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WeChat Key Trends Report 2017

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120 Slides Of The Latest Data & Case Studies On WeChat & WeChat Marketing. From Keynote Presentation at China Connect in Paris (March 2017).

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WeChat Key Trends Report 2017

  1. 1. 8 KEY TRENDS FOR WECHAT IN 2017 MATTHEW BRENNAN CHINACHANNEL.CO
  2. 2. MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF WECHAT AND CHINA’S MOBILE ECOSYSTEM. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING. MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES. EMAIL: MATTBRENNAN@CHINACHANNEL.CO LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN THIS PRESENTATION IS ADAPTED FROM A KEYNOTE SPEECH DELIVERED AT CHINA CONNECT CONFERENCE IN PARIS ON MARCH 2ND 2017 BY
  3. 3. ??? IS WECHAT STILL COOL? I HEARD EVERYONE IN CHINA IS USING WEIBO AGAIN. CHINACHANNEL.CO
  4. 4. CHINACHANNEL.CO
  5. 5. CHINACHANNEL.CO
  6. 6. THESE ARE JUST SOME OF THE SILLY THINGS WE CAN EXPECT MEDIA TO START SAYING ABOUT WECHAT IN THE NEXT 12 MONTHS. LET’S TAKE A LOOK AT WHAT IS REALLY GOING ON. CHINACHANNEL.CO
  7. 7. “一切以用户价值为依归,用户价值是第一位的” “EVERYTHING IS WITH USER VALUE IN MIND. THE VALUE TO THE USER IS THE FIRST PRIORITY.” CHINACHANNEL.CO
  8. 8. CHINACHANNEL.CO IN THE SAME WAY THAT AMAZON IS RELIGIOUS ABOUT THEIR CUSTOMER EXPERIENCE. TENCENT IS RELIGIOUS ABOUT THEIR USER EXPERIENCE.
  9. 9. USER NUMBERS & ENGAGMENT HITTING THE BAMBOO CEILING? CHINACHANNEL.CO
  10. 10. WeChat Open Class PRO Edition Dec 2016 Guangzhou CHINACHANNEL.CO MOST INTERESTING STATISTIC FROM WECHAT’S LAST DATA REPORT WAS…
  11. 11. “ONLY 1% OF WECHAT USERS ARE ABOVE THE AGE OF 55.” STEPHEN WANG WECHAT TEAM: DIRECTOR USER GROWTH AND ENGAGEMENT CHINACHANNEL.CO
  12. 12. DOESN’T EVERYONE IN CHINA USE WECHAT? CHINACHANNEL.CO
  13. 13. PREVIOUSLY CHCH SURVEYED 100’S OF PEOPLE IN RURAL TOWNS IN CENTRAL CHINA ABOUT HOW THEY USE WECHAT.
  14. 14. MOST SENIORS WE SPOKE TO USED PHONES THAT COULDN’T RUN WECHAT.
  15. 15. 590 618 630 649 668 688 710 460 500 530 557 594 620 656 235 355 438 500 600 697 806 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 CHINA INTERNET USERS CHINA MOBILE INTERNET USERS WECHAT USERS Data: China Internet Network Information Center (CNNIC)CHINA INTERNET USERS CHINACHANNEL.CO
  16. 16. Data Source: Tencent CHINACHANNEL.CO
  17. 17. LINE MONTHLY ACTIVE USERS. THE FUTURE OF WECHAT? Data Source: LINE Corp 140 120 180 160 220 200 CHINACHANNEL.CO LINE DOMINATES MESSAGING IN JAPAN
  18. 18. Graphic Source: ARK Invest (2017 Jan) CHINACHANNEL.CO PRETTY MUCH EVERYTHING THAT’S GOING UP ON THIS CHART IS OWNED BY FACEBOOK…
