time, we discovered that a company that does game advertising in Guangzhou has bucked the trend and demand has surged. Almost all advertising platforms and many major game manufacturers have chosen to cooperate with them. This company is Miaosi Interactive. The reason is that they have found a new solution in the buying market-interactive advertising.
Is the trend of interactive advertising really coming? Facing this market, most people are dubious, but Miaosi Interactive’s CMO Shi Yunan told me that compared with traditional video ads, the conversion rate of interactive ads has increased by tens to twice, or even twice, if If you look at ROI, there will be an increase of about 79%. Interactive advertising seems to be a new incremental possibility in the market now.
It is this kind of data that gives the entrants a lot of confidence. At the same time, Miaosi has stepped on the pits in the interactive advertising market in the past two years, and even the production cost and efficiency that everyone is most worried about has now made great breakthroughs with their technical solutions.
Why have all major advertising platforms started to promote interactive advertising? Why do some key products begin to use interactive advertising as an important delivery method? Can it break the current buying dilemma? We chatted with Miaosi Interactive CMO Shi Yunan.
Q1. What is the current stage of the domestic interactive advertising market?
I have always believed that interactive advertising is a process that is slow first and then fast.
For example, if you search for keywords such as playable ads and interactive ads on the Internet, you will find that most of the research will appear in 2020. In 2019, Facebook started to do it, Google started to do it, and traffic bottlenecks began to manifest. Many people believe that by 2020, the interactive advertising market will explode. But looking back, everyone was too shallow at that time, and the overall market willingness to infrastructure is not yet mature, so this expected outbreak did not come. The biggest manifestation is your domestic traffic in 19 or 20 years. There are almost no options for interactive advertising on the platform. This is the slow part.
But today, from the perspective of our customers, interactive advertising is one of the key projects of major platforms this year. This year everyone found that platforms such as Tencent, Toutiao, Baidu, and Kuaishou have begun to support and promote interactive advertising. So we think it is a slow first and then fast process. The start is a bit slower than I expected, but the subsequent growth rate exceeds everyone’s expectations. For example, Facebook expects the interactive advertising market to have a compound annual growth rate of about 100%, and the actual growth rate is about 100%. There are 300%. I believe that major game manufacturers can also find that this year, direct customer teams from advertising platforms are constantly coming to you to try interactive advertising, and the traffic support of each platform is also increasing.
Q2. What prompted you to choose the interactive advertising track?
More are the attributes of the team. Our three partners, including myself, are all from commercialization. We are very concerned about how to balance the relationship between users, vendors, and platforms, especially in a period when traffic bottlenecks are becoming more and more obvious.
We believe that every technological era, whether it is the content of consumption or the development of advertising, will have its own adaptive carrier. When the new technological era begins, its carrier form will change. This kind of new changes will be relatively sensitive to those who do commercialization.
In our opinion, the current advertising creative form has reached an extremely mature stage. The direct point is that the conversion capacity has begun to have an obvious bottleneck, but the growth needs of products and companies, that is, the demand for acquiring users, are still increasing. In IDC’s survey, users’ neglect of video ads has reached 82%. All angles have proved that everyone needs a new form of display to give more room for placement and creativity.
I understand that advertising itself is also a kind of content. From the old text to pictures to videos, we are also thinking about the next possible content format. In essence, people are eager to have feedback on their behavior in everything they come into contact with. In the past, the form of advertising was more unilateral, but whether this two-way feedback can be opened up, and how to get through it, it is likely to be We consider the focus of the new bearing form.
The nature of eager for interactive feedback, commercial opportunities, and balancing the relationship between users and advertisements are our starting point for choosing interactive advertising. We have done some experiments overseas and found that the effect is very good, so we decided to explore this path come out.
Q3. When did you start entering interactive advertising?
In 2017, we are focusing on interactive advertising. We officially launched this interactive advertising production platform at the end of 2018, and most of the time was spent improving technology and polishing products.
Today, all domestic advertising platforms and advertisers with the intention of investing in interactive advertising are basically our partners.
Q4. What kind of role do you play in the entire interactive advertising industry chain?
We are currently focusing on the production part of interactive advertising. The first sign of the maturity of any content format must be the maturity of production tools and production systems.
In the past, interactive advertising has always had a problem with the efficiency and cost of production. For example, when everyone first started to do interactive advertising in 19, the price of an overseas interactive customized material was 26,000 US dollars. Until now, the cost of customizing interactive advertising in China has ranged from several thousand to ten thousand. Not to mention the problems of production efficiency and channel adaptability, these are difficult to solve in the past in the form of “hand workshop”. The core of our product is solving this problem. If a design team now uses our platform, its production efficiency is ten times that of the original manual customization, and the cost is only a fraction of the original. At the same time, we have almost solved it. All compatibility issues, this is something we are very proud of.
Q5. You just said that the entire market is “slow first and then fast”. What does “fast” mean to you?
