Douyin | Kauishou | Bilibili | Baidu | Tencent | Ocean Engine

Source: QuestMobile

21 April 2020, QuestMobile released “2020 China Mobile Internet Spring Report“. The report states that the number of China mobile internet users per month exceeded 1.156 billion in March 2020. Daily spent per person per month records from 5.6 hours last year to 7.2 hours, a 28.6% increase. However, internet advertising revenue fell 19% year-on-year.

1. Mobile Internet monthly active users (MAU) rose 17 million from the end of 2019

Affected by the pandemic, a lot of needs including user consultation, life & entertainment has moved online in China. The domestic mobile Internet MAU scale increased by 17 million from the end of 2019 to 1.156 billion.

MAU of China Mobile Internet
MAU of China Mobile Internet

Apart from the MAU increase, the time spent on mobile App increased by 28.6% from last year. Also, on a monthly basis, each person used more than 25 Apps.

Time Spent (Daily) & No. of Apps using (monthly) per person
[Left] Time Spent (Daily) & No. of Apps using (monthly) per person [Right]

The frequency of using pan-entertainment App in Q1 of 2020 increased significantly. Not to be surprised, they are mostly within gaming Apps. MOBA and flying shooting product used time increased by 85.2% and 80.4% respectively.

Top 10 Total Time Spent among different Categories (Mar 2020)
Top 10 Total Time Spent among different Categories (Mar 2020)

WeChat Mini Program

Meanwhile, WeChat Mini Program has put a lot of emphasis. During the end of 2019 to March 2020, there is an increase of 500 mini programs. These 500 are all scoring more than 1M MAU. Besides, it records with a growth rate of 44%, of which 35.5% were games. 29.7% of the 317 WeChat Mini Programs with more than 5 million MAU was the gaming industry.

WeChat Mini Program (MAU>1M) and WeChat Mini Program (MAU >5M)
[Left] WeChat Mini Program (MAU>1M) and WeChat Mini Program (MAU >5M) [Right]
Industries Distribution (MAU >1M) and Industries Distribution (MAU >5M)
[Upper] Industries Distribution (MAU >1M) and Industries Distribution (MAU >5M) [Lower]

From the inter-city distribution of users, the sinking area (3-tier city and below) is the main incremental source of users. Also, the increase of the length of users is higher than that in the first and second tier cities.

MAU (Different Tiers of Cities) and Time Spent per Person (Monthly)
MAU (Different Tiers of Cities) and Time Spent per Person (Monthly)

At the age level, users under 24 years of age and over 40 have a more significant increase. Moreover, users aged 25 – 40 have a higher growth rate than under 24 or over 40 in the length of usage per month.

MAU of Different Ages and Time Spent per Person (Monthly)
[Left] MAU of Different Ages and Time Spent per Person (Monthly) [Right]

2. MAU of Kuaishou and Bilibili increased by >30% year on year

As you may know, Douyin, Kuaishou, Bilibili have developed deep construction of content layers and experience. They have achieved a tremendous growth of user size and using time. Furthermore, commercial value is also increasing.

Learn more: Business Model of Video Apps in China

Business Model
Business Model

Douyin’s MAU reached 518 million in March 2020, 14.7% year on year. The average monthly usage time is 1,709 minutes, year-on-year growth of 72.5%.

Kuaishou’s MAU reached 443 million, up 35.4% year on year with an average monthly usage time of 1,205 minutes, year-on-year growth of 64.7%.

Bilibili’s MAU reached 121 million, year-on-year growth of 32%. The average monthly usage time is 978 minutes, 41.5% year-on-year increase.

Efficiency among Different Platforms ( Mar 2020)
Efficiency among Different Platforms ( Mar 2020)

Quality content is the key to build the links between products and users. Among which, Douyin and Kuaishou have achieved rapid growth. On the other side, Bilibili, with the help of the Chinese New Year party and quality content video also getting up in the league.

DAU Comparison among the Platforms
DAU Comparison among the Platforms

3. The size of Q1 China Mobile Internet advertising market fell 19.9% year on year in 2020

The report shows that Q4 Internet advertising market has reached 136.51 billion yuan in 2019. However, in 2020 Q1 the Internet advertising market resulted only 88.99 billion, a drop of 19.9% from the same period of last year.

Internet Advertising Incomes (Q1 2008 - Q1 2020)
Internet Advertising Incomes (Q1 2008 – Q1 2020)

Meanwhile, the short video platform represented by Douyin and Kuaishou in 2019 realized the cash-in quickly. In addition, the short video information flow advertising revenue was higher than online videos in Q1 2020. It reaches a revenue scale of 8.125 billion yuan.

Internet Advertising Incomes Video Industries (Q1 2018 - Q1 2020)
Internet Advertising Incomes Video Industries (Q1 2018 – Q1 2020)

At the same time, Key Account (KA) advertising cost distribution among Baidu’s Baiqingteng, Ocean Engine and Tencent Ads are studied. Among them, the Ocean Engine continues to be in the dominant position. On the other hand, Baidu Baiqingteng in January 2020 surpasses Tencent Ads.

Percentage of Advertising Expenditure (KA) (Jan 2019 - Mar 2020)
Percentage of Advertising Expenditure (KA) (Jan 2019 – Mar 2020)

4. More than 70% of users are from the sinking areas (3-tier city and below)  

The number of users in March 2020 was 518 million. There is an increase of 14.6% over the same period last year. Additionally, the monthly per capita usage time was 28.5 hours. It records an increase of 72.7% over the same period last year.

Douyin Short Video (MAU) and Time Spent per Person (Monthly)
[Left] Douyin Short Video (MAU) and Time Spent per Person (Monthly) [Right]

In terms of user portraits, 57% of them are female users; 70.5% are users from the third to fifth cities. More than 90% of the users consume less than 1,000 yuan on average.

New User (installation) of Douyin
New User (installation) of Douyin
Sex [Top Left], Age [Top Right], City Distribution [Bottom Left], Online Purchasing Power [Bottom Right]

In addition, with the continuous maturity of Douyin operation, overall operation efficiency is constantly improving. For newly installed users, the number slightly dropped compared to the same period in previous years. Yet, there are still 37.62 million new users, with active rate increased by 7% from a year earlier.

Increase of Douyin in User Registration and MAU
Increase of Douyin in User Registration and MAU

Summary

The year of 2019 and 2020 has been unexpected. Undoubtedly, the pandemic has brought a strong push to the online market. To get into the China market, business owners should not under-estimate the costs of entry.

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