WeChat Key Trends Report 2017

China Channel Reports

Below are the slides from a keynote presentation delivered by Matthew Brennan at the China Connect Paris Conference on the 2nd of March 2017. He covers the key trends for WeChat and WeChat marketing featuring the latest data, case studies and quotes from respected experts. If you would like a PDF version of this report just drop us an email at info@chinachannel.co. If you are interested in hiring Matthew as a speaker drop him a line at mattbrennan@chinachannel.co.

 

WeChat Key Trends Report 2017

WeChat Key Trends Report 2017 Matthew Brennan China Channel

China Connect Paris WeChat Presentation

This presentation is adapted from a keynote speech delivered at China Connect conference in Paris on March 2nd 2017

Sluggish Growth For WeChat

Breaking News: Sluggish Growth For WeChat

Is WeChat still cool?

IS WECHAT STILL COOL?
I HEARD EVERYONE IN CHINA IS USING WEIBO AGAIN.

WeChat Marketing Is Dead

WeChat Marketing Is Dead

What's really going on?

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.

Allen Zhang Quote

“EVERYTHING IS WITH USER VALUE IN MIND. THE VALUE TO THE USER IS THE FIRST PRIORITY.”

Tencent Amazon

In the same way that Amazon is religious about their customer experience. Tencent is religious about their user experience.

WECHAT USER NUMBERS & ENGAGMENT

WECHAT USER NUMBERS & ENGAGMENT

MOST INTERESTING STATISTIC FROM WECHAT’S LAST DATA REPORT WAS…

MOST INTERESTING STATISTIC FROM WECHAT’S LAST DATA REPORT WAS…

Stephen Wang WeChat Quote

“only 1% of wechat users are above the age of 55.”

DOESN’T EVERYONE IN CHINA USE WECHAT?

DOESN’T EVERYONE IN CHINA USE WECHAT?

Rural Town WeChat Survey

Previously ChCh surveyed 100’s of people in rural towns in central China about how they use WeChat.

Seniors China Phones

MOST SENIORS WE SPOKE TO USED PHONES THAT COULDN’T RUN WECHAT.

CHINA INTERNET USERS

CHINA INTERNET USERS Vs. WeChat Users

WeChat MAU Vs. QQ MAU

WeChat MAU Vs. QQ MAU

LINE MAU Vs. WeChat MAU

LINE MONTHLY ACTIVE USERS. THE FUTURE OF WECHAT?

Global Social Messaging & Social Apps

PRETTY MUCH EVERYTHING THAT’S GOING UP ON THIS CHART IS OWNED BY FACEBOOK…

CHINA TOP 10 APPS JAN 2017 MONTHLY ACTIVE USERS (MILLIONS)

CHINA TOP 10 APPS JAN 2017 MONTHLY ACTIVE USERS (MILLIONS)

TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT USER

TYPICAL DAILY SCHEDULE FOR AN ENGAGED WECHAT USER

TIME SPENT ON MOBILE IN CHINA

TIME SPENT ON MOBILE IN CHINA

TOTAL TIME SPENT ON MOBILE IN CHINA VS. TIME SPENT ON WECHAT

TOTAL TIME SPENT ON MOBILE IN CHINA VS. TIME SPENT ON WECHAT

Bottom Line 1

USER NUMBERS WILL TOP OUT. EXPECT WIDE NEGATIVE MEDIA COVERAGE. SENIORS ARE KEY (ONLY) AVENUE FOR GROWTH

WECHAT PAID ADVERTISING OPTIONS

WECHAT PAID ADVERTISING OPTIONS. FACEBOOK ADS FOR CHINA?

Tencent 2016 Q3 Earnings Report

Tencent 2016 Q3 Earnings Report

Estimated number of newsfeed Ad impressions per day

Estimated number of newsfeed Ad impressions per day

James Mitchell Tencent Quote

“THE NUMBER OF ADVERTISERS (USING WECHAT MOMENTS ADS) INCREASED over 100% in THE LAST QUARTER.”

NEW FORMATS MOMENTS ADS: FULL SCREEN & INTERACTIVE

NEW FORMATS MOMENTS ADS: FULL SCREEN & INTERACTIVE

AD > MEMBER CARDS > COUPONS

AD > MEMBER CARDS > COUPONS

Starbucks Gifting Feature

“Gifting feature will gradually be opened to other qualified retailers in the future” – Wechat team

MOMENTS LOCAL ADS LAUNCHED NOV ‘16

MOMENTS LOCAL ADS LAUNCHED NOV ‘16

Moments ads for small businesses

Moments ads for small businesses. Fixed Price PPM (PAY PER 1,000 IMPRESSIONS) STARTING FROM 300 Up to 10 day campaign. 4,400 business districts in 81 cities

Incentivized sharing

2016: wechat banned Incentivized sharing 2017: h5 campaigns are dead now right?

