AC G.

Google is a household name all over the world, probably even in the fields of agriculture here in Tianjin.  Gone are the libraries; gone are the people who hand down ancient practices.  Today, if you want to find out something, you go to the Internet.

There really is no avoiding the implications or the sheer need for such a creation.  However, the Internet has become a force of its own.  Bringing down newspapers and magazines, supporting huge networks of people, and creating giants who control information, the Internet is hungry for more power.

There is a huge gap between who wants advertising space, and how much there is to give. Anyone logging on to the Internet will be overwhelmed by the gigantic supply of adverts, which pop up almost anywhere you look.

It is this gaping hole which is creating problems for the advertising industry as a whole. This is because the gap is being filled by sneaky, sometimes underhand methods. It seems that most people don’t understand how this is being done or how it will affect them.

An example of this is “behavior tracking”. This is the Internet’s ability to generate targeted adverts based on the web user’s personal details. While 92 percent of young adults believe behavior tracking is against their needs, the practice is on the increase. http://bit.ly/2IGHT8 In fact, with Google leading the way with targeted adverts for Google Mail users, it is becoming a big problem not only in America but also here in China.  The biggest problem is that most people don’t realize it is happening – or what they can do to avoid being advertised to in this way. In the meantime, they will continue to receive adverts which have been generated based on their sex, location, and age. It’s no wonder that people are starting to become wary of the Internet advertiser’s increased power.

It is particularly when you put advertising into the mix, that the implications for the media become clear. Currently, advertising is the sole model for growth of all media. Figures show that on the web, only 8 per cent of all users account for 85 per cent of all ads clicking. This is down by half through this year alone. http://bit.ly/2IRICw

While it was once the model for tracking, clicking is becoming outdated and new methods of cookie tracking are in force and taking hold.  Now your presence online can be targeted from your initial search query, all the way to your brick-and -mortar purchase, and used for profiling.

Who is King? Display, Search, Print?

The Internet accounts for over 50 billion dollars in advertising every year, with the US alone accounting for 20 billion. This figure is continuing to grow.  Premium online ads are going up 32 per cent year over year with no end in sight. http://bit.ly/2fvISY

Nowhere is this better exemplified than here in China, where some sites are so heavily overloaded with advertising you wonder what content is actually being provided.  Have you ever tried logging on at an Internet café and felt frustrated by the number of pop-up adverts blocking your way?

However China also puts things very much in perspective for advertisers.  This is because for brick and mortar stores selling their wares, the print media is still the most effective vehicle for advertising. http://bit.ly/9nFtB It seems that the Internet has created a strange void between national advertisers and your corner bakery.

This is not stopping the Internet in China.  Sina, China’s leading Internet portal is expected to grow by at least 35 per cent in this year alone. http://bit.ly/htkZb This is like nothing else around the world.  The reason for this is that Asian countries are dominated by display advertising over the Western-preferred search method.  Display here is expected to grow by 60 per cent by the end of 2010. http://bit.ly/3kDJ1a If I were a surfer, I would call that a dangerous reef.

Part of the reason for this phenomenal surge is that display advertising has found a home on social community and networking sites. http://bit.ly/2G8yS3 However, social community sites only hold about 15 per cent share of all online advertising.  In fact the dominance comes from search engines.

Search engine Baidu (which is up from $100.50 to a yearly high of $439.90) is now garnering new power as it integrates its new search results system, known as the Pheonix Nest System. http://bit.ly/QymgF

According to Google’s CEO, Eric Schmidt: “Five years from now the Internet will be dominated by Chinese-language content.”  This might be a free pass for Baidu to start leading the way in which search is created and delivered to the world, while Google continues to focus on its operating system and mobile technology.

My phone is their life!

Another cunning advertising-dominated strategy comes from HTC – the company that makes the nine different Google Android powered phones. By launching its new Quietly Brilliant ‘YOU’ ad campaign, they are promoting the idea that: “You don’t need to get a phone. You need to get a phone that gets you.” http://bit.ly/3jy3cf Of course, they aren’t doing this just to impress upon you their new little toy; this is again an advertising dominated strategy.  Lenovo is even buying back its mobile phone business to pursue mobile Internet technology. http://bit.ly/54jD8Q

While most people are not going to buy a phone with the thought: “Wow! My telephone is now the new ad rag!”  There are many people who would gladly see ads as helpful if it meant that in return they could lower their costs of purchasing the phones or even the service charges. http://bit.ly/6BnSNT People would probably get used to it very quickly – you may have noticed how most phones here in Tianjin are inundated with ad text messages every time you hang up or send a message.

