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Why does Douyin have a commercial label?

For commercial products, monetization is an unavoidable issue. This article will summarize Douyin’s current commercialization behavior. Above, boldly speculate on Douyin’s possible future commercialization path. Monetization methods: First, we summarize Douyin’s current monetization methods that are visible to the naked eye. Feed advertising is Toutiao’s strength. In addition to algorithmically matching users, Douyin’s feed advertising also has some interesting attempts, which I would like to briefly talk about. (1) Determine the advertising through A/Btest...

For commercial products, monetization is an unavoidable issue. This article will boldly summarize Douyin’s existing commercialization activities based on Guess Douyin’s possible future commercialization path.

Monetization methods

First of all, we will summarize Douyin’s current monetization methods that are visible to the naked eye.

Feed advertising

Advertising is Toutiao’s strength. In addition to algorithmically matching the feed ads of Douyin, there are also some interesting quizzes that I would like to briefly talk about. .

(1) Confirm the length of the advertising button through A/Btest. I wonder if you have noticed that the length of the conversion button in Douyin ads has changed several times - from the initial size to the column length, and finally to the current style. What should be included on the back is A/, which is the same as the content selection mechanism. The Btest idea is to find the button length with the highest click rate through testing.

(2) Arouse users’ curiosity through randomly “changing” buttons. They are also advertising buttons. When you first enter the advertisement, each button will be a transparent color. After a few seconds, it will change to a different color. For example, the button in the first advertisement will turn blue, and the button in the second advertisement will It turns to orange, taking advantage of users' curiosity about the color of the button, while providing interest to the product and extending the viewing time of the advertisement.

E-commerce diversion

Merchants can directly divert users to their own product sales pages through short videos.

Although Toutiao launched its own e-commerce channel "Value Point" some time ago, most of the visible e-commerce traffic is still directed to Tmall and Taobao. On the one hand, it may be because the user portraits of Douyin are quite different from the value points. On the other hand, it may be because the value points are still in the testing stage and are not suitable for large-scale traffic diversion.

Customized brand advertising

Use challenging activities and materials to help big brands customize advertising and profit from it, such as #challengedcustomized advertising-oppochallenge "It turns out you are Jiang Zi" ”, customized advertising for stickers – Pizza Hut stickers and more.

Live broadcast dividends

It is assumed that it is just a general function follow-up, using existing users whose characteristics and intentions are similar to those of live broadcast users for direct monetization. There is not much difference from other live broadcast channels, so I won’t go into details.

DOU+Boost

DUO+Boost is an advertising method recently launched by Douyin. It can be invested in a certain video and can be operated on the mobile terminal.

Investment methods include:

Basically targeted investment, investing in groups of restricted gender, age, and region;

Specify accounts with similar fans, Invest in fans of designated accounts;

Invest in nearby business districts, and invest in areas within a specified diameter.

The above is Douyin’s current commercialization method visible to the naked eye. Next, let’s guess where Douyin will monetize in the future.

Monetization efforts

I personally believe that Douyin’s future monetization efforts will still be “advertising” and “diversion.”

Advertising

It is reported that Douyin’s advertising revenue may exceed 10 billion in the next year [1]. It is difficult to imagine that such a big piece of cake cannot form Douyin’s future focus. point.

In addition, the advertising skills developed by Toutiao are also a good support for Douyin advertising. For example, Douyin continues to try ideas and provides "intelligent investment" on the basis of Toutiao investment. Under this investment method, Douyin will first use part of the investment funds to conduct small-scale experiments, find the groups of people with the best investment effect, and then invest on a large scale to achieve the best promotion effect (Note: please visit DOU+ Boost the first option, DOU+ call method: click the "Forward" button on any video).

In the end, Douyin ads do not seem to be so offensive to users, providing Douyin with the possibility to make money without hurting users.

Among them, the "less disgusting feeling" may be attributed to the following points:

(1) The advertising style fits the characteristics of the product

Douyin is an entertainment product, so the advertisements in Douyin It’s almost all entertainment style.

On the one hand, judging from the report provided by AppGrowing[2], Douyin’s “game” advertisements account for a high proportion, and the entertainment characteristics of the game itself are very consistent with Douyin’s product tonality. , so the effect of investing in games on Douyin may even be better than the information-based Toutiao.

On the other hand, the production of non-game advertising content in Douyin is also trying to fit the entertainment characteristics as much as possible. It is funny, creative, and even ghostly. For example, Sophie's creative advertising also gained at that time. It received good reviews[3].

(2) Mark the word "advertisement", the cost is low

The advertisements in Douyin are all marked with the word "advertisement", and the cost is very low, so it is not interesting to see. The videos are the same, just swipe up to skip them.