STORY TELLING & CREATIVE MUCH MORE IMPORTANT

STORY TELLING & CREATIVE MUCH MORE IMPORTANT

Quote: Thomas Graziani

“the rules are simple: write great content, captivating stories, and don’t focus on shoving your products down the users’ throat.”

Bottom Line 2

EXPECT BETTER TARGETING AND MORE FORMAT OPTIONS, MORE SME FRIENDLY OPTIONS, follow developments closely, first movers on new formats usually have big advantage

WECHAT PAY

WECHAT PAY: THE 1ST UNIMAGINABLE TREND

3RD PARTY MOBILE PAYMENTS ($TN)

3RD PARTY MOBILE PAYMENTS ($TN)

WECHAT USERS MAKING E-COMMERCE PURCHASES THROUGH WECHAT

WECHAT USERS MAKING E-COMMERCE PURCHASES THROUGH WECHAT

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2014

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2014

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2015

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2015

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2016

CHINA 3RD PARTY MOBILE PAYMENTS MARKET 2016

COULD THIS BE THE YEAR WECHAT PAY DRAWS EVEN IN MARKET SHARE WITH ALIPAY?

COULD THIS BE THE YEAR WECHAT PAY DRAWS EVEN IN MARKET SHARE WITH ALIPAY?

WECHAT PAY REVENUE IS REPORTED UNDER ‘OTHER REVENUE’ IN TENCENT FINANCIAL STATEMENTS

WECHAT PAY REVENUE IS REPORTED UNDER ‘OTHER REVENUE’ IN TENCENT FINANCIAL STATEMENTS

LUCKY MONEY WAS THE KEY… THE PEARL HARBOR ATTACK

LUCKY MONEY WAS THE KEY… THE PEARL HARBOR ATTACK

Jack Ma Quote WeChat Lucky Money

“It was really impressive! This year’s Pearl Harbor attack was indeed beautifully planned and executed.”

WeChat Vs. Alipay

WeChat Vs. Alipay

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.

ALIPAY KEEPS ROLLING OUT NEW SOCIAL FEATURES…

ALIPAY KEEPS ROLLING OUT NEW SOCIAL FEATURES…

How about Apple Pay?

How about Apple Pay?

PAYMENT METHODS IN CONVENIENCE STORES: BEIJING ZHONGGUANCUN

PAYMENT METHODS IN CONVENIENCE STORES: BEIJING ZHONGGUANCUN

BEIJING ZHONGGUANCUN CONVENIENCE STORE STAFF UNDERSTANDING OF APPLE PAY

BEIJING ZHONGGUANCUN CONVENIENCE STORE STAFF UNDERSTANDING OF APPLE PAY

Bottom Line 3

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.

WeChat INTERNATIONAL STRATEGY

WeChat INTERNATIONAL STRATEGY: TARGETING CHINESE TOURISTS

WECHAT TEAM’S STRATEGY IN EUROPE

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.

GREAT NEWS FOR EUROPE

GREAT NEWS FOR EUROPE

Great News

EUROPEAN BUSINESSES ARE NOW FREE TO OPEN CHINA VISIBLE OFFICIAL ACCOUNTS FOR CHINA MARKETING: 20k euro marketing budget COMMITMENT, 300 dollar annual renewal, 6 weeks process. Open to all european businesses (excluding ‘sensitive categories’ media, political organizations)

THIS ACCOUNT IS VISIBLE IN CHINA!

THIS ACCOUNT IS VISIBLE IN CHINA!

Transfer OA

AND OWNERSHIP OF OFFICIAL ACCOUNTS CAN NOW BE Transferred. You are no longer married to your CHINA agency! EXPECT ANOTHER IMPORTANT change soon…

WECHAT PAY SIGNS STARTING TO POP UP GLOBALLY WHEREVER THERE ARE CHINESE TOURISTS

WECHAT PAY SIGNS STARTING TO POP UP GLOBALLY WHEREVER THERE ARE CHINESE TOURISTS

TENPAY (WECHAT PAY + QQ WALLET) TEAM IN TALKS WITH STRIPE JANUARY 2017

TENPAY (WECHAT PAY + QQ WALLET) TEAM IN TALKS WITH STRIPE JANUARY 2017

Bottom Line 4

OPTIONS AND TARGETING FOR NON-CHINESE BUSINESSES WILL GET MUCH BETTER. EXPECT PLENTY OF WECHAT PAY DEALS WITH OTHER GLOBBAL PAYMENT SERVICES

COMPETITION

COMPETITION: MORE NOISE?