  19. 19. CHINA TOP 10 APPS JAN 2017 MONTHLY ACTIVE USERS (MILLIONS) *Data: Analysys.cn (mainland China users only) 767 580 355 283 244 241 233 231 220 215 CHINACHANNEL.CO
  20. 20. SOURCE: WECHAT TEAM TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT USER CHINACHANNEL.CO
  21. 21. TIME SPENT ON MOBILE IN CHINA Data Source: QuestMobile, TrustData and Hillhouse Estimates 45% 35% 10% EVERYTHING ELSE 10% TENCENT OTHER TENCENT OWNS 55% OF ALL TIME ON MOBILE IN CHINA CHINACHANNEL.CO
  22. 22. Data Source: QuestMobile TOTAL TIME SPENT ON MOBILE IN CHINA VS. TIME SPENT ON WECHAT 1,000 26.5% TOTAL MOBILE TIME SPENT WECHAT TIME AS % OF ALL TIME ON MOBILE IN CHINA 26.7% 29.4% 31.5% 31.9% 36.3% 35.5% 34.5% 34.1% 35.2% 33.7% 32.8% 35.2% SEPT 15 OCT 15 NOV 15 DEC 15 JAN 16 FEB 16 MAR 16 APR 16 MAY 16 JUNE 16 JUL 16 AUG 16 SEPT 16 2,000 3,000 4,000 5,000 BILLION MINUTES TIME SPENT IN WECHAT 40% 35% 30% 25% 20% 15% 10% 5% CHINACHANNEL.CO
  23. 23. BOTTOM LINE • USER NUMBERS WILL TOP OUT • EXPECT WIDE NEGATIVE MEDIA COVERAGE • SENIORS ARE KEY (ONLY) AVENUE FOR GROWTH CHINACHANNEL.CO
  24. 24. WECHAT PAID ADVERTISING OPTIONS FACEBOOK ADS FOR CHINA? CHINACHANNEL.CO
  25. 25. VALUE ADDED SERVICES ONLINE ADVERTISING OTHERS: PRIMARILY PAYMENTS & CLOUD 69% 19% 12% TENCENT 2016 Q3 EARNINGS REPORT CHINACHANNEL.CO
  26. 26. ESTIMATED NUMBER OF NEWSFEED AD IMPRESSIONS PER DAY PLATFORM Q1 2016 Q2 2016 Q3 2016 WECHAT MOMENTS 0.2 0.3 0.4 FACEBOOK GLOBAL 8.8 9.3 10.6 FACEBOOK US & CANADA 20.6 23.2 25.6 FACEBOOK ASIA 9.0 9.2 12.4 Data Source: Daiwai Capital Markets CHINACHANNEL.CO
  27. 27. “THE NUMBER OF ADVERTISERS (USING WECHAT MOMENTS ADS) INCREASED OVER 100% IN THE LAST QUARTER.” JAMES MITCHELL CHIEF STRATEGY OFFICER, SENIOR EXECUTIVE VP, TENCENT CHINACHANNEL.CO
  28. 28. NEW FORMATS MOMENTS ADS: FULL SCREEN & INTERACTIVE CHINACHANNEL.CO
  29. 29. AD > MEMBER CARDS > COUPONS CHINACHANNEL.CO
  30. 30. CHINACHANNEL.CO “GIFTING FEATURE WILL GRADUALLY BE OPENED TO OTHER QUALIFIED RETAILERS IN THE FUTURE” - WECHAT TEAM
  31. 31. CHINACHANNEL.CO MOMENTS LOCAL ADS LAUNCHED NOV ‘16
  32. 32. FIXED PRICE PPM (PAY PER 1,000 IMPRESSIONS) STARTING FROM 300 RMB (42 EURO) UP TO 10 DAY CAMPAIGN 4,400 BUSINESS DISTRICTS IN 81 CITIES AREA PPM SHANGHAI / BEIJING 150 RMB (21 EURO) LARGE CITIES (22 IN TOTAL) 100 RMB (14 EURO) ALL OTHER DISTRICTS 50 RMB (7 EURO) CHINACHANNEL.CO MOMENTS ADS FOR SMALL BUSINESSES
  33. 33. 2016: WECHAT BANNED INCENTIVIZED SHARING 2017: H5 CAMPAIGNS ARE DEAD NOW RIGHT? CHINACHANNEL.CO
  34. 34. STORY TELLING & CREATIVE MUCH MORE IMPORTANT CHINACHANNEL.CO
  35. 35. "THE RULES ARE SIMPLE: WRITE GREAT CONTENT, CAPTIVATING STORIES, AND DON'T FOCUS ON SHOVING YOUR PRODUCTS DOWN THE USERS' THROAT." THOMAS GRAZIANI COFOUNDER, WALKTHECHAT CHINACHANNEL.CO
