This is my reply to a recent email from the SVCEF (Silicon Valley Chinese Entrepreneur Forum) mailing list and thought someone may like to read it here. The topic is about advertising opportunities in China.
I would only want to convince all advertisers using AllYes (one of the largest ad network in China, imagine its advertising.com ) now to my platform if my startup can bring clea additinal value to those advertisers. Or put this way, I'd only want to start a company if I am sure this company can bring additional value to advertisers than what AllYes/DoubleClick can offer today. That value should include switch cost for advertisers etc so at the end if my startup can save advertiser $1M per year for the same result by using Allyes or additionally $1M sales by investing same amount of ad $, then I would feel confident to charge a percentage of whatever $1M - 2 x switch cost that equal to.
Behavioral targeting technology, IMHO, is ultimately the data play. Baidu/Google keyword ad is already behavioral targeting technology. Because it display relevant ad based on our behavior (search keyword or URL we are visiting). Their advantage is the huge amount of data that they can run millions of statistics model analysis like using SPSS/SAS which any startup will find very difficult to compete with in terms of efficiency.
That's why Google want to digitalize all books/magazines whatever offline. Because without having those data, Google is just a F22 on the ground running out of fuel. And that's where the opportunity is in terms of offline.
Nokia finally wakes up to formalize its mobile strategy to reinvent itself to be a mobile-centric Google. Google never could get those billiosn of SMS data from China Mobile/Verizon/BT etc but Nokia etc could. Regardless privacy concern, Nokia can easily tap into this Mobile Adword market.
So where is Data? then there is the opportunity.
Technorati Tags advertising,china,data,svcef
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