WeChat Key Trends Presentation

WeChat Key Trends Presentation

A keynote speech delivered at the China Connect conference in Paris, France on March 2nd 2017 by Matthew Brennan

874b0bc43bcfbd091ee60196b1f873b6?s=128

Matthew Brennan

April 21, 2018
Tweet

Transcript

  1. 8 KEY TRENDS FOR WECHAT DELIVERED BY MATTHEW BRENNAN

  2. MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A WELL-KNOWN

    SPEAKER AND WRITER WHO FOCUSES ON WECHAT, CHINA’S FAMOUS SUPER APP, AND TENCENT, CHINA’S LARGEST TECH GIANT. HIS OPINIONS ARE REGULARLY FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC, THE FINANCIAL TIMES, FORBES, QUARTZ, TECHCRUNCH, TECHINASIA, CNN, CAMPAIGN ASIA, EMARKETER, ADAGE. HE REGULARLY DELIVERS PRESENTATIONS FOR EXECUTIVE TEAMS SEEKING TO GAIN INSIGHT INTO CHINESE TECH INNOVATION. 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.
  3. “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
  4. USER NUMBERS & ENGAGMENT HITTING THE BAMBOO CEILING? CHINACHANNEL.CO

  5. WeChat Open Class PRO Edition Dec 2016 Guangzhou CHINACHANNEL.CO MOST

    INTERESTING STATISTIC FROM WECHAT’S LAST DATA REPORT WAS…
  6. “ONLY 1% OF WECHAT USERS ARE ABOVE THE AGE OF

    55.” STEPHEN WANG WECHAT TEAM: DIRECTOR USER GROWTH AND ENGAGEMENT CHINACHANNEL.CO
  7. PREVIOUSLY CHCH SURVEYED 100’S OF PEOPLE IN RURAL TOWNS IN

    CENTRAL CHINA ABOUT HOW THEY USE WECHAT.
  8. MOST SENIORS WE SPOKE TO USED PHONES THAT COULDN’T RUN

    WECHAT.
  9. 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
  10. Data Source: Tencent CHINACHANNEL.CO 194 236 272 355 396 438

    468 500 549 600 650 697 762 806 846 889 937 825 819 816 808 848 829 820 815 832 843 860 853 877 899 877 868 860 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 WECHAT VS. QQ MONTHLY ACTIVE USERS
  11. 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
  12. Graphic Source: ARK Invest (2017 Jan) CHINACHANNEL.CO PRETTY MUCH EVERYTHING

    THAT’S GOING UP ON THIS CHART IS OWNED BY FACEBOOK…
  13. 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
  14. SOURCE: WECHAT TEAM TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT

    USER CHINACHANNEL.CO
  15. 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
  16. 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
  17. BOTTOM LINE • USER NUMBERS WILL TOP OUT • EXPECT

    WIDE NEGATIVE MEDIA COVERAGE • SENIORS ARE KEY (ONLY) AVENUE FOR GROWTH CHINACHANNEL.CO
  18. WECHAT PAID ADVERTISING OPTIONS FACEBOOK ADS FOR CHINA? CHINACHANNEL.CO

  19. VALUE ADDED SERVICES ONLINE ADVERTISING OTHERS: PRIMARILY PAYMENTS & CLOUD

    70% 15% 15% TENCENT 2017 Q1 EARNINGS REPORT CHINACHANNEL.CO
  20. 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
  21. “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
  22. NEW FORMATS MOMENTS ADS: FULL SCREEN & INTERACTIVE CHINACHANNEL.CO

  23. AD > MEMBER CARDS > COUPONS CHINACHANNEL.CO

  24. CHINACHANNEL.CO “GIFTING FEATURE WILL GRADUALLY BE OPENED TO OTHER QUALIFIED

    RETAILERS IN THE FUTURE” - WECHAT TEAM
  25. CHINACHANNEL.CO MOMENTS LOCAL ADS LAUNCHED NOV ‘16

  26. 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
  27. 2016: WECHAT BANNED INCENTIVIZED SHARING 2017: H5 CAMPAIGNS ARE DEAD

    NOW RIGHT? CHINACHANNEL.CO
  28. STORY TELLING & CREATIVE MUCH MORE IMPORTANT CHINACHANNEL.CO

  29. "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
  30. 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
  31. WECHAT PAY THE 1ST UNIMAGINABLE TREND CHINACHANNEL.CO

  32. 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
  33. WECHAT USERS MAKING E-COMMERCE PURCHASES THROUGH WECHAT 15% 31% 2015

    2016 Data: McKinsey’s 2016 China Digital Consumer Survey Report CHINACHANNEL.CO
  34. 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
  35. 2015… Data Source: iResearch Inc. Q3 2015 19.2% 69.9% 8.7%