Quote WeChat: William bao bean

“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.”

NUMBER OF WECHAT OFFICIAL ACCOUNTS 2013 THRU 2017 (FORECAST)

NUMBER OF WECHAT OFFICIAL ACCOUNTS 2013 THRU 2017 (FORECAST)

average views on wechat subscription accounts

average views on wechatsubscription accounts fell from 12% in EARLY 2016 to roughly 5% in jan 2017

KEEPING FOLLOWERS ENGAGED IS TOUGH

KEEPING FOLLOWERS ENGAGED IS TOUGH ONLY 10% OF OFFICIAL ACCOUNTS THAT FOLLOWERS CONTINUE TO PAY ATTENTION TO

REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS

REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS

REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS

REASONS FOR UNFOLLOWING WECHAT OFFICIAL ACCOUNTS

Quote: David Hornby

“A new follower on WeChat is 100X more valuable than on Weibo. Football clubs should use WeChat as their CRM platform for China.”

WECHAT OFFICIAL ACCOUNTSPOSTING TIMES: 9AM & 5PM PEAKS

WECHAT OFFICIAL ACCOUNTS POSTING TIMES: 9AM & 5PM PEAKS

WECHAT MOST ACTIVE TIMESFOR FORWARDING & SHARING

WECHAT MOST ACTIVE TIMES FOR FORWARDING & SHARING

Bottom Line 5

COMPETITION FOR PAGE VIEWS WILL CONTINUE TO INCREASE AS WECHAT MATURES
A CORE VALUE OF WECHAT FOR BRANDS IS CRM & PERSONALIZED COMMUNICATION CHANNEL

MINI PROGRAMS

MINI PROGRAMS: THE TROUGH OF DISILLUSIONMENT

MOST MARKETERS CURRENTLY ARE UNABLE TO SEE VALUE IN MINI PROGRAMS

MOST MARKETERS CURRENTLY ARE UNABLE TO SEE VALUE IN MINI PROGRAMS

WeChat Quote Dan Grover

“the ELEPHANT IN THE ROOM IS THAT OFFICIAL ACCOUNT’S BIGGEST VALUE ARE AS A BROADCAST CHANNEL.”

MARKETERS IN CHINA TREAT WECHAT LIKE EMAIL. YOUR WECHAT TIMELINE IS YOUR EMAIL INBOX FOR CHINA.

MARKETERS IN CHINA TREAT WECHAT LIKE EMAIL. YOUR WECHAT TIMELINE IS YOUR EMAIL INBOX FOR CHINA.

WeChat Quote Pony Ma

“Actually wechat is email. It’s a short fast email, but because it’s so fast you don’t think it’s email.”

BUT MINI PROGRAMS CAN’T BE USED THIS WAY

BUT MINI PROGRAMS CAN’T BE USED THIS WAY

MOBIKE POINTS TO THE FUTURE OF HOW MINI PROGRAMS CAN ADD VALUE TO OFFLINE BUSINESSES

MOBIKE POINTS TO THE FUTURE OF HOW MINI PROGRAMS CAN ADD VALUE TO OFFLINE BUSINESSES

WECHAT QR CODE SCANNER + MINI PROGRAM SIGNIFICANTLY REDUCES FRICTION FOR FIRST TIME USE

WECHAT QR CODE SCANNER + MINI PROGRAM SIGNIFICANTLY REDUCES FRICTION FOR FIRST TIME USE

WHAT WAS THE BIGGEST EVENT OF 2016 IN MOBILE?

WHAT WAS THE BIGGEST EVENT OF 2016 IN MOBILE?

Pokemon Go

Pokemon Go

Sameer Singh Quote

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 Quote

BAIDU MAPS AUGMENTED REALITY CAMPAIGN. ALIPAY AUGMENTED REALITY LUCKY MONEY FEATURE. QQ AUGMENTED REALITY LUCKY MONEY FEATURE.

BAIDU MAPS AUGMENTED REALITY CAMPAIGN. ALIPAY AUGMENTED REALITY LUCKY MONEY FEATURE. QQ AUGMENTED REALITY LUCKY MONEY FEATURE.

