Applicable platform: O2O// e-commerce platform where many businesses settle in.
I recently switched to the advertising platform next door to make a new commercial advertising product. As a newcomer, how to quickly understand the overall income status, income structure, health and potential of this platform? How to quickly locate the position of your responsible part in the overall income? If you can't establish the cognition of the overall situation, the orientation and development of your work is like looking at flowers in the fog, which may be easily fooled.
Want to know the advertising revenue of your enterprise? Open the data background and see about 20 thousand indicators (exaggeration), where to start ~
The simplest thing is the overall income, but only know that the overall income can't solve the problem, but also know the composition and health status of this income.
In fact, the answer to this question involves the basic dismantling of advertising revenue and the understanding of key data indicators. (So it is also suitable for friends who want to know the key indicators of advertising revenue. )
Advertising is the business of selling advertising products (usually "traffic products") to merchants to obtain income. So there are two basic aspects to the advertising business of a platform:
1. Advertising product (traffic) orientation
Revenue = revenue of advertising product A+revenue of advertising product B+revenue of advertising product C. ...
CPM product revenue = advertising traffic (effective exposure) *eCPM* recall rate
CPC product revenue = advertising flow (effective exposure)? *CTR * eCPC
2. Business orientation
Revenue = number of advertisers *ARPU
Income = merchant budget * budget consumption ratio
I suggest that first of all, from the perspective of merchants, this level can help us build a better understanding of the overall situation.
Revenue = number of advertisers *ARPU
We need to look at the following six questions:
1. What is the number of merchants in the whole platform? (Daily average number of online merchants on the platform)
2. What is the number of advertisers? (Average number of online merchants per advertising day)
3. What is the penetration rate of advertisers? Answer 2/ answer 1= answer 3
Through the penetration rate of advertisers, we can roughly understand the current expansion degree and follow-up potential of this platform, or the key businesses (types) targeted by follow-up efforts. If you can, ask your classmates again, how do you push business advertisements at present? BD/ promotion? Agent? Business self-help+operational assistance?
4. How much does a single merchant spend on the advertising platform every day? The so-called merchant ARPU value.
If the advertising business has been running smoothly, the ARPU value of the merchants may feed back the profit rate of the merchants on this platform to some extent. Of course, this is based on the assumption that the higher the profit rate of a business, the more willing it is to pay for advertising.
So on the other hand, if you have a general understanding of the profit rate of a certain type of merchants on this platform (if it is a closed-loop trading platform, you can check the daily trading volume of merchants), you will also have a psychological expectation. Under the current ARPU, are these businesses willing to spend more money on advertising? When you develop more products in the future, will you divert their total budget, or may they propose a new budget?
5. From the perspective of the business budget, how much budget does the business come up with? What is the consumption power of the platform? But this needs to be divided into products, so it is explained in detail in the second part.
6. Further down, you can distinguish different types of merchants and split the income of merchants within the classification, such as Ka/ small and medium income ratio? The income proportion, penetration rate and ARPU value of catering/marriage/games/daily chemical merchants. You can also quickly recognize where the business focus is.
Btw, after arriving at a platform, it is also very important to understand their main classification basis for businesses, reflecting what the main indicators of this platform are concerned about businesses.
Going back to advertising products (or traffic products) can help us understand the status of platform products from a more detailed perspective.
1. Income structure
Advertising revenue = advertising product A revenue+advertising product B revenue+advertising product C revenue. ...
From the revenue proportion of platform advertising products, we can see what the cash cow business supports the platform at present, and with other information, we can know what the key breakthrough business is.
Example: Average daily income = list filtering 100w+ search 200w+ alliance 10w+ exhibition 80w.
Obviously, the above cash cow business is list filtering+search advertising.
What is the alliance business? Is it difficult to do new business or the business itself?
What about the display business? What is the current situation of this income?
This is about to enter the next stage of sub-products to see the indicators.
(P.S. If you don't know what advertising products this platform has, throw a trick: ask their business operation classmates to come to them and introduce the overall products for business education PPT ~ ~)
2. Indicators classified by product:
Traffic advertising products mainly include CPM billing and CPC billing. As we know, the formula for calculating the income of these two types of products is as follows:
CPM product revenue = advertising traffic (effective exposure) *eCPM* recall rate
CPC product revenue = advertising traffic (effective exposure) *CTR * eCPC
(Among them, the effective exposure of CPM products can be decomposed into: visible exposure of PV*; The effective exposure of CPC products can be decomposed into: realizable PV/qv * coverage * density. This can be understood as effective exposure, and the specific disassembly depends on the flow conversion funnel. The theme of this paper is to quickly understand the business, so I won't expand it. )
As can be seen from the formula, the flow size * flow value * recall rate is the key element of income.
To sum up, the following indicators can help us to quickly establish awareness of product scale and product flow value, and facilitate horizontal observation of products:
Among the above data indicators,
Through the indicators such as income and exposure, we can get a glimpse of the product volume;
ECPM, eCPC, CTR and ROI are the measures of product value;
What is the budget consumption ratio and advertising filling rate? We can see the current supply and demand situation of this product in the market as a whole.
If you look closely,
(1) product order index
Product exposure number: mainly feedback the product position, and the specific analysis still needs a flow funnel.
(2) Product (flow) value index
ECPM, the income from thousands of advertising exhibitions, is one of the core measures of CPM billing method;
ECPC, that is, the revenue from clicking on text advertisements, is one of the core measurement indicators of CPC charging methods;
CTR, click rate, is mainly investigated in CPC products, and it is also one of the main directions of CPC product optimization;
ROI, return on investment of merchants' advertisements = transaction amount generated by merchants through advertisements/advertising expenses of merchants. Merchant ROI is one of the most important indicators to measure the effect of platform products. What is the advertising platform for? You can look here. (It should be noted that the "transaction amount generated by merchants through advertisements" in the formula may have different definitions for different products on different platforms. Some are calculated by clicking on the advertisement-the direct order amount of the order, and some are calculated by clicking on the second order amount that matches the last transaction; )
Budget consumption ratio, advertising consumption/business budget;
In CPM products, advertising filling rate, advertising exposure number/realizable PV are mainly investigated, which is also one of the main directions of CPM product optimization.
Give an example ~
The main revenue sources of M platform are two advertising products, A and B. A is the product sold by CPM and B is the product sold by CPC.
In the above example, we can quickly implement it through tables.
The budget consumption ratio of product A is about 30%, and the business budget is sufficient, but the consumption is far from enough. Is it a traffic bottleneck or an urgent need for an optimized allocation strategy?
At the same time, we can see that the advertising filling rate of product A is almost saturated, indicating that the main problem is traffic bottleneck.
2. When we compare products A and B, we find that the eCPM value of product A sold by CPM is lower than that of product B sold by cpc, which does not seem to reflect the overflow value of CPM sales. If you use oCPM to optimize the click-through rate first, will you find that the revenue charged by CPC is higher later?
So far, I have established a preliminary understanding of product quantity, value, supply and demand. And I can almost clap my hands and call it a day ~
In more detail, for traffic products, we can further look at its traffic funnel, the situation of different cities, and the cross-analysis with business indicators. And then enter the topic of advertising data analysis, so I won't say much here.