Shulou(Shulou.com)11/24 Report--

On August 22, Kuaishou released its results for the second quarter of 2023, with total revenue up 27.9% year-on-year to 27.74 billion yuan. Among them, the growth rate of online marketing service revenue is obvious, up 30.4% year on year to 14.35 billion yuan, the highest growth rate in a single quarter in nearly a year. In addition, Kuaishou's brand advertising revenue has also increased by more than 30% compared with the same period last year.

At the performance conference call held in the evening, Cheng Yixiao, founder and CEO of Kuaishou Technology, revealed that in the second quarter, not only internal circular advertising revenue still maintained a strong momentum better than GMV growth, but also an obvious recovery trend in external circular advertising, including games, media information, education and training, finance, and other industries showed an upward trend.

Specifically, in this quarter, Kuaishou's internal circulation advertising revenue was obviously driven by 618 e-commerce promotion activities. in addition, in February this year, Kuaishou first put forward the new business concept of "full-store ROI" in the short video live broadcast industry, and upgraded it to a "site-wide promotion" product in the second quarter, encouraging commercial customers to improve business efficiency in Kuaishou from a more global operational perspective.

After nearly four months of promotion, this global operation strategy has also been proved to be effective in improving the return on investment and willingness of e-commerce merchants. For example, clothing brand Hui Li started internal testing of promotional products on the whole site at the beginning of April, and GMV increased by 30% month-on-month. Food brand Golden Gong tested and launched at the end of April. While keeping the same level of ROI, consumption increased by 300% compared with the same period last year.

‎ Cheng Yixiao said that in the future, in terms of internal circular ecological construction, Kuaishou will still put forward hierarchical management plans in terms of flow delivery mechanism, support policies, product capacity and data infrastructure function optimization for customers at different business stages and business demands, so as to develop in the same direction as e-commerce business and promote the health and prosperity of commercial ecology.

In terms of external circulation advertising, it will continue to consolidate the product capacity of external circulation advertising, on the one hand, improve the quality of commercial materials, and better pry users' click rate and conversion rate. On the other hand, it will continue to optimize the deep retention indicators of download links in some industries to provide better results for advertisers.

In terms of brand advertising, we will continue to strengthen the infrastructure related to brand advertising, including accurate brand population equity precipitation and the construction of comprehensive brand marketing matrix, and provide industry solutions around specific scenaries. help brand advertisers to improve efficiency and do a good job in long-term operation on Kuaishou platform.

According to reports, this quarter, Kuaishou also launched the "Kuaishou Index" products, which can provide advertisers with a basis for delivery strategies from multi-dimensional indicators such as brand volume, search, talent analysis, and so on. With the improvement of these infrastructure, the number of Kuaishou active advertisers nearly doubled in the second quarter compared with the same period last year.

Looking forward to the opportunities of external circulation advertising in the second half of the year, there will be great opportunities for the game industry, especially the Mini Program game field that emerged as a new force last year. It is expected that the entire Mini Program game industry will reach 35 billion this year. To this end, Kuaishou has also set up a special team this year to provide overall solutions for customers in this kind of game industry, hoping to further gain market share.

In addition, short plays and some social tools in the media industry are expected to have good opportunities under the stimulation of abundant summer traffic, especially the paid skit track. Kuaishou has 260 million daily active users of skits, and the consumption soil is strong. In the first half of this year, Kuaishou further optimized the links between existing Mini Program and paid skits, and launched its product capacity in July, so that paid skits can be closed-loop within Kuaishou. More incremental releases of paid skits are expected in the future. For the head industries of external circulation advertising, such as games, media, education and so on, Kuaishou is also further promoting consumption by improving the supply and promotion of high-quality raw materials.

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