For some people this doesn’t matter because they delete the messages every so often. However, you may be the owner of a new smart phone, which takes several steps to acquire the message and provides you with that dirty little message-notification bleep that won’t go away till you look at the message.  These days there too many able capabilities to deliver full screen MMS messages to your phone while the phone is idle. http://bit.ly/7rvdpj Therefore that is the first thing you see when you click your phone on from the black screen.

Like the movement in the US to stop dinnertime telemarketers, many hope there will be movements to remove these developments in stealth advertising.  Although nifty in concept, after a while the most noticeable thing about them is how annoying they are.  This is a story where again the percentages are low and most people, if they had the chance, would never opt-in.

Hey executives, I’m my own company

But what if you’re on the dark side? Perhaps you’re an advertiser looking to utilize the Internet for your business? The good news is that there are several ways to turn the world of Internet advertising to your advantage.

There are millions of bloggers in cyberspace telling you how you can make money by monetizing your blog.  With so many people claiming to be in the know, how come there are still so few who are actually reaping the benefits?

The bright spot is in the creative.  This year there was a man in the US who made $83,000 broadcasting himself on the Internet.  What he did was go to consumer product companies and said he would wear their company T-shirt for a day. http://bit.ly/1IoWDg Then he got out there, into the sunshine, and took videos of himself wearing it. At the end of a day’s catwalking, he would get on Facebook and share his thoughts, write something on his blog, keep everyone up to date on his Twitter, and basically become a one-man billboard.

This idea has also been demonstrated in effect here in China.  Thousands of girls are online on Taobao promoting the clothes that they buy.  These skinny little things have themselves followed around by amateur photographers as they pose and primp themselves, creating beautiful pictures that the other girls online just simply can’t get enough of – adoring them for all those pretty little pink dresses and haute couture jeans they wear.

This is the new content: Blogging and news feeds.  Whether it’s fashion, how to use makeup, or providing a fresh take on the news, social content makes up 40 per cent of all online traffic – outstripping community, communication, e-commerce and search. http://bit.ly/9m4n5 This content sharing is the premium space on the Internet and the giants are trying to control it.

However, the giants are having a tough time trying to create fair competition in terms of asset prices in the difference between online sales and brick and mortar establishments. http://bit.ly/48zdSS It’s certainly the case that many people now go out shopping with the sole intention of window-browsing and then returning to the Internet to buy.  This creates an even larger supply side window, as more people try to fill the small portion of demand accrued by the big retailers and girl’s shopping sites like Hers.

The ad focus is tried and true and will be

This is a very narrow view on the whole topic, because in reality the Internet population is spread roughly equally across all social economic backgrounds and age groups. http://bit.ly/1HEzxT This comes from better-developed Internet markets. However, eventually this will take place within all cultures. Yet even with the wide swath of consumer interest, advertisers tend to pick on the younger more affluent customers.  The power of the Internet should develop to accept this swath of population, unlike magazines and television have done.

In China advertising is very family-centric with the young heavily influencing the older generation.  Many Chinese adverts try to pull families together.  But in social economic struggles, as we are experiencing now, advertising should associate their product with positive emotions of calmness rather than happiness. http://bit.ly/14cquu China’s advertising is still a little giddy and focuses much on the happy family unit a little too much.  By diversifying the mother from the father from the daughter, advertising will become more effective.

For instance with the various super novas, Google is trying very hard to take over the mobile phone industry by attracting younger generations who understand more how to utilize smart phones.  Apple is hoping to come into China to reach the mature wives market with its advertised ability to help the home become a place of prestige.  In addition, Microsoft is focusing on the business end, looking mainly at the older generation with their Software as a Service (SaaS) and helping the businessman of the house create value in their business. http://bit.ly/Z6kex

You are there and I will reach you

The Internet is the key to all of these changes and ChinaNet (CHNT) a full-service media development has already shown third quarter results in an increase of 21.7 per cent. http://bit.ly/3uGBcc It seems strange that companies similar in the US are at such a disadvantage.  The US currently wants everyone to pay for their content and only 50 per cent of US citizens would be willing to pay a fraction for their media content. http://bit.ly/aW9us

In addition, the US is currently thinking of using tax-payers money to finance journalism. http://bit.ly/Aomdf There are now even algorithms that generate story ideas, which in turn predict the revenue they will generate, and determine how much they are worth. http://bit.ly/8zBqkY Where China already has government regulation on content, the US is now stepping in to see whether this area needs regulation.

