According to the data in 2016Q4 Quarterly Monitoring Report on Markets of China's Socialized Media Advertising and Marketing, in 2016Q4, the market scale of China's socialized media advertising and marketing reached RMB 7.2 billion, with a quarter-on-quarter growth of 12.7%.
In the overall market, the market shares of Tencent and Weibo were respectively 56.7% and 28.0%. And both platforms totally took up over 80% of the market share in China's socialized media advertising and marketing market. They both held a safe lead compared with other companies and took the leading positions in the market. Momo was in hot pursuit and achieved continuous growth on user scale and adhesiveness through live video business. The launching of video information stream advertising also further expanded Momo's advertisement marketing in future. The marketing values of vertical socialized media platforms such as Babytree and Mama were remarkably highlighted in the year-end e-business boom season.
According to Analysys's analysis, the following points should be highlighted in China's socialized media market in 2016Q4.
I. The process of rich media-oriented development of the contents of socialized medial platforms was increasingly intensive.
In September 2016, Tencent's QQ team announced the launching of "EQ Program", which planned to invest resources valuing RMB 1 billion within 3 years to support 1,000 content partners; in October 2016,voice social App Peiwo launched the function of "Live Video with Me" and Momo launched video information stream advertising; in November 2016, Weibo canceled the post length limit of 140 Chinese characters to all users, and Instagram launched the function of live video; in December 2016, WeChat extended the maximum length of short videos shared in Circle of Friends from 6 seconds to 10 seconds, Tianya.cn launched its self-media product Tianyahao, and photo-based community Duitang.com obtained the new round of financing and estimated that the video volume of the platform would exceed 15,000 pieces by fund and resource input in the following year to come.
According to Analysys's analysis, the China's socialized media, which was growing mature gradually, was playing an extremely important role in traffic distribution and content distribution. The acceleration of rich media-oriented process, in which photos and texts were prevailing previously and the proportion of video traffics was more and more increased presently, bore direct correlation with the continuous lowering of content consumption costs and the upgrading of content consumption demands of the users. Meanwhile, for individual socialized media platform, in such a fragmented era, the puzzle of how to realize more user attention, higher activeness and longer stay time should be solved by gathering more and higher quality content providers. In 2016Q4, more and more socialized media platforms exerted their own platform superiorities and accelerated the enrichment and consummation of content forms and user interaction methods of the platform by means of adjustment of orientation, upgrading of functions and consummation of commercial modes. Such efforts were made to attract more and more content providers mainly on video contents (and more and more users accordingly) and further enhance the core competitive edges of the platform. On the other hand, the rich media-oriented process of socialized media platform also positively influenced the increase of high quality advertisement inventory, which of important significance for the market value maximization of the brands as well as higher order conversion effectiveness for advertisers.
II. The content-oriented commercial modes tended to be diversified
In the end of September 2016, Zhihu announced the launching of "Zhihu Bookstore", through which users could directly purchase, download and read Zhihu's e-books. This realized the unique closed loop on reading and discussion consisting of purchasing, reading, transmission and extended discussion; in October 2016, Weibo announced that the total revenue of self-media authors through Weibo in 2016 was RMB 11.7 billion; in December 2016, Weibo launched paid QA service, which became one of the important tools for Weibo to enable self-media authors, and the process of cashability of Weibo's self-media authors was accelerated; also in December 2016, many voices were heard related to paid services of subscription on WeChat under Tencent, which was attached great importance.
According to Analysys's analysis, by the end of 2016, the concept of "paid contents" has become a common trend. It is just a matter of time for paid content services on social platforms under the background of consumption upgrading and paid contents. Presently, the commercial logic of paid contents has been verified in multiple fields and on multiple platforms. The concept of "paid contents" has been generalized. And young consumption population with interests and experiences as value pursuit have gradually become the mainstream. The directions and modes of social platforms to integrate paid contents has become the key to competition. In addition, in 2016Q4, content-based start-ups were more active. Start-ups based on socialized media will also bring vitality to paid content services of social platforms. Facing the wide area of multidimensional markets and huge user groups of socialize media, content start-up and paid content would probably spurt brilliant sparks, leading to diversified content-based commercial modes of social media.
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Industrial analysis provided by Analysys is made mainly based on macroeconomic industrial data, final quarterly user survey data, historical data of the companies, quarterly business monitoring information of companies, etc. by Analysys's industrial analysis models with reference to market research, industrial research and company research approaches. And such analysis mainly reflects the market status quo, trends, break points and rules as well as the development status quo of companies.
Analysys believes that the data drawn according to the abovementioned industrial research approaches is within the recognized acceptable error range within the industry and can accurately reflect the industrial trends and change rules.
Such research outcomes made based on professional research approaches aim to provide decision reference. For the actual data of a specific company, please refer to the financial reports released by that company.
Analysys is a leading big data analysis company in the Chinese market. Since the establishment, Analysys has established the big data and analysis service ecological system cored by massive digital user assets and algorithm models. Analysys has been dedicated in providing product services such as digital user portraits and competition analysis and assisting in product operation for enterprises; and assisting enterprises in increasing revenues, saving expenditures, increasing effectiveness and evading risks by operation and management on digital user assets of the enterprises. The products in Analysys Family include Analysys Qianfan, Analysys Fangzhou, Analysys Wanxiang and Analysys Boyue. By December 31, 2016, Analysys had covered 1.51 billion intelligent terminals and monitored over 1.56 million mobile APPs.