    LAKALA 2.2% TENPAY OTHERS ALIPAY CHINACHANNEL.CO
  36. Data Source: Analysys Ltd. Q3 2016 38.1% 50.4% 8.1% LAKALA

    3.3% TENPAY OTHERS ALIPAY 2016… CHINACHANNEL.CO
  37. 2017? COULD THIS BE THE YEAR WECHAT PAY DRAWS EVEN

    IN MARKET SHARE WITH ALIPAY? CHINACHANNEL.CO
  38. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 WECHAT

    PAY REVENUE IS REPORTED UNDER ‘OTHER REVENUE’ IN TENCENT FINANCIAL STATEMENTS LUCKY MONEY IS FIRST LAUNCHED MILLIONS CNY CHINACHANNEL.CO
  39. LUCKY MONEY WAS THE KEY… THE PEARL HARBOR ATTACK

  40. “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
  41. None
  42. 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
  43. CHINACHANNEL.CO FRIEND’S CIRCLE VR RED PACKETS RIGHT HERE ALIPAY KEEPS

    ROLLING OUT NEW SOCIAL FEATURES…
  44. ??? CHINACHANNEL.CO

  45. 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
  46. 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
  47. CHANGE IN STAFF AT CHINA’S BIG 4 STATE OWNED BANKS

    CHINACHANNEL.CO SOURCE: COMPANY FILINGS ICBC LTD, CCB CORP., ABC LTD & BOC LTD. -30 -20 -10 0 10 20 30 40 50 60 70 THOUSANDS 2016 2015 2014 2013 2012 2011
  48. 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
  49. INTERNATIONAL STRATEGY TARGETING CHINESE TOURISTS CHINACHANNEL.CO

  50. 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.
  51. GREAT NEWS FOR EUROPE

  52. 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
  53. CHINACHANNEL.CO EXAMPLE THIS ACCOUNT IS VISIBLE IN CHINA!

  54. 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…
  55. CHINACHANNEL.CO WECHAT PAY SIGNS STARTING TO POP UP GLOBALLY WHEREVER

    THERE ARE CHINESE TOURISTS Picture: 7Eleven Bangkok
  56. TENPAY (WECHAT PAY + QQ WALLET) TEAM IN TALKS WITH

    STRIPE JANUARY 2017 CHINACHANNEL.CO
  57. 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
  58. COMPETITION MORE NOISE? CHINACHANNEL.CO

  59. “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
  60. 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
  61. AVERAGE VIEWS ON WECHAT SUBSCRIPTION ACCOUNTS FELL FROM 12% IN

    EARLY 2016 TO ROUGHLY 5% IN JAN 2017 Source: WeiHudong CHINACHANNEL.CO
  62. 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
  63. 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
  64. “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
  65. 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
  66. 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
  67. 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
  68. MINI PROGRAMS THE TROUGH OF DISILLUSIONMENT CHINACHANNEL.CO

  69. MOST MARKETERS CURRENTLY ARE UNABLE TO SEE VALUE IN MINI

    PROGRAMS CHINACHANNEL.CO
  70. “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
  71. MARKETERS IN CHINA TREAT WECHAT LIKE EMAIL. YOUR WECHAT TIMELINE

    IS YOUR EMAIL INBOX FOR CHINA. CHINACHANNEL.CO
  72. “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
  73. BUT MINI PROGRAMS CAN’T BE USED THIS WAY CHINACHANNEL.CO

  74. MOBIKE POINTS TO THE FUTURE OF HOW MINI PROGRAMS CAN

    ADD VALUE TO OFFLINE BUSINESSES
  75. CHINACHANNEL.CO WECHAT QR CODE SCANNER + MINI PROGRAM SIGNIFICANTLY REDUCES

    FRICTION FOR FIRST TIME USE MOBIKE MINI PROGRAM MOBIKE APP
  76. “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
  77. WHAT WAS THE BIGGEST EVENT OF 2016 IN MOBILE? CHINACHANNEL.CO

  78. None
  79. “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
  80. ALIPAY AUGMENTED REALITY LUCKY MONEY FEATURE QQ AUGMENTED REALITY LUCKY

    MONEY FEATURE BAIDU MAPS AUGMENTED REALITY CAMPAIGN CHINACHANNEL.CO
  81. Data: App Annie CHINACHANNEL.CO USUALLY MOBILE IS A ZERO SUM

    GAME POKEMON GO WAS DIFFERENT
  82. 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
  83. WECHAT IS USED TO SCAN QR CODES MORE THAN 80

    MILLION TIMES PER DAY CHINACHANNEL.CO
  84. “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.CO CHINACHANNEL.CO
  85. CONNECTING EVERYTHING & EVERYONE

  86. 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
  87. NEW FEATURES VIDEO + LIVESTREAM!? CHINACHANNEL.CO

  88. “WECHAT TEAM MAINTAIN A VERY RESTRAINED ATTITUDE WHEN DOING THINGS.”