  36. 36. BOTTOM LINE • EXPECT BETTER TARGETING AND MORE FORMAT OPTIONS • MORE SME FRIENDLY OPTIONS • FOLLOW DEVELOPMENTS CLOSELY, FIRST MOVERS ON NEW FORMATS USUALLY HAVE BIG ADVANTAGE CHINACHANNEL.CO
  37. 37. WECHAT PAY THE 1ST UNIMAGINABLE TREND CHINACHANNEL.CO
  38. 38. 2015 2016 2017 2018 2019 CHINA USA 3RD PARTY MOBILE PAYMENTS ($TN) 14 12 10 8 6 4 2 0 Data Source: Forrester Research (US), iResearch (China) CHINACHANNEL.CO
  39. 39. WECHAT USERS MAKING E-COMMERCE PURCHASES THROUGH WECHAT 15% 31% 2015 2016 Data: McKinsey’s 2016 China Digital Consumer Survey Report CHINACHANNEL.CO
  40. 40. CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2014 Data Source: iResearch Q3 2014 10.0% 82.6% 4.4% TENPAY 3% OTHERS ALIPAY LAKALA CHINACHANNEL.CO
  41. 41. 2015… Data Source: iResearch Inc. Q3 2015 19.2% 69.9% 8.7% LAKALA 2.2% TENPAY OTHERS ALIPAY CHINACHANNEL.CO
  42. 42. Data Source: Analysys Ltd. Q3 2016 38.1% 50.4% 8.1% LAKALA 3.3% TENPAY OTHERS ALIPAY 2016… CHINACHANNEL.CO
  43. 43. 2017? COULD THIS BE THE YEAR WECHAT PAY DRAWS EVEN IN MARKET SHARE WITH ALIPAY? CHINACHANNEL.CO
  44. 44. WECHAT PAY REVENUE IS REPORTED UNDER ‘OTHER REVENUE’ IN TENCENT FINANCIAL STATEMENTS LUCKY MONEY IS FIRST LAUNCHED 0 1,000 2,000 3,000 4,000 5,000 6,000 MILLIONSCNY CHINACHANNEL.CO
  45. 45. LUCKY MONEY WAS THE KEY… THE PEARL HARBOR ATTACK
  46. 46. “IT WAS REALLY IMPRESSIVE! THIS YEAR’S PEARL HARBOR ATTACK WAS INDEED BEAUTIFULLY PLANNED AND EXECUTED.” JACK MA CHAIRMAN OF ALIBABA GROUP (DESCRIBING LUCKY MONEY) CHINACHANNEL.CO
  47. 47. WECHAT: A SOCIAL APP THAT HAS SUCCESSFULLY TRANSITIONED INTO A PAYMENTS PLATFORM. ALIPAY: A PAYMENTS PLATFORM THAT IS TRYING DESPERATELY TO BECOME A SOCIAL APP. CHINACHANNEL.CO
  48. 48. CHINACHANNEL.CO FRIEND’S CIRCLE VR RED PACKETS RIGHT HERE ALIPAY KEEPS ROLLING OUT NEW SOCIAL FEATURES…
  49. 49. ??? CHINACHANNEL.CO
  50. 50. Data Source: 36Kr Q1 2017 0% 22% 67% 11% PAYMENT METHODS IN CONVENIENCE STORES: BEIJING ZHONGGUANCUN CASH UNION PAY CREDIT+DEBIT CARDS APPLE PAY ALIPAY + WECHAT PAY QR CODE PAYMENTS CHINACHANNEL.CO
  51. 51. Data Source: 36Kr Q1 2017 67% 17% 16% SOLID UNDERSTANDING ONLY CASHIER UNDERSTANDS NO COMPREHENSION BEIJING ZHONGGUANCUN CONVENIENCE STORE STAFF UNDERSTANDING OF APPLE PAY CHINACHANNEL.CO
  52. 52. BOTTOM LINE • 2017 MAY SEE WECHAT PAY PULL EVEN WITH ALIPAY • ALIPAY WILL CONTINUE TO TRY AND REALISE THEIR DREAM OF UNLOCKING SOCIAL • APPLE PAY… ERRR, NO. CHINACHANNEL.CO
  53. 53. INTERNATIONAL STRATEGY TARGETING CHINESE TOURISTS CHINACHANNEL.CO
  54. 54. Image Credit: CCTV2 EVERY DOT ON THESE PICTURES IS AN ACTIVE WECHAT USER. WECHAT TEAM’S STRATEGY IN EUROPE IS NOT FOCUSED ON GETTING USERS. INSTEAD THEY WISH TO PROMOTE WECHAT AS A PAYMENTS AND MARKETING SOLUTION FOR BUSINESSES TO REACH CHINESE CONSUMERS.
