Shulou(Shulou.com)12/24 Report--

On December 19, the third-party data organization QuestMobile released the Annual report on Core Trends of the Internet in China (2023), which makes a comprehensive analysis of the future development trend of the Internet with data and cases.

The report summarizes several major trends in the technology industry in 2023: the growth rate of the Internet advertising market is bottoming out and rebounding; generative AI is becoming a new competitive place based on automation and intelligence; more pan-intelligent devices provide new traffic portals for Internet applications; and the high consumption potential of users in third-tier cities and below has become a new trend of brand growth. New media channels with higher content extensibility and user interaction have been paid more and more attention by advertisers.

The Nuggets new line market is looking for increment quickly.

According to the QuestMobile report, the number of mobile Internet users in China has reached 1.224 billion, and the monthly contact time of users is stable at about 160hrs. The in-depth development of the value of traffic promotes the process of Internet commercialization and supports the huge potential of digital commerce.

In 2023, with the full recovery of catering, entertainment, tourism and other industries, more brand companies choose to enter new channels such as short videos and live broadcasts. Digging up the value of people in third-to fifth-tier cities has become a new trend of brand growth.

In recent years, users in third-tier and below cities have shown high consumption potential. Data from QuestMobile show that in September 2023, first-tier cities accounted for only 1.7% of the growth of online users with high willingness to spend, second-tier cities accounted for 29.1%, and third-tier and lower cities accounted for 44.2%.

Kuaishou has become one of the core platforms to undertake this trend. According to QuestMobile, Kuaishou's share of users in first-tier and new first-tier cities is growing, reaching nearly 20 per cent. In comparison, the third-line and below new-line urban population is still Kuaishou's unique advantage of user groups, accounting for more than 60%.

At the same time, the marketing tools, multiple scenarios, crowd assets and the impact of consumption decisions on young people provided by the platform side promote brand enterprises to increase investment in platforms such as Kuaishou, and move from volume traffic to volume content.

Take Kuaishou as an example, relying on the advantages of user groups in third-tier and below cities, it has launched mentality and strategies such as "big brands, big subsidies" and "good goods at low prices" to guide e-commerce operations, and GMV has maintained a high growth rate after exceeding one trillion yuan.

Various platforms have also further optimized advertising tools and subsidy strategies, and launched "Magnetic Ark", "Sichuan flow Plan" and other enabling brands to grow, helping to tap the consumption potential of the new line market. In September 2023, Douyin ranked first and Kuaishou second in TOP10 media in terms of Internet advertising revenue in China, but grew the fastest, according to QuestMobile.

The supply and demand of short plays are booming, and they are going to be evenly split.

The QuestMobile report believes that the growth rate of the Internet advertising market is bottoming out and forecasts that China's Internet advertising market will grow by 7.6% year-on-year to 714.6 billion yuan in 2023, with mobile Internet advertising accounting for 88.9%. It is predicted that the Internet advertising market will grow by 10.3% in 2024 compared with the same period last year.

After the advertising market bottomed out and rebounded, brand marketing strategy showed a new trend: new media channels with higher content extensibility and user interaction were paid more and more attention by advertisers, and advertising revenue from Kuaishou, Weibo and Little Red Book increased year on year. Kuaishou has the fastest growth rate.

What attracts attention is that short dramas characterized by "short and fast" have quickly entered the public's field of vision and cut into people's fragmented time, and both ends of supply and demand have shown strong growth, becoming a new option for content rookies and brand marketing. brand naming, brand implantation, brand customization and so on have greatly broadened the commercial realization space of short plays.

In the field of short play content and marketing, the two platforms occupy the main market and each has its own advantages. According to QuestMobile, Douyin skits posted a 3 per cent year-on-year growth in September 2023, while Kuaishou skits accumulated more, leading the industry in interaction and user penetration, up 6.2 per cent and 14.6 per cent respectively from a year earlier.

The short drama has attracted many brands to increase their marketing investment. Data show that in the summer of 2023, Kuaishou launched a total of 85 star-mans skits, with a total of 21 skits with more than 100 million broadcasts. The investment revenue of star-mans skits increased by more than 10 times in the third quarter compared with the previous quarter. JD.com, Tate, Meituan, OPPO and others have embraced Kuaishou skits.

Platform ecological diversity, from flow field to commercial complex

On December 19, QuestMobile's Annual report on Core Trends of the Internet in China (2023) was released, along with a number of innovation awards. Based on a variety of business models derived from e-commerce, advertising, local life and other fields, Kuaishou won the 2023 China Internet Innovation Vanguard Award and Digital Marketing Award respectively.

According to the report, the comprehensive community represented by Kuaishou, relying on efficient content media such as short video and live broadcast, has derived a variety of business models while accumulating traffic, from a pure flow field to a commercial complex.

Taking Kuaishou as an example, on the basis of the close coordination of business ecology, content ecology and the continuous upgrading of business infrastructure, we are increasing investment in local life, real estate, automobile, recruitment and other vertical fields, and introducing all aspects of the industrial chain. to form a more efficient industry ecology.

Specific to the automotive industry, Kuaishou continues to improve automobile KOL activity and user penetration at the same time, the introduction of brands and 4S store system to create matrix numbers, and launched the platform tool "car exploration"-through car crowd identification + systematic content to achieve accurate access to users.

According to the QuestMobile report, the value-added services on both sides of the platform are becoming more in-depth and mature, and will pay more attention to the changes on the demand side, and constantly optimize business strategies to form more meta-business layouts by capturing changes in users' interests and consumer preferences.

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