    TONY ZHANG COFOUNDER & FORMER CTO OF TENCENT CHINACHANNEL.CO
  89. CHINACHANNEL.CO

  90. EXAMPLE 1 VIDEO NOW PLAYS DIRECT WITHIN WECHAT. (AS OF

    LATE 2016) EXAMPLE 2 MP3 MUSIC PLAYS DIRECT WITHIN WECHAT. CHINACHANNEL.CO
  91. EXAMPLE 3 PICTURE EDITING DIRECT WITHIN WECHAT. (AS OF DEC

    2016) EXAMPLE 4 VIDEO EDITING DIRECT WITHIN WECHAT. (AS OF DEC 2016) CHINACHANNEL.CO
  92. CHINACHANNEL.CO “THE MOBILE SHORT VIDEO SECTOR SAW EXPLOSIVE GROWTH IN

    2016.” TRACEY XIANG CHINA TECH INDUSTRY ANALYST
  93. LIVE STREAM SHORT VIDEO E-COMMERCE FEATURE PLATFORM OWNED BY CHINACHANNEL.CO

  94. CHINACHANNEL.CO Chart: TechInAsia WEIBO, THE CHINESE TWITTER, IS BIGGER THAN

    TWITTER?!
  95. “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
  96. RUMORS: WECHAT LIVE STREAM? ARGUMENT FOR: THE BUSINESS MODEL IS

    FANTASTIC ARGUMENT AGAINST: MISMATCH WITH WECHAT PRODUCT VALUES CHINACHANNEL.CO
  97. CORE SEARCH FRIEND’S NEWS FEED SEARCH GROUP CHAT SEARCH BY

    DATE SOCIALLY RANKED ARTICLE SEARCH CHINACHANNEL.CO IMPROVEMENTS TO WECHAT SEARCH IN 2016
  98. CHINACHANNEL.CO SEARCH RESULTS FROM OUTSIDE WECHAT NOW APPEARING

  99. BOTTOM LINE • SHORT VIDEO – PROBABLY YES • LIVESTREAM

    – PROBABLY NO • BETTER SEARCH – YES CHINACHANNEL.CO
  100. THE 2ND UNIMAGINABLE TREND CHINA’S PAYING FOR KNOWLEDGE?! CHINACHANNEL.CO

  101. TENCENT GLOBAL PARTNERS CONFERENCE

  102. “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
  103. 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
  104. “WAIT FOR WECHAT PAY TO READ FEATURE (TO ARRIVE).” CHINACHANNEL.CO

    PONY MA CEO AND FOUNDER OF TENCENT
  105. 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
  106. CASE STUDIES DIFFERENT REVENUE MODELS CHINACHANNEL.CO

  107. 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
  108. PAID Q&A: FENDA (ONE MINUTE ANSWER) • QUORA WITH AUDIO

    • MOBILE MICROPAYMENTS CHINACHANNEL.CO
  109. 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
  110. SUBSCRIPTION: OPEN LANGUAGE • PODCAST AUDIO CONTENT • EXERCISES, VOCABULARY,

    GRAMMAR EXPLANATIONS TO MATCH CHINACHANNEL.CO
  111. MATCHING SERVICE: YOLI • UBER FOR LEARNING ENGLISH • SHORT

    15 MIN CLASSES • LEVERAGE WECHAT GROUPS CHINACHANNEL.CO
  112. GATED COMMUNITY JASON NG 阿禅 • PRIVATE GROUP APP 小密圈

    • 200 RMB ENTRY (28 EUROS) • LIFETIME MEMBERSHIP CHINACHANNEL.CO
  113. CHINA IS CHANGING… CHINACHANNEL.CO

  114. CHINACHANNEL.CO

  115. MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A WELL-KNOWN

    SPEAKER AND WRITER WHO FOCUSES ON WECHAT, CHINA’S FAMOUS SUPER APP, AND TENCENT, CHINA’S LARGEST TECH GIANT. HIS OPINIONS ARE REGULARLY FEATURED IN GLOBAL MEDIA: THE ECONOMIST, BBC, THE FINANCIAL TIMES, FORBES, QUARTZ, TECHCRUNCH, TECHINASIA, CNN, CAMPAIGN ASIA, EMARKETER, ADAGE. HE REGULARLY DELIVERS PRESENTATIONS FOR EXECUTIVE TEAMS SEEKING TO GAIN INSIGHT INTO CHINESE TECH INNOVATION. 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.
  116. FIND ME AT: WEB: CHINACHANNEL.CO TWITTER: @MBRENNANCHINA ITUNES: CHINA TECH

    TALK PODCAST LINKEDIN: LINKEDIN.COM/IN/MATTHEW-BRENNAN/ WECHAT:
  117. 8 KEY TRENDS FOR WECHAT DELIVERED BY MATTHEW BRENNAN