(3) The frequency of push can be artificially reduced

After clicking "not interested" on the advertisement multiple times, the frequency of push will be significantly reduced. I did an experiment with a friend. I served as the control group and did not click "not interested" on the advertisements. My friends acted as the experimental group and frequently clicked "not interested" on the advertisements. After 7 days, I will see ads when I browse less than ten pieces of content, while my friends will browse dozens or even hundreds of pieces of content without seeing ads.

To sum up, "advertising", a monetization method with high income, strong capabilities, and no harm to users, should be Douyin's focus in the future.

But at the same time, Douyin’s advertising seems to still have room for optimization. The following two small suggestions are given regarding the matching between advertising and users:

1) Improve the understanding of “video advertising” Analysis capabilities of "content"

Although advertisers can now select advertisements and user types when investing, this may not be the optimal matching method. After all, "people" may not have the "machine" in the matching algorithm. "Understand users better. If "video content" can be read by machines, optimized using optimization methods similar to graphic advertising, and provide reliable advice to advertising video producers, the advertising effect will surely be improved to a higher level.

2) Create and further enrich user “commercial tags”

User commercial tags may be different from user hobby tags. For example, people who like cute pets may not necessarily have Purchase needs for pets or pet supplies. Perhaps Douyin already has similar labels, but as far as the current experience of using it is concerned, there seems to be a lot of room for improvement.

If the above two points are improved, combined with Douyin’s existing selection and distribution capabilities, I believe Douyin’s advertising will make breakthroughs in terms of experience and revenue.

Traffic diversion

E-commerce diversion is also part of Douyin’s revenue source. Judging from the report provided by AppGrowing [2], “Tmall” and “Taobao” currently occupy the traffic larger portion.

But Douyin’s ambitions don’t seem to stop here. Does the classification module under the “Same City” section look familiar? Food, attractions, entertainment, etc., eh? Isn’t this what Dianping is doing? ? Therefore, it is speculated that Douyin’s future “diversion” focus will not only be limited to e-commerce, but will also continue to expand to life services.

So how feasible is this work? The appearance is not low:

(1) The video is more expressive

Compared with the comments from the public In the form of pictures and texts, Douyin’s video form is more conducive to arousing users’ love awareness and influencing consumption. Think about it, every time you drool over Douyin food at night, have you ever quietly written down the name of the restaurant you were talking about and tried it?

(2) The community’s check-in culture is excellent

Do we still have an image of the “check-in celebrity shop” that can be seen everywhere in the video title and in the comments, such as bowls of wine and ice cream? , Sky Realm, in the fun, delicious, and beautiful atmosphere created by the video, many users traveled to various parts of the country to consume and post "check-in" videos, while some users who were unable to travel far could only like it quietly. However, after Douyin launched the function of recommending "Internet celebrity stores" nearby to users, has it further stimulated this atmosphere and made the distribution of life services possible?

(3) External environment Better

I don’t know if we feel it, but after a long trip, I have started to search for other life service rating software besides Dianping.

With the extension of the marketing atmosphere, the credibility of Dianping seems to be gradually declining. Has this external environment created an opportunity for Douyin?

To sum up, relying on its huge active user base, Douyin's life service distribution capabilities, formed by directly guiding traffic to merchants, are likely to form another monetization focus.

However, Douyin seems to still have a long way to go in order to distribute life services and connect directly with various merchants. We also put forward the following small suggestions:

If you want to do business If you have a good "credibility" card, you will inevitably need to do some "heavy work" of human exploration in the early stage, including the discovery of high-quality merchants, manual on-site exploration and review, etc. Maybe it would be a good idea to collect "feature" merchants. On the one hand, it avoids competition with Dianping in the dimension of “public merchants”; on the other hand, its features are more in line with the taste of Douyin users.

Corresponding functions are being steadily followed, which may not necessarily be “ratings”. Similar persuasive functions such as check-in, popularity and even “video collections” can help users select high-quality merchants.

Control the pace of monetization and move forward steadily while balancing credibility and commercialization.

The above is only my personal opinion. See the relevant reference articles mentioned in the article below. Thank you for your precious time.

[1] Douyin’s advertising revenue will exceed 10 billion in the next year? But MCN still can’t make money in the channel

[2] Douyin’s first advertising analysis report, game Professional advertising accounts for the largest proportion of investment

[3] Sophie tried Douyin video information flow advertising, netizens marveled and gave full marks

CEndC

Author: lilyblood, Weibo Signal and public account: lilyblood, welcome to communicate~

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