The matter of “fast” depends on everyone’s identity.
From the perspective of the traffic platform, I have talked with many partners of the traffic platform before. The bottleneck of traffic and the breakthrough of the value of traffic conversion under the bottleneck are the issues that everyone is most concerned about. Interactive advertising fits this proposition very well. From the launch of interactive advertising by Toutiao in 2020 to the advancement of almost every mainstream traffic platform, we can see that everyone recognizes the incremental ability of interactive advertising.
From the perspective of head game manufacturers, the acceleration of the traffic platform is a very good growth breakthrough opportunity for them. In the promotion process of many head products this year, the placement of interactive advertising is an important part of this. You can see more and more obvious trends between the second and third quarters. As far as we are concerned, there are basically 4 to 5 manufacturers every week to place orders for interactive advertising materials for their key products or invite us to conduct platform demonstrations or training.
On the contrary, for small and medium-sized developers, it is actually not that fast. I understand that this part of the developers will be relatively stable and will only follow up by observing the emergence of reproducible successful cases in the market. The current platform support and promotion are aimed at leading manufacturers, and this process is constantly accelerating. .
Q6. Why does it become “faster”?
I understand that this issue can be considered from several aspects.
First of all, we still have to talk about the problem of traffic bottlenecks. Commercialization is always the art of the platform, manufacturers, and users trying to find a win-win balance. Any major loss will lead to failure. Under the traffic bottleneck, looking for a business model with higher conversions for manufacturers, less interruption to users, and greater revenue to the platform determines that interactive advertising, which is inherently more user-friendly and more efficient in conversion, will be favored by everyone. From the current data, we can see that well-made interactive ads can have a conversion increase of tens to several times compared with video ads. The more important thing is that interactive advertising invites users to experience the core content and value of the product, which has a good role in promoting the long-term value of users. For example, there are many successful interactive advertising products whose user life cycle value is higher than traditional ones. The delivery method is much higher.
Secondly, now is the stage where games continue to be refined. More refined games require more creative and exquisite promotion methods. The extensibility of interactive advertising determines that it is a better choice.
Finally, no matter from the perspective of foreign or domestic hardware equipment manufacturers, the protection of user privacy is an irreversible trend. For example, Apple’s recent ATT. Although everyone still has strategies to deal with it, this process is irreversible. Future advertising is likely to face the problem of increasingly blurred user groups. In this case, one of the ways to deal with it It is to improve the comprehensive crowd conversion ability of advertising materials, and this is the natural advantage of interactive advertising.
Q7. Who are your main customers now?
There are two types.
The first is that we are cooperating with advertising platforms. Some advertising platforms will adopt our technical capabilities or directly use our platform as their tool for the production of materials.
The second is that we are currently cooperating with leading domestic manufacturers. On the one hand, we provide them with creative production services for key products. On the other hand, these partners use our platform to provide interactive advertising production capabilities for their delivery teams. Our data Ability can also provide them with better delivery support.
Q8. According to the customers you have contacted, what is the current level of participation in the industry?
As far as we know, about 25% of developers currently place interactive ads on a regular basis, and this proportion is still rising.
In terms of advertising platforms, almost all major companies have already supported interactive advertising. Interactive advertising is also one of their key goals this year. I believe many people have been targeted by interactive advertising on major advertising platforms.
Q9. So everyone thinks interactive advertising is better than video advertising?
Video advertising is currently very mature. Mature means that its business model, feasibility verification and overall execution logic are certain, and a stable effect can be obtained when it is launched. However, too mature also means fierce competition, regardless of return or creation cost. Both will bring a decline in revenue.
As I said before, some of our partners will think that interactive advertising is not a substitute or upgrade of video advertising. In fact, we believe that when both platforms and developers encounter traffic bottlenecks, interactive advertising is this A rare incremental window in the market. From the data point of view, excellent interactive advertising has a huge increase in data compared with video advertising, but this does not mean that interactive advertising can quickly replace video advertising. There is still a lot of room for improvement in traffic and production, including delivery strategies.
I think at present, from the developer’s point of view, interactive advertising should be regarded as an incremental supplement, rather than an absolute replacement.
Q10. Except for some head products, the interactive behaviors of interactive advertisements I currently see in the market are very “simple” or “shallow”
“Simple” to a certain extent represents high efficiency. At the beginning of the market, everyone will definitely find the most efficient way to enter, but as the market competition accelerates, it is necessary to find room for improvement.
Interactive advertising now has a very large room for improvement. Mature interactive advertising will have multiple layers of interaction logic and levels, and there is a lot of new space, because the more detailed the data dimensions, the more levels, and the more optimization points.
And the interaction is very extensible. A ssr 10 consecutive draw can be made into interaction, a complex multi-branch scene can be made into interaction, and a demo that simulates gameplay can also be used for interaction. Manufacturers of different levels can find themselves in the middle. The fit point.