  55. 55. GREAT NEWS FOR EUROPE
  56. 56. 20K EURO MARKETING BUDGET COMMITMENT 300 DOLLAR ANNUAL RENEWAL 6 WEEKS PROCESS OPEN TO ALL EUROPEAN BUSINESSES (EXCLUDING ‘SENSITIVE CATEGORIES’ MEDIA, POLITICAL ORGANIZATIONS) CHINACHANNEL.CO EUROPEAN BUSINESSES ARE NOW FREE TO OPEN CHINA VISIBLE OFFICIAL ACCOUNTS FOR CHINA MARKETING
  57. 57. CHINACHANNEL.CO EXAMPLE THIS ACCOUNT IS VISIBLE IN CHINA!
  58. 58. CHINACHANNEL.CO AND OWNERSHIP OF OFFICIAL ACCOUNTS CAN NOW BE TRANSFERRED. YOU ARE NO LONGER MARRIED TO YOUR CHINA AGENCY! ACCOUNT MIGRATION EXPECT ANOTHER IMPORTANT CHANGE SOON…
  59. 59. CHINACHANNEL.CO WECHAT PAY SIGNS STARTING TO POP UP GLOBALLY WHEREVER THERE ARE CHINESE TOURISTS Picture: 7Eleven Bangkok
  60. 60. TENPAY (WECHAT PAY + QQ WALLET) TEAM IN TALKS WITH STRIPE JANUARY 2017 CHINACHANNEL.CO
  61. 61. BOTTOM LINE • OPTIONS AND TARGETING FOR NON-CHINESE BUSINESSES WILL GET MUCH BETTER • EXPECT PLENTY OF WECHAT PAY DEALS WITH OTHER GLOBBAL PAYMENT SERVICES CHINACHANNEL.CO
  62. 62. COMPETITION MORE NOISE? CHINACHANNEL.CO
  63. 63. “WECHAT USED TO BE AN EASY WAY TO ACQUIRE USERS. IT’S NOW MUCH HARDER. THEY ARE OVERLOADED WITH GREAT CONTENT AND SPAM. WECHAT IS MATURING.” WILLIAM BAO BEAN CHINACCELERATOR MD, PARTNER @ SOSV CHINACHANNEL.CO
  64. 64. Data Source: iiMedia Research 2016 APP & WeChat Public Number Market Research Report NUMBER OF WECHAT OFFICIAL ACCOUNTS 2013 THRU 2017 (FORECAST) 14.1 12 8.2 6.8 1.4 2013 2014 2015 2016 2017E 16 12 8 4 0 20.3% 46.2% 17.3% 376.4% ACCOUNTS (MILLIONS) RATE OF CHANGE CHINACHANNEL.CO
  65. 65. AVERAGE VIEWS ON WECHAT SUBSCRIPTION ACCOUNTS FELL FROM 12% IN EARLY 2016 TO ROUGHLY 5% IN JAN 2017 Source: WeiHudongCHINACHANNEL.CO
  66. 66. KEEPING FOLLOWERS ENGAGED IS TOUGH Data Source: iiMedia Research 2016 APP & WeChat Public Number Market Research Report 60% 10% OFFICIAL ACCOUNTS THAT MANAGE TO CONTINUE REGULARLY UPDATING OFFICIAL ACCOUNTS THAT FOLLOWERS CONTINUE TO PAY ATTENTION TO IRREGULAR UPDATING CONTENT THAT FAILS TO STAND OUT CHINACHANNEL.CO
  67. 67. REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS ACCOUNTS ARE ALL THE SAME LOW AMOUNT OF CONTENT SENT LOW FREQUENCY OF UPDATING CONTENT CONTENT JUST ISN’T RELEVANT OTHER REASONS 50.1% 65.2% 57.9% 43.8% 25.4% Data Source: iiMedia Research 2016 APP & WeChat Public Number Market Research Report CHINACHANNEL.CO
  68. 68. “A NEW FOLLOWER ON WECHAT IS 100X MORE VALUABLE THAN ON WEIBO. FOOTBALL CLUBS SHOULD USE WECHAT AS THEIR CRM PLATFORM FOR CHINA.” DAVID HORNBY, MAILMAN GROUP SPORTS BUSINESS DIRECTOR CHINACHANNEL.CO