USUALLY MOBILE IS A ZERO SUM GAME POKEMON GO WAS DIFFERENT

USUALLY MOBILE IS A ZERO SUM GAME POKEMON GO WAS DIFFERENT

AVERAGE HRS CHINESE SPEND PER MONTH USING MOBILE APPS

AVERAGE HRS CHINESE SPEND PER MONTH USING MOBILE APPS

WECHAT IS USED TO SCAN QR CODES MORE THAN 80 MILLION TIMES PER DAY

WECHAT IS USED TO SCAN QR CODES MORE THAN 80 MILLION TIMES PER DAY

Quote Allen Zhang QR Codes

“the entry point for desktop internet is the search bar, the entry point for the mobile internet is the qr code.” Quote Allen Zhang QR Codes

WeChat CONNECTING EVERYTHING & EVERYONE

WeChat CONNECTING EVERYTHING & EVERYONE

Bottom Line 6

OFFLINE SCENARIOS, FEW CASES OF PROVIDING A TRUE VALUE ADD TO BRANDS YET, WATCH FOR NEW FEATURES AND APIS TO OPEN UP

WeChat New Features

WeChat New Features. VIDEO + LIVESTREAM!?

Tony zhang quote WeChat

“WeChat team maintain a very restrained attitude when doing things.” Tony zhang quote WeChat

Wechat Official partners ecosystem

Wechat Official partners ecosystem

Recent New WeChat Features

Recent New Features Example 1: Video now plays direct within wechat. (as of late 2016). Example 2: mp3 music plays direct within wechat.

Recent New WeChat Features

Example 3: Picture editing direct within wechat. (as of Dec 2016). Example 4: Video editing direct within wechat. (as of Dec 2016)

Quote TRACEY XIANG mobile short video

“THE MOBILE SHORT VIDEO SECTOR SAW EXPLOSIVE GROWTH IN 2016.” Quote TRACEY XIANG

Weibo Ecosystem

Weibo Ecosystem. Live Stream, Short Video, E-commerce

Weibo, The Chinese twitter, is bigger than twitter?!

Weibo, The Chinese twitter, is bigger than twitter?!

Quote - Jeremy Webb WeChat

“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.” Quote – Jeremy Webb

Rumors: Wechat Live stream?

Rumors: Wechat Live stream? ARGUMENT for: The Business model is fantastic. ARGUMENT against: mismatch with wechat product values.

Improvements to wechat search in 2016

Improvements to wechat search in 2016. core search, Friend’s news feed search, Group chat Search by date, Socially ranked Article search

Search Results from outside wechat now appearing

Search Results from outside wechat now appearing

Bottom Line 7

SHORT VIDEO – PROBABLY YES. LIVESTREAM – PROBABLY NO. BETTER SEARCH – YES

THE 2ND UNIMAGINABLE TREND

THE 2ND UNIMAGINABLE TREND: CHINA’S PAYING FOR KNOWLEDGE?!

Quote WeChat - Rhea Liu – Analyst at Tencent

“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

ATTITUDES TO PAYING FOR ONLINE LEARNING

ATTITUDES TO PAYING FOR ONLINE LEARNING

Quote Pony Ma

“Wait for wechat pay to read feature (to arrive).” – Quote Pony Ma

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

Case studies Different revenue models

Case studies: Different revenue models

VOLUTARY DONATIONS (TIP JAR FEATURE)

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

PAID Q&A

PAID Q&A: FENDA (ONE MINUTE ANSWER) QUORA WITH AUDIO MOBILE MICROPAYMENTS

Business model Make money asking questions to celebrities

Business model: Make money asking questions to celebrities. 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

SUBSCRIPTION: OPEN LANGUAGE

SUBSCRIPTION: OPEN LANGUAGE. PODCAST AUDIO CONTENT EXERCISES, VOCABULARY, GRAMMAR EXPLANATIONS TO MATCH

MATCHING SERVICE: YOLI

MATCHING SERVICE: YOLI. UBER FOR LEARNING ENGLISH. SHORT 15 MIN CLASSES. LEVERAGE WECHAT GROUPS

GATED COMMUNITY: JASON NG

GATED COMMUNITY: JASON NG 阿禅. PRIVATE GROUP APP 小密圈 200 rmb entry (28 euros) Lifetime membership.

CHINA IS changing…

CHINA IS changing…

Tencent Protection of Intellectual Property Platform

Tencent Protection of Intellectual Property Platform

China Connect Paris WeChat Presentation

This presentation is adapted from a keynote speech delivered at China Connect conference in Paris on March 2nd 2017

The Biggest WeChat Event Of 2017 Is Coming...