This could sound a death- knell for Internet advertising and cause it real harm.  Recently there have been privacy hearing and briefings. http://bit.ly/2auIjL This is mostly due to the usage by the adolescent age group who are now picking up the Internet heavily.  The line between what adults use as content and what children explore is becoming more blurred, especially here in China.

In the US KidZui is a new web browser that maximizes parent and child computer time to connect and converse through shared content online. http://bit.ly/e4H1w Here in China it is all too obvious that the children own the computer and the parents watch television.  There is almost no interaction at all.  High school students can spend endless hours after school staring at the computer while parents cook dinner, clean up and make themselves ready for bed.  There is almost complete separation between the family members.

However, while the students are busy studying at school, the parents are busy developing their new business models around advertising.   In the US, 42 per cent of SMBs have websites. http://bit.ly/25Ld80 In contrast to those that build websites the smaller businesses advertise more.  It is difficult to say whether this will come to Tianjin.  While the small guy sees the need to advertise, or otherwise the family network is soon to run out, many of the smallest businesses do this by using stickers or plasters.  The Internet is seen as a domineering component in advancement.

Small families with small time shops see traffic as the people who pass by their shop, not the people who see them as part of the local online community.  It is the children in the family who are building these neighborhood bonds.  How to maximize them as an integral part of the family business, most likely dismays them, let alone their parents.

That’s mine: Give it back!

As for television in China, $1.6 billion will be spent next year on China Central Television – an increase on previous years. http://bit.ly/2yzE4C There is no doubt that China will watch television in the future, but the dynamics of television are limited.  This again only allows national television sponsors and major foreign influences to enter.  The message will be clear: Following the age-old tradition – family is always first.  The market is huge and the focus is limited, for this reason supply is low and demand is high, therefore higher prices.  This is a good strategy if you are in the television business, but proves to be a bad buy if you are in advertising.  There are alternatives but there are also other things taking place.

In the US there have been eight quarters of double-digit drops for the advertising industry in newspapers. http://bit.ly/8VQppo Here in China, newspapers are still easy to get, and much is the same online.  For some reason, online newspapers are not cannibalizing the printed version.  They are almost one in the same.  It is like reading the printed version, simply transformed online.  There is not an overload of spotted advertising and the screen is left resilient enough that you are free to browse your e-paper.

However, China seems to be one of the more outstanding economies when it comes to context.  In most areas of the world, content is copied between four and 15 times around the Internet.  That means that the same story is just copied over and over.  With this in mind, how does the Tianjin newspaper fare when the locals can find the same content on most of their favorite sites, without ever going directly to the news channel site?  The reason is that it really takes that much to reach that many people.

However, in the US the FTC has claimed that newspapers have lost $20 billion over the last year. http://bit.ly/6ySRUu This is not happening in China at all.  Newspapers are so easy to get and they come in morning and evening editions, and people have so much time to break open the paper, that advertising is still a very strong medium here in Tianjin.

Hey hey hey, you figure it out

Tianjin is not worried about advertising.  In fact it is accepted and well reputed here.  The age-old saying of breaking through the clutter is almost dust in the wind here.  Clutter provides a promise that people will notice it.  And yet people try so hard.

Compared to traditional advertising, product placement can arouse the least unpleasant feeling from the audience because it is naturally merged into the scenes of a movie or game and does not interrupt the user’s enjoyment.  Integrating commercials into games can create more influence to users because movie product placement is static while in games it is interactive. In fact, when a user finds a new ad in a game in China that they are familiar with and used to playing with it, the first reaction is to not to ignore the ad but to click on it and see what bonus one can get by acquiring this product because such a product always possesses some properties that can give a hand in the game.

So advertising in China is well accepted.  The rest of the world should watch as China takes over the first initiative to incorporate advertising into everything that is online.  It is admired as well as empowering.  The overwhelming presence of the fad will not leave China.  The rest of the world will find it difficult to leave these fads unnoticed.  Millions of people are being attracted to seemingly simple advertising tools.  Although they may be cloaked in games or cinema, it does not matter because this country prides itself on the incoming of gigantic pulls in seemingly unnoticeable emotions, like joy.