  69. 69. Data Source: Network Public Opinion Report, Tencent Index & CSSN WECHAT OFFICIAL ACCOUNTS POSTING TIMES: 9AM & 5PM PEAKS START WORK 9AM OFF WORK 5PM THE STATE OF WECHAT REPORT
  70. 70. WECHAT MOST ACTIVE TIMES FOR FORWARDING & SHARING Data Source: Network Public Opinion Report, Tencent Index & CSSN 8AM - MIDDAY 8 – 10 PM THE STATE OF WECHAT REPORT
  71. 71. BOTTOM LINE • COMPETITION FOR PAGE VIEWS WILL CONTINUE TO INCREASE AS WECHAT MATURES • A CORE VALUE OF WECHAT FOR BRANDS IS CRM & PERSONALIZED COMMUNICATION CHANNEL CHINACHANNEL.CO
  72. 72. MINI PROGRAMS THE TROUGH OF DISILLUSIONMENT CHINACHANNEL.CO
  73. 73. MOST MARKETERS CURRENTLY ARE UNABLE TO SEE VALUE IN MINI PROGRAMS CHINACHANNEL.CO
  74. 74. “THE ELEPHANT IN THE ROOM IS THAT OFFICIAL ACCOUNT’S BIGGEST VALUE ARE AS A BROADCAST CHANNEL.” DAN GROVER FORMER WECHAT TEAM, NOW FACEBOOK MESSENGER CHINACHANNEL.CO
  75. 75. MARKETERS IN CHINA TREAT WECHAT LIKE EMAIL. YOUR WECHAT TIMELINE IS YOUR EMAIL INBOX FOR CHINA. CHINACHANNEL.CO
  76. 76. “ACTUALLY WECHAT IS EMAIL. IT’S A SHORT FAST EMAIL, BUT BECAUSE IT’S SO FAST YOU DON’T THINK IT’S EMAIL.” PONY MA CEO AND FOUNDER OF TENCENT CHINACHANNEL.CO
  77. 77. BUT MINI PROGRAMS CAN’T BE USED THIS WAY CHINACHANNEL.CO
  78. 78. MOBIKE POINTS TO THE FUTURE OF HOW MINI PROGRAMS CAN ADD VALUE TO OFFLINE BUSINESSES
  79. 79. CHINACHANNEL.CO WECHAT QR CODE SCANNER + MINI PROGRAM SIGNIFICANTLY REDUCES FRICTION FOR FIRST TIME USE MOBIKE MINI PROGRAM MOBIKE APP
  80. 80. “THE NUMBER OF REGISTERED NEW USERS FROM MOBIKE’S WECHAT MINI PROGRAM ARE PRETTY MUCH THE SAME AS DIRECTLY FROM THEIR APP.” PONY MA CEO AND FOUNDER OF TENCENT CHINACHANNEL.CO
  81. 81. WHAT WAS THE BIGGEST EVENT OF 2016 IN MOBILE? CHINACHANNEL.CO
  82. 82. “POKEMON GO, IS PROBABLY THE BIGGEST THING THAT HAS HAPPENED TO THE APP ECONOMY, IF NOT JUST IN 2016, THEN IN THE ENTIRE LIFECYCLE OF THE APP ECONOMY. THE IMPACT OF IT WAS HUGE!” SAMEER SINGH, INDUSTRY ANALYSIS DIRECTOR APP ANNIE CHINACHANNEL.CO
  83. 83. ALIPAY AUGMENTED REALITY LUCKY MONEY FEATURE QQ AUGMENTED REALITY LUCKY MONEY FEATURE BAIDU MAPS AUGMENTED REALITY CAMPAIGN CHINACHANNEL.CO
  84. 84. Data: App AnnieCHINACHANNEL.CO USUALLY MOBILE IS A ZERO SUM GAME POKEMON GO WAS DIFFERENT
  85. 85. AVERAGE HRS CHINESE SPEND PER MONTH USING MOBILE APPS Data: QuestMobile (Oct 2016) 75.1 95.0 ALL CHINESE MOBILE USERS POST 90’S GENERATION = 2.42 HRS PER DAY = 3.06 HRS PER DAY CHINACHANNEL.CO
