how platforms make money ？

How Platforms Make Money ？yuhai@2014.09

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Ecosphere - Octopus model

Business Needs - Pyramid model

Marketing Path - Grid model

Harmony of Users and Customers – Volleyball model

Four Theoretical Models

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Virtual service - connect user with userY2005 vs. Y2013: 0.18 vs. 9.9 (Billion $)

Advertiser - connect user with informationY2005 vs. Y2013: 0.04 vs. 5.3 (Billion $)

E-commerce - connect user with productY2005 vs. Y2013: 0.09 vs. 7.9 (Billion $)

The Main Business Pattern of Internet Platform - Connect

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Octopus, Ecosphere, not Ecological chain

User(who use your product), Customer(who pay you)、 partner(who help each other)

the Matthew effect

Ride bicycle

The drinker's heart is not in the cup

Real-time, continuity

… ...

The Characters of PlatformQuestion：what is a platform？ How to distinguish  between platform, product and tool?

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The Search Ecosphere - traditional circleThe upstream channel

Search engine

Downstream contentwebsite

advertiser

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The Search Ecosphere - new version with Octopus featureThe upstream channel

Search engine

Downstream contentMiddle page

website

Backflowadvertiser

Recommend search

New scenesusing search import

7Customer Needs Business Model Media ResourceDEAL

AGENCY

ADS Tier 1：first pass TV/news paper/radio video/portal SNS/UGC//websites

Tier 2：second pass Web navigation search/vertical search

Tier 3： sma sh dealbranding

branding+effecteffect

numbers

Consumption ability Demand Generation Media length

Demand fulfillment

The General Business Model - Pyramid

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The General Business Model - Pyramid

8Customer Needs Business Model Media ResourceDEAL

AGENCY

ADS Tier 1：first pass TV/news paper/radio video/portal SNS/UGC//websites

Tier 2：second pass Web navigation search/vertical search

Tier 3： sma sh dealbranding

branding+effecteffect

numbers

Consumption ability Demand Generation Media length

Information agencyMerchant deal

Demand fulfillment

Hard ads Platform agency

manufacturer deal

Soft ads

brandingbranding+effect

effect

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The Business Ecological Environment of Internet in China产业链

客户需求 商业产品 媒体资源

Deal platform

DSPImplantable ads

Search ads

Exchange

B2X platform

Display ads

Value-added service

DMPNavigation ads

Recommended ads

BannerVideo adsNewspaper adsTV adsTV shoppingSocial adsbrand implantation

Navigation &DisplayBrand zoneBrand landmarkTaobao affiliateGoogle AdsenseAmazon affiliate Affiliate ads

AmazonBaifendian

Baidu Phoenix NestGoogle AdwordsTaobao zhitongcheHAO123HAO360meilishuo

WangwangBaidu shangqiaoLixianbaoTongji

Tmallebay JDAmazon

VanclTaobao big seller

DoubleClick For AdvertiserAd exchangeData exchange

B2X manufacturer

Taobao mofangBaidu Sinan

Tier 1：first pass TV/news paper/radio video/portal SNS/UGC//websites

Tier 2：second pass Web navigation search/vertical search

Tier 3： sma sh deal

Customer Needs Business Model Media Resource

User Experience vs. Customer Needs

CPM vs. PV

Monopoly vs. Competition

Continuous vs. Discrete 0

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search adsvideo adssuperbowl adssocial ads

Four Dimensions affect revenue scale - case of ads

search

bbssocial network

we-media

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The tipping point of Marketing•TV/Radio（ short/expensive)•Video website•Newspaper/magazine•Outdoors/bus/metro

Evaluation of marketing effect•official website•online shops•offline stores•supermarket Marketing Path

Branding is rigid demandExtending and linkage are potential demand

Marketing Path – based on two marketing practice

Brand awarenessCatchBrandFavoriteConnectPurchase CloseBrand loyaltyContinue

Audience action 3RMarketing stage4C

Reach Resonate ReactPV UV Engageshare, like, poke, vote

Click Leadregister, inquiry ,call

Salepay

3R4C Grid model

Media PlatformThe third party-contentfree chargeowned-contentfree chargeAds & import PV

User (netizen) Customer(enterprise)

CPA/CPSfulfillment of user’s business decision

CPT/CPM/CPCattracting of user’s attention

CPTsale of product/service

The panorama of Media Platform - user-centered

Business product

Ads

Import PVDeal

Make user impressed

Make user pay Make interested user learn more

The future of business product around marketing

A integrated solution for user and customer

user customer Second pass

smash

First pass

Indexing （ relate demand）

content （meet demand）

 recommendation（ inspire demand）

CPCCPA

CPM

The volleyball theory - integration of business and user product

Design Logic - case of search platform query type product style purchase navigation information Demand level Meet style functional description Key action

nonstop/dealquick purchase goods store identification / authentication of official website official website accurate/timely knowledge graph/aladin need smash core meet

　 micro-purchase Link/function preposition sub-link/brand zone/nonstop for official activity user zhixin buniness zhixin/aladin

link/import PVuniform/overall/non-repeat e-business platform/middle page/spider logo/industry chain/overall spider/partner website/ads store abundant/safe/timely spider/partner website/ads store want second pass addition relate

text link/aladin search ads text link/aladin search ads text link/aladin business zhixin cards/search ads

recommend/adsRelevance logic & declare goods store/ relevant data base

correlation analysis/extract similarity & Differences correlation data base/ads store extended read knowledge graph/search ranking list desire first pass recommend inspiremore recommend recommend purchase(cross/up sale) ranking list correlated recommendation guess u like/others ‘ search brand landmark/ correlation adsuser product design resource key points what relay on

business product user product business product user product business product

Thanks for your listening!

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