The Weather Assistant that Li Mu wanted to make was inspired by a weather-related app in his previous life.
Integrating the Weather Assistant into YY could increase the practicality of YY's own functions. On the other hand, the cartoon image of the Weather Assistant could also change the practice of only displaying weather icons in the weather forecast in the past. Adding a cartoon image to enhance interaction with users would definitely be subversive in the weather forecast.
The Weather Assistant could wear a mask when the air was polluted to remind people to pay attention to their health. It could also hold an umbrella when it was raining to remind people to pay attention to the rain when they go out. It could also wear sunglasses to remind people to pay attention to the sun. This presentation method itself was very approachable to users, so it would also increase their favorability. Under such circumstances, the effect of product placement would definitely not be bad.
Moreover, Li Mu had basically figured it out. The Weather Assistant's cartoon image could be directly licensed by a celebrity, such as Anne Hathaway. If she was willing to license her cartoon image to Makino Technology, then Makino Technology would add her image to the Weather Assistant for users to choose from. This in itself would be a huge boost to her popularity. If millions of men used her cartoon image as the Weather Assistant, then her own influence would inevitably soar.
In fact, implantable advertisements had been popular in traditional industries for a long time. Most of them were shown in films and television works. Implantable advertisements on the Internet had not really appeared so far.
What Li Mu showed George Barkley was the way to play after the mature business model of the Internet. Using product elements as the carrier of advertisement placement, this advertising method could avoid harming users to the greatest extent, and it could also ensure the actual effect of the advertisement.
George Barkley was particularly interested in the new gameplay that Li Mu had mentioned. As he listened to Li Mu's introduction, he constructed a product blueprint in his mind. It was as if he could see a weather forecast display box appearing on the screen. It showed: Silicon Valley, cloudy today, temperature 5-36 degrees Fahrenheit, PM2.5 index 98, recommended to wear N95 mask when traveling.
Then, next to the weather forecast, there was a cartoon image wearing a down jacket, a woolen hat, and gloves for this season. Most importantly, he was wearing a 3M mask on his face.
When the mouse clicked on the mask of the cartoon image, it would automatically jump to the introduction of the mask on 3M's official website, or directly jump to the address of 3M's e-commerce platform in the United States...
Thinking of this, George Barkley was extremely excited. This was the biggest reason he came to see Li Mu. If he could really cooperate with Animal Husbandry Technology in this way, then 3M's image could appear in the eyes of the people when they needed it the most. This advertising method was simply genius!
In his excitement, George Barkley blurted, "Mr. Lee, I'm very interested in this cooperation model. It should also be very suitable for 3M's of 3M '. It should also be very suitable for 3M's current needs. It should be very suitable for 3M. When do you think we can start?"
As soon as he finished speaking, George Barkley hurriedly said, "I'm sorry, Mr. Lee, I've been careless. I still don't know how to calculate the cost of such a cooperation."
Li Mu smiled slightly. "I haven't further refined this idea, so I haven't figured out how to calculate the cost for the time being. However, I think that under normal circumstances, if it's not an e-commerce advertisement, there are only two ways to calculate the cost. Either the promotion resources are clearly priced, or the payment is based on the display volume. If it's an e-commerce advertisement, we can also use the cooperation model of net profit sharing. However, this is definitely not suitable for 3M, so we can discuss the other two specifically."
George Barkley nodded in agreement. The e-commerce industry in the United States was not as developed as he had imagined, and the penetration rate was not very high. Therefore, 3M had basically not tried to do e-commerce on their own. In that case, the net profit sharing model was not advisable. The only two left were a one-time buyout and pay-per-view payment.
Although a one-time buyout sounded very convenient, for George Barkley, without a practical and accurate reference as a standard, it was difficult for him to determine the value of Li Mu's recommendation. If the actual effect was only half of the money invested or even less, he would have suffered a huge loss.
In that case, it was more cost-effective to pay for the display volume on a per-view basis.
Every kind of advertisement would measure the cost of the user. The more popular algorithm was the cost of 1,000 people. In layman's terms, it was the cost of displaying the advertisement to 1,000 users.
For example, a television station had a million viewers watching at the same time at a certain time, and 3M would need to spend 500,000 USD to advertise ten times on such a television station. In that case, the cumulative number of viewers would be 10 million. According to the statistical standards of the advertising industry, the cost of an advertisement per 1,000 people would reach 50 USD.
The conversion rate of television media was not high. Under normal circumstances, the audience would only take a glance at it, and at most, it would strengthen their memory in their mind. There was no way for the user to directly understand or purchase the advertisement after seeing it. However, it was different for Li Mu. When the user saw the display, they only needed to click on it, and they would be able to gain a deeper understanding or purchase the advertisement directly. Naturally, the conversion rate would be much higher.