  86. 86. WECHAT IS USED TO SCAN QR CODES MORE THAN 80 MILLION TIMES PER DAY CHINACHANNEL.CO
  87. 87. “THE ENTRY POINT FOR DESKTOP INTERNET IS THE SEARCH BAR, THE ENTRY POINT FOR THE MOBILE INTERNET IS THE QR CODE.” WECHAT FOUNDER, ALLEN ZHANG MAY 2012 CHINACHANNEL.COCHINACHANNEL.CO
  88. 88. CONNECTING EVERYTHING & EVERYONE
  89. 89. BOTTOM LINE • OFFLINE SCENARIOS • FEW CASES OF PROVIDING A TRUE VALUE ADD TO BRANDS YET • WATCH FOR NEW FEATURES AND APIS TO OPEN UP CHINACHANNEL.CO
  90. 90. NEW FEATURES VIDEO + LIVESTREAM!? CHINACHANNEL.CO
  91. 91. “WECHAT TEAM MAINTAIN A VERY RESTRAINED ATTITUDE WHEN DOING THINGS.” TONY ZHANG COFOUNDER & FORMER CTO OF TENCENT CHINACHANNEL.CO
  92. 92. WECHAT OFFICIAL PARTNERS ECOSYSTEM CHINACHANNEL.CO
  93. 93. EXAMPLE 1 VIDEO NOW PLAYS DIRECT WITHIN WECHAT. (AS OF LATE 2016) EXAMPLE 2 MP3 MUSIC PLAYS DIRECT WITHIN WECHAT. CHINACHANNEL.CO
  94. 94. EXAMPLE 3 PICTURE EDITING DIRECT WITHIN WECHAT. (AS OF DEC 2016) EXAMPLE 4 VIDEO EDITING DIRECT WITHIN WECHAT. (AS OF DEC 2016) CHINACHANNEL.CO
  95. 95. CHINACHANNEL.CO “THE MOBILE SHORT VIDEO SECTOR SAW EXPLOSIVE GROWTH IN 2016.” TRACEY XIANG CHINA TECH INDUSTRY ANALYST
  96. 96. LIVE STREAM SHORT VIDEO E-COMMERCE FEATURE PLATFORM OWNED BY CHINACHANNEL.CO
  97. 97. CHINACHANNEL.CO Chart: TechInAsia WEIBO, THE CHINESE TWITTER, IS BIGGER THAN TWITTER?!
  98. 98. “SOONER OR LATER WE’LL SEE CHANGES THAT WILL MAKE IT EASIER FOR PUBLISHERS TO POST VIDEO DIRECT TO A PERSON’S (NEWS) FEED. THIS WILL BE A GAME CHANGER FOR BRANDS IN TERMS OF THE CREATIVE OPPORTUNITY.” JEREMY WEBB NATIONAL DIRECTOR, SOCIAL@OGILVY CHINA CHINACHANNEL.CO
  99. 99. RUMORS: WECHAT LIVE STREAM? ARGUMENT FOR: THE BUSINESS MODEL IS FANTASTIC ARGUMENT AGAINST: MISMATCH WITH WECHAT PRODUCT VALUES CHINACHANNEL.CO
  100. 100. CORE SEARCH FRIEND’S NEWS FEED SEARCH GROUP CHAT SEARCH BY DATE SOCIALLY RANKED ARTICLE SEARCH CHINACHANNEL.CO IMPROVEMENTS TO WECHAT SEARCH IN 2016
  101. 101. CHINACHANNEL.CO SEARCH RESULTS FROM OUTSIDE WECHAT NOW APPEARING
  102. 102. BOTTOM LINE • SHORT VIDEO – PROBABLY YES • LIVESTREAM – PROBABLY NO • BETTER SEARCH – YES CHINACHANNEL.CO
  103. 103. THE 2ND UNIMAGINABLE TREND CHINA’S PAYING FOR KNOWLEDGE?! CHINACHANNEL.CO
  104. 104. TENCENT GLOBAL PARTNERS CONFERENCE
  105. 105. “THE MOBILE MARKET IS SATURATED. WHEN ALL THE PRODUCTS ARE MATURE AND ALL SIMILAR, CONTENT IS THE WAY TO DIFFERENTIATE. THE VALUE OF KNOWLEDGE, THE VALUE OF CONTENT IS NOW INCREASING RAPIDLY IN THE INDUSTRY.” RHEA LIU – ANALYST AT TENCENT CHINACHANNEL.CO
