10: Section 10

Logically, it’s normal for the number of users to decrease after ads go live.

But according to the Big Data from Douyin,

the user growth hasn’t slowed down at all due to ads going live; in fact, it shows a trend of increasing.

However, in the short term,

most advertisers haven’t realized the problem with Weikan and are still continuing to place ads.

And a few days later,

the discrepancy in ad feedback between the two short video apps directly shocked everyone.

Chapter 11: The Unit Price is So Expensive, Let Me Tell You Why! (Seeking Fresh Flowers!)

One day after Douyin and Weikan ads went live simultaneously.

In Yiwu City.

“Quick, quick, quick! There are still over three hundred orders to ship!”

“Over there, hurry up too.”

Ye Xian'er was at the warehouse entrance, instructing employees to pack and ship clothes.

After placing ads on Douyin yesterday, Ye Xian'er hadn’t held much expectation, as Douyin’s user base was still too small compared to Weikan.

Her original expectation was that the ads on Douyin could bring her dozens of orders a day, which would be quite good.

But she never expected that

only one day had passed,

and she had already received nearly a thousand orders.

Such exaggerated Big Data had not been achieved even during her most glorious entrepreneurial period.

But now,

after only one day of advertising on Douyin, the clothes she had sold had already exceeded her single-day record.

And since she woke up this morning, she had been busy with shipping and hadn’t had time to check her specific sales Big Data on the Douyin backend.

Just as Ye Xian'er was busy shipping,

Zhao Yu’s irritable voice outside the warehouse began to ring out frantically.

She was on the phone with her employee.

“What? Weikan’s customer service number is unreachable? Keep calling for me.”

“After placing ads, on average, only one person buys for every thousand views. Who can bear such Big Data?”

“Even if one view only costs ten cents, a thousand views already cost a hundred yuan. How much is one of my clothes? In just one day, I’ve already lost a lot!”

“Keep calling for me. If not, I’ll fly directly to Magic City tomorrow. With such a low user purchase rate, isn’t Weikan scamming people?”

“After this, I will definitely not place any more ads on Weikan.”

After hanging up the phone, Zhao Yu glared at Ye Xian'er’s side, then rushed back to her own warehouse.

She wasn’t aware of Ye Xian'er’s situation and didn’t think Ye Xian'er was packing orders for shipment. She thought Douyin was like Weikan, where ads had little effect, so Ye Xian'er was preparing for a clear-out and bankruptcy.

Listening to Zhao Yu’s voice, Ye Xian'er also stopped what she was doing, preparing to check the consumption of her advertising fees on the Douyin backend.

She thought her sudden surge in orders was because Douyin had placed countless ads for her in a short period.

If that were the case,

then her one hundred thousand advertising fee should be mostly gone.

After all, for every view of her ad by a Douyin user, she had to pay one yuan.

In this way,

although there were many orders now, there might not be any more later, meaning she wouldn't actually earn much.

But the moment Ye Xian'er opened the Douyin backend, she froze.

Because she found that her advertising fee still had eighty-five thousand remaining!

In other words,

calculating at one yuan per view, her thousand orders were actually brought in by fifteen thousand Douyin users who saw the ad.

“How can the profit ratio be so exaggerated?”

“No, that’s impossible.”

“I must have seen it wrong.”

Ye Xian'er’s voice was trembling slightly.

She hurriedly clicked to view the detailed Big Data.

But after seeing it,

countless shocked expressions filled her face.

Because she hadn’t seen it wrong!

Although Douyin’s ad unit price was high, on average, one click occurred for every five views, and one purchase occurred for every three clicks!

In other words,

on average,

for the ads she placed on Douyin, one person purchased for every fifteen views!

Such exaggerated Big Data was completely unmatched by any form of advertising on any software.

Thinking of this,

the shock on Ye Xian'er’s face increased even more.

She vaguely felt that Douyin’s future development would probably far exceed everyone’s expectations.

This was an opportunity.

After all, the profit in the apparel industry was already very exaggerated; even if she had to pay Douyin fifteen yuan in advertising fees per item on average, she could still make a huge profit.

The next second,

Ye Xian'er hurriedly dialed the bank’s number.

“I want a loan, directly mortgaging my house.”

“May I ask what is the reason for your loan?”

“To purchase goods and buy ads!”

Because Ye Xian'er was among the first batch of merchants to place ads on Douyin, she was also among the first to discover the terrifying potential of Douyin ads.

Almost at the same time,

the small number of merchants across the country who chose to place ads on Douyin almost all decided to increase their investment.

And to avoid competition, these merchants, with a tacit understanding, did not transmit this information immediately, only quietly increasing their volume.

Most of the people who chose to place ads on Weikan were currently busy arguing with Weikan, and not many realized the potential of Douyin ads.

At this time,

even within Tencent, they didn’t know that the profit ratio of Douyin ads was so exaggerated.

Their internal operations were already in chaos.

Because they themselves hadn’t anticipated that Weikan’s ad click-through and purchase rates would be so low.

However, this point had already been within Wang Mo’s calculations.

Short video software was a type of software that had never appeared before, and the content it contained encompassed countless industries and aspects.

In other words,

short video software users were also of various types.

Precisely because of this,

short videos could accommodate various types of ads.

The most crucial part of this was how to distribute different types of ads to different users.

Previously, various software in this world almost always had fixed user targets, and ad types were almost always fixed.

For example, in a certain financial software, the users were all people interested in finance, and the ads placed were basically all related to finance and wealth management.

For such targeted software and ads, even without the existence of Big Data, purchases would occur for every two hundred views on average.

Weikan’s internal estimation before was also like this.

But they overlooked Weikan’s massive user base and the different types of ads.