Advertising is a giant, so it must have a purpose.  In most countries, critics cry out that there should be none.  But the true-to-heart know that advertising is likely to be here forever.  It seems safe to say that advertising will drive the economy in 2010.  Advertising will be the first notifier for every industry that will once again re-emerge. When people have the money to spend on advertising, it means that things are looking up for public spending. However this time, advertising is no longer the indicator but the master. It creates a cycle: Advertisers spend money trying to get people to buy their products – thus granting them more money to spend on advertising.

Google, as always, is at the forefront of this wave. The company is always trying to develop and innovate their adverts. They want them “Bigger, Better, more Interactive. We’ll keep trying new things until we discover the ‘perfect’ ads.” http://bit.ly/5OFXjB And this is all going to happen in a blink of an eye – or the click of a mouse.

This graph shows the amount CPM’s cost per industry, some a little over $12 and some only $3.  I will have to go back and reference this factoid but only 2% of all ads on the Internet are clicked on only once.  So if we take the first ten industries giving us ten industry CPMs and say ten advertisers per industry that would give us 100 ads and 100,000 views.  Now only 2 of those ads would be clicked on.  The total for the ten industries is $76.13 and the total for the 100 ads comes to $761.30 for the 100,000 views meaning each click is then worth $380.65.  I could fly to Singapore for that.

Basically the cost per click method is way more valuable than CPM.  I don’t know why more people don’t use it!

If you want to find the future, you have to get back to the basics.  Think of it in terms of Word and SMS.  Would I literally write my grandmother a letter saying I used something?  Or would I literally write my friend that I love to rent movies from a certain place just because, and not because it is the closest?  The big big dollars are being mounted on less and less supports.  And yes there is strangely absurd correct placement of advertisements on the web these days with re-targeting technology and

SmartKiosk Media will deliver Digital-Out-Of-Home (DOOH) advertising via interactive “SmartKiosks,” smartphones, internet social networking sites, and a unique format of direct mail print advertising to consumer households.

Now this is pretty amazing and along the same line as my idea.  My idea again is to use the web, print and outdoor advertising to collect coupons via a coupon code that can be collected using your phone number, on the web or by texting.  On the web these ads can be on social networking sites or use of local targeting software agencies.

The kiosks in my theory was for pre-shopping and collecting of additional deals of the day at your grocer or mall outlet.  When these coupons are then validated at the point of purchase using your phone, and it doesn’t have to be a smart phone, then the retailer is sent the validation as well, eliminating cheating coupons.

The final step is the print media sent to the users house.  Now I am pretty sure that the material this company is sending is just Direct Mail full of ads, even if they are targeted or not.  My idea is to link your magazines and newspapers to your shopping history, something you can also tailor online.  Then when the magazines and newspapers of your choice come to your house they are full of relevant advertising that make a difference to you.

With all the screaming and hollering about the print industry dying it is any wonder why they haven’t tried to absorb this idea.  But the good thing is, if I can get the numbers, I now have something to pull from to allocate risk analyses and profit margins. So, go Smart Kiosks!

Who do you work with? What do they do? Well I’m here today representing Clickboards. Clickboards is a new type of Internet advertising that connects the web to feed to mobile.  The reason it is called Clickboards is because they are like banners but you can click on them more than once (making a clicking motion with my hand) and you can enter information into them like your phone number.  Then without leaving the site you are on, the information is sent to your personal coupon feed.  Then those discounts on the feed can be accessed at the point of purchase with your mobile.  The discount is then verified for the vendor and is erased from your feed.

I told a lot of people I was based in Tianjin and why Tianjin was such a perfect test market for the fact that most retailers have no register or computer in the stores and that I was at a point where I just need to start spending money to get it started.  Most people were a little shocked I was from Tianjin.

So…………………. I met a lot of great people from really cool companies. I guess the conclusion is that I am successfully beginning to brand the term Clickboards and I’m still number one when you Google Clickboards.

I did get to thinking if some of these guys wanted to start this in more developed markets, and I tend to believe that having oversimplified Clickboards to get to this point, that it wouldn’t work.  So I am in the clear as far as broadcasting my message.