  106. 106. 75.65% 51.73% 34.23% 20.70% 6.91% 0.76% WILLING TO PAY FOR QUALITY CONTENT QUALITY CONTENT PROVIDERS DESERVE PAYMENT WILLING TO PAY IF ONLINE LEARNING IS USEFUL ONLINE EDUCATION IS SUPPOSED TO BE NONPROFIT MORE WILLING TO PAY FOR OFFLINE COURSES WILLING TO LEARN BUT NOT NECESSARY TO PAY ATTITUDES TO PAYING FOR ONLINE LEARNING Data Source: Netease, Guokr, Jan 2017 CHINACHANNEL.CO
  107. 107. “WAIT FOR WECHAT PAY TO READ FEATURE (TO ARRIVE).” CHINACHANNEL.CO PONY MA CEO AND FOUNDER OF TENCENT
  108. 108. DRIVING FACTORS CHINESE CONSUMERS NOW HAVE HIGHER INCOME (TIME > MONEY) UBIQUITOUS MOBILE PAYMENTS & MICRO-PAYMENTS HUGE POPULATION: THINGS SCALE EASIER / NICHE COMMUNITIES BECOME INTERESTING CULTURE THAT PLACES VERY HIGH VALUE IN EDUCATION CHINACHANNEL.CO
  109. 109. CASE STUDIES DIFFERENT REVENUE MODELS CHINACHANNEL.CO
  110. 110. VOLUTARY DONATIONS (TIP JAR FEATURE) • USERS REWARD HIGH QUALITY CONTENT CREATORS • INDIVIDUAL PAYMENTS FROM 1 TO 200 RMB • USUALLY ONLY SUBSTANTIAL FOR LARGE KEY OPINION LEADERS CHINACHANNEL.CO
  111. 111. PAID Q&A: FENDA (ONE MINUTE ANSWER) • QUORA WITH AUDIO • MOBILE MICROPAYMENTS CHINACHANNEL.CO
  112. 112. 5,000 PEOPLE PAY 1 RMB TO LISTEN PLATFORM TAKES 10% CUT CELEBRITY ANSWERING RECEIVES 45% QUESTION ASKER RECEIVES 45% INITIAL COST TO ASK THE QUESTION QUESTION ASKER’S PROFIT 5,000 RMB -500 RMB 2,500 RMB 2,500 RMB -500 RMB 2,000 RMB CHINACHANNEL.CO BUSINESS MODEL MAKE MONEY ASKING QUESTIONS TO CELEBRITIES
  113. 113. SUBSCRIPTION: OPEN LANGUAGE • PODCAST AUDIO CONTENT • EXERCISES, VOCABULARY, GRAMMAR EXPLANATIONS TO MATCH CHINACHANNEL.CO
  114. 114. MATCHING SERVICE: YOLI • UBER FOR LEARNING ENGLISH • SHORT 15 MIN CLASSES • LEVERAGE WECHAT GROUPS CHINACHANNEL.CO
  115. 115. GATED COMMUNITY JASON NG 阿禅 • PRIVATE GROUP APP 小密圈 • 200 RMB ENTRY (28 EUROS) • LIFETIME MEMBERSHIP CHINACHANNEL.CO
  116. 116. CHINA IS CHANGING… CHINACHANNEL.CO
  117. 117. CHINACHANNEL.CO
  118. 118. MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF WECHAT AND CHINA’S MOBILE ECOSYSTEM. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING. MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES. EMAIL: MATTBRENNAN@CHINACHANNEL.CO LINKEDIN: HTTPS://CN.LINKEDIN.COM/IN/MATTHEW-BRENNAN THIS PRESENTATION IS ADAPTED FROM A KEYNOTE SPEECH DELIVERED AT CHINA CONNECT CONFERENCE IN PARIS ON MARCH 2ND 2017.
  119. 119. 8 KEY TRENDS FOR WECHAT IN 2017 MATTHEW BRENNAN CHINACHANNEL.CO

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