Video advertising was rudimentary when it first started. It has a process of gradual increase in maturity. I also fully understand that many people choose the most straightforward and simple method at this stage.
Q11. There are also many fake interactive advertisements made with videos in the market, and the revenue is also very good.
This question is very interesting. We can see a lot of fake interactive videos in various channels. For me, this shows that everyone recognizes the effect of interactive guidance and user psychological control, or that everyone recognizes the nature of interactive advertising. The revenue is only due to the previous platform’s launch support or the production threshold of real interaction. The production threshold of real interaction did not do so. Some of the products that you often see that place interactive advertisements, you will find that it is all launched in foreign countries or channels that support real interaction. Really interactive.
Fake interaction is just the lowest threshold expression of “shallow” or “simple” that you said before. Let me just say that now we all know that the effect of fake interaction is so good that so many manufacturers use it as the main form of material delivery. I think the space for imagination of more mature real interactive effects will be bigger.
Q12. But the cost of fake interaction is lower
This is what we are doing now and what we are most proud of.
Because fake interaction is actually a video advertisement, everyone knows that it costs hundreds of dollars to make a video advertisement now. The interactive advertisement is as mentioned before, and the foundry on the market now ranges from a few thousand yuan to 10,000 yuan. And our platform reduces the cost to a lower level than this.
For example, a few days ago, I saw that a partner used our platform to produce more than 50 interactive materials in less than a month. Our platform costs more than 10,000 yuan a month. You just need to figure out the cost of this material. I know, this kind of production efficiency and production quality are unmatched by other methods.
When the cost is flat, the quality is better, and the interactive attributes are reflected, real interaction will become a better choice, because as just said, the core of fake interaction is to imitate this matter.
Q13. How do you understand that the quality is better?
Many times, everyone has overlooked a core issue, that is, compatibility, to adapt to the standard of the platform. Because interactive advertising is ultimately presented to users to test the effect.
The interactive advertising adaptation standards of each traffic platform are different, such as Tencent, Toutiao, and Baidu. They have a large number of sub-channels and a large number of products. If the compatibility is not good, the advertising experience will be poor and the loading will not be possible. , Or not recognized by the system, etc. various small problems.
This kind of problem allows us to experience a change in thinking. At the beginning, we thought that this was a matter of the platform, which should be resolved by the platform. But then I think that in the early stage of a market, any promotion is very helpful. We spent a lot of time to solve this problem. At present, our cooperation with various platforms has ensured that our compatibility effect is the best. , Can show users the best side of interactive advertising.
Q13. Some people think that interactive advertising seems to be only suitable for casual games
This is easy to understand.
Everyone thinks that the first response of interactive advertising is to eliminate the intermediate process and present the specific selling points of the core content of the game to users. Heavy game products have more levels, more content, and a part of abstraction, making it more difficult to produce. In contrast, casual games can even directly restore the gameplay, so they are more in line with everyone’s first impression of interactive advertising.
But if you stand in 21 years today, you will find that the absolute majority of interactive advertising budgets are heavy products. One is that all the heavyweight products are entering the market, and the other is that everyone is beginning to discover more product integration points. This is also a sign of the gradual maturity of the market.
In fact, everyone knows that interactive advertising and games have a very good combination, and interactive advertising is not only a simulation gameplay, in essence, it is to induce users to be curious and explore the content, which requires interactive advertising must take the integration point seriously, and treat your own products. The user needs to have a precise grasp of the user’s needs, and then invite users to experience the operation content, instead of forcing users to operate the content, our current focus has been extended to how to find a combination of interactive advertising in more industries.
Q14. You have been doing this for so long in the past. If there are other teams that want to enter the interactive advertising field, do you think it is appropriate?
Now is a very suitable time, the slow period of time has passed, and the next outbreak will usher in.
Like many new things, interactive advertising is top-down, from platforms to key customers to popularization of small and medium-sized enterprises. Now that the predecessors have explored the way, everyone is more acceptable to this matter.
Q15. Are you worried that latecomers will surpass you?
Not worrying is definitely fake. Everyone is worried about this kind of thing in any product, but I am also very much looking forward to it to a certain extent.
At the beginning of the 20th, I went to talk about interactive advertising with others, and I had to explain to everyone what interactive advertising is, what are the advantages and disadvantages of interactive advertising, etc. And now I talk about interactive advertising with others, and everyone is talking more about how to do it and what is the combination with my product. This is an obvious sign of market maturity.
I hope to see more competition, which means that a market is becoming mature and perfect. Judging from the actual situation this year, such competition will come soon.
Q16. What kind of goal will you set for the team this year?
Our main goal of self-improvement is customer satisfaction. We hope that we can use our accumulation to serve the top customers who are currently on the market with interactive advertising. This is also our most important job now.
At the same time, I also hope that the competitive advantage of our products can be maintained or expanded.
Source: Something about mobile games