According to this calculation, 3M was willing to bear the advertising cost of 80 USD or even 100 USD per 1,000 people for such an advertisement.
After figuring this out, George Barkley hurriedly said to Li Mu, "Mr. Li, I think I'm more inclined to use the cooperation method of pricing based on the display volume, so I might need your company to set a specific display price. If there's no problem with the price, we can sign the contract at any time."
Li Mu had long guessed that George Barkley would definitely choose the cooperation method of pricing based on the display volume because this was the most balanced method of pros and cons, and also the one with the least risk.
However, entrepreneurs always tried to minimize the risk, but it was easy for them to gradually fall into someone else's trap and eventually become their slave.
In his previous life, Baidu's criticized keyword placement was based on the display volume, and at the same time, they added bidding on this basis.
For example, many hospitals in Putian were fighting for the search results of the keyword "psoriasis", and whoever offered the highest single price would be ranked higher.
Li Mu had heard that the bidding for keywords such as "plastic surgery" and "cancer" was inflated to a few hundred RMB per click. In other words, if a user clicked on the first hospital in the list for plastic surgery, the hospital would have to pay Baidu a few hundred RMB for the display volume.
Such bidding was not something to be afraid of. In fact, such bidding was common in profiteering industries. Some people would think that they could make the hospital go bankrupt as long as they kept clicking on the link of a bidding hospital. In fact, such a situation did not exist. In order to give these bidders a safe and secure promotion environment, Baidu would use a series of technical measures to block fake clicks, and as much as possible, ensure that the clicks that were included in the fees were real clicks.
With Baidu's careful protection, the bidding hospitals only needed to look at the clicks, conversion rate, AURP value (the average spending value of a single user), and profit ratio to determine the profit point of their placement.
For example, a certain plastic surgery hospital was bidding on Baidu for the keyword "plastic surgery". If 10 people could spend at the hospital out of every 100 clicks, and the average income was 10,000 RMB, it meant that every 100 clicks on Baidu would bring the hospital a gross profit of 100,000 RMB. If the hospital's profit margin was 50%, then these 100 clicks would bring the hospital a net profit of 50,000 RMB.
100 clicks could be exchanged for a net profit of 50,000 RMB. In other words, as long as the cost of each click was less than 500 RMB, the hospital could make a profit. In this case, even if the bidding reached 300 RMB or 400 RMB per click, the hospital would not hesitate to do it, because within this cost range, they could make a profit.
In this way, the result was very terrible. Although most Putian hospitals were making money, a considerable part of their profits were all contributed to Baidu. Maybe a hospital earned 100 RMB a year, and 90 RMB had to be sent to Baidu. Although the ratio was terrible, they had no way out. Once they stopped their placement, it was equivalent to cutting off their income. If they cooperated with Baidu, they could earn 10 RMB, but if they did not cooperate, they would not earn any money or even suffer a loss. Under such circumstances, none of these hospitals would give up on cooperating with Baidu.
In fact, it was not only Baidu, but also Boss Ma's Taobao.
Both Boss Li and Boss Ma gave their advertisers the same choice: Either don't make money, or give me more than 50% of the net profit!
This kind of bandit-like play was what Li Mu despised the most. If Taobao also started bidding on keywords, there would be a large number of Taobao sellers throwing money at it like crazy. At that time, through the fierce competition, Taobao would definitely get more than half of these ordinary sellers' profits. However, Li Mu was absolutely not willing to do this.
What he wanted to do was based on a healthy and fair cooperation model.
For example, Li Mu would definitely not do bidding on keywords in Taobao. Therefore, his Taobao's profit margin was much lower than Boss Ma's Taobao's in his previous life.
For example, the current Taobao's mobile phone sales were extremely hot. If Li Mu put the keyword "mobile phone" in Taobao's internal bidding, there would definitely be a large number of mobile phone manufacturers and mobile phone sellers fighting for this keyword. In that case, when users searched for mobile phones, the default displayed to them was not the one with the best reviews, the one with the highest sales volume, or the one with the highest reputation. Instead, it was the one that paid the most for this keyword. In this way, it would be difficult for consumers to find the most suitable store and product for them.
However, what Li Mu used in Taobao's keyword search was a set of highly fair algorithms. This set of algorithms used several key data as weights, such as: product sales volume, product's favorable rating, store's favorable rating, and store's credit rating. When these data were calculated together, whoever had the highest overall score would be able to appear at the top of the default search. In this way, although Li Mu would lose a large amount of income from keyword bidding, he could ensure that what the users searched for was the best in all aspects.
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