Next post is about Smart Kiosks and how they are already being installed, and in the beginning of creating Clickboards this was part of the conclusion to the future development of Clickboards.  So now how do I leap frog?

This article is about the traditional mobile couponing campaigns underway.  My mom sent this to me and here was my response:

That is not what I am doing but very effective.  I allow users to collect the coupons rather than just be an open portal to discounts that they may or may not use, thus receiving anything and everything.  Also here in China I have to deal with no computers at the point of purchase but still have to verify that the coupon is valid.  I can also go from print to feed to mobile.  Not just surfing the net to feed to mobile.  By feed I mean that the users have a personal account at advertual.com and can collect more coupons from around the Internet, set their settings for advertisers to direct to sell to them, and access their feed of coupons from their phone, much like what I see in this article.  Sounds the same but mine can work for any retailer no matter how big or small with point of sale computers or not.

I checked out the sites that were in the article.  The coupons are so un engaging it is the exact same as cutting coupons the way you used to except on the computer.  Completely boring.  There is no sale done by the retailer except the money off.  Apparently the sale already has to be made then you have to find the coupon and then save.  My clickboard makes the sale, gives you the discount, and then rewards you at the final purchase.  This is advertual, not couponing.

I told them that this magazine probably makes about RMB1,000,000 a year.  That got their attention and they asked if I could do it on my own.  I started telling them about printing, which is probably RMB2 per copy, the staff needed, and fact that the magazine should probably be an emag.

They are still interested in we are in the midst of thinking this over.  My idea would be to make about a forty page editorial and journalistic magazine.  We would launch it at the same time as our new website.  The website would have all the listings and maps and relevant info on it.  And I will discuss the Clickboards option with them.

What I want is to have all the information on the website able to be sent to your phone.  So if you are looking at a listing or a coupon, you can send it to your mobile.  So in a sense we would be launching three things at once: a website, a magazine, and a mobile application.

The mobile application would be created by Alvin from mGuanxi, this group I am now in contact with would create the website, and I would create the magazine.

I would also be responsible for bringing all the advertising clients from Jin and Tianjinexpats to the new magazine lineup.  I want to call the magazine and website ‘The Grind’,  but I’m sure I will think of something better.  Selling advertising in the beginning is going to be hard and cheap.  But I think I could get people to sign contracts that they would start at a base pay and then month after month the price would go up 5% until the retail price has been met.  However, with the whole operation based on advertising sales based on a very infantile start-up, things are shaky.

So let’s see.  I want to do this, thing is I will probably have to support myself till there is actual revenue.  Hopefully the others feel the same way.  Maybe my old professor Shafa could help out because he keeps telling me I should buy Jin Magazine, where I currently work.

This is starting to really get somewhere.  The interactivity is what it is all about.  The actions on the ad can be tracked.  However there is no user input.  I’m sure this will eventually be incorporated.  Another down play is that you still need to be directed to a third party website in the end for various options.  I know that is most advertisers point, but in the end it is unnecessary and is a draw back.

I want Clickboards to be much like the Google Gadget Ads and I think if I want to start I should probably just create them and become a client of Google and just use them the way I want to.  It’s not hard with this format to promote discounts and relay enough information to promise the user that when they disclose some information about the product they like that the next time they go to the store to purchase the advertised item, the discount will be waiting there for them.

Clickboards.net is currently under construction. Coupons will be able to be collected from the site and around the Internet using the Clickboards and sent to users coupon feed on Clickboards.net.

Coupons in users feed can be redeemed and verified at the point of sale for the records of the vendor and then be expired from the users feed.

Print and other media can use mobile device to collect coupons and send them to users feed to later be redeemed again using their mobile device.

Right now the mobile number and service is going to cost me RMB5000 a month.  The set up for the application to be used with the website will cost me RMB10000 a month for development.  The initial cost for development is water under the bridge and probably won’t be recouped for maybe a year.  I do believe I can sustain the site with no losses making RMB5000 a month.  Charging advertisers RMB1 a click or maybe RMB3 per acquisition of the coupons, that would mean I need 1500 coupons collected each month.  So if most people collect at least three coupons I would need 500 unique visitors to my site.  I believe that that number is attainable if I promote myself well and people see the relevance of the coupons.  Either it will become sustainable or die a quick death.