Advertising revenue list of China's top 18 Internet companies in 2021
2022-04-02
In 2021, due to the recovery of the epidemic and the supervision of some industries, Internet advertising showed different dynamic development trends. In the first half of this year, many industries basically recovered to the level before the epidemic. The brand owners increased their efforts to launch the advertising market, which was full of activity, including the rapid growth of domestic Internet Co advertising business, including Kwai Fu, B station, tiger tooth, etc., all up to 50% or even 200%. However, in the second half of the year, education, real estate, finance and other industries carried out drastic reforms, which led to a significant change in the proportion of marketing expenses in these industries. According to the 2021 China Internet advertising data report, the growth rate of education and training advertising dropped sharply from the first in the whole market in 2020 (57.1%) to negative 69.64%, and the advertising revenue was also lower than the level five years ago, becoming the industry with the largest decline in 2021. At the same time, the advertising of real estate category showed the first negative growth in nearly five years, with a decline of more than 50% compared with 2020, and the income also fell to the level of five years ago. According to the further analysis of the advertising business of domestic Internet companies, morketing summarizes the following six development trends. 01 e-commerce advertising is still the mainstream In 2021, e-commerce advertising will still be the mainstream of Internet advertising. It can be seen from the list that Alibaba, pinduoduo and jd.com have occupied three seats in the top 5. These three e-commerce giants have dominated the list for at least three years (2019-2021). In 2021, the total revenue of the three advertising businesses accounted for 45% of the total revenue of the list. In terms of growth rate, compared with 2020, the growth rate of advertising and marketing business of Alibaba and pinduoduo slowed down slightly in 2021, which were 24.75% and 51.32% respectively. In 2020, the growth rate of Alibaba was close to 50%, while pinduoduo was higher, close to 80%; Different from the slowdown of the two, JD has increased by nearly 10%, with a year-on-year growth rate of 34.87% in 2021. As Alibaba, which has been firmly at the top of the list for many years, any action will attract the attention of the industry, such as the introduction of direct marketing mode for more and more categories. Zhang Yong, CEO of Alibaba group, pointed out that "whether it is a direct business or a platform model, we hope to serve their consumers well for businesses, not only selling products, but also promoting their brands, establishing connections with users, especially creating conditions for making good use of customers' data." In other words, Alibaba's direct marketing model is not a traditional supplier, which establishes a wall between merchants and consumers, but helps them deliver goods to consumers in a more efficient way, including through more flexible pricing and combined marketing. "Alibaba now provides businesses with a cross business and multi scenario. The cross business includes direct business and the original platform business. The multi business scenario includes far field and near field. The far field is also divided into multiple business forms. Whether it is brand direct business or channel direct business, Alibaba provides a package of services to help them serve and operate consumers well." Zhang Yong said. It is worth mentioning that in addition to the comprehensive e-commerce platform at the head, vipshop, which is vertically in the field of special sales, is growing rapidly. In 2021, vipshop's advertising revenue increased by 31.62% year-on-year, 10 times the growth rate in 2020. 02 the proportion of information flow advertising continues to rise Information flow advertising is equal to the development of e-commerce advertising. In recent years, information flow advertising has become a particularly significant growth section. There is a popular saying in the industry that "for every 5 yuan of advertising budget spent by the advertising industry, 1 yuan is contributed to information flow advertising". This is because the byte beating, Baidu, Tencent, micro-blog, fast game player and other Kwai continue to deepen the layout of the information flow content, further increasing the commercialization of the information flow advertising. According to the annual insight report on China's online advertising in 2021, information flow advertising accounted for 36.8% in 2021, ranking second only to e-commerce advertising. This figure was 12.5% in 2016, nearly tripled in just a few years. As an important player of information flow advertising, byte beat has not yet been listed, but some media reports say that its advertising revenue will reach 183 billion in 2020 and 260 billion in 2021. At present, referring to the data in the list, we can see that the revenue of advertising business ranks second only to Alibaba. In addition, Tencent and Baidu have dominated the top five of the list all year round. In 2021, the advertising business achieved 88.666 billion yuan and 80.695 billion yuan respectively, with a year-on-year increase of 7.77% and 10.78% respectively. Focusing on Kwai's short video and live broadcast, its advertising business development is not to be underestimated, with an increase of nearly 100%. In 2021, Kwai's advertising revenue reached 42 billion 665 million yuan, up 95.22% from the same period last year. In the mid 2021, Kwai Fu reported that in the information flow advertisement, we can evaluate the effect of different advertising contents by means of artificial intelligence tools, so as to help create innovative content. This can not only bring higher returns to advertisers, but also increase the number of advertisements displayed on the basis of maintaining user experience. These efforts have further improved the effectiveness of our online marketing services and bargaining power in the second quarter of 2021. 03 rapid growth of video advertising If the vast majority of the advertising market share has been occupied by e-commerce advertising and information flow advertising, then video advertising is a batch of dark horses rushed out at the moment. Cheng Kwai, co-founder, executive director and CEO of fast start, thinks that "China's short video DAU (active users) has an opportunity to reach 1 billion 100 million." From the list, we can see that in the video and live broadcast, Kwai Fu, B station and tiger tooth sales revenue in 2021 has increased rapidly, reaching 95.22%, 145.47% and 93.32% respectively. Tiger tooth is a direct broadcast platform in the game field, and the industry that Kwai touse and B station touch is relatively extensive. Next, we will further analyze why the two can get higher advertising revenue in 2021. In 2021, Kwai's advertising revenue was 42 billion 665 million yuan, and the average online marketing service income of every active user was 138.4 yuan, 23 times that of 2017. Moreover, the number of Kwai advertisers is increasing, and the growth rate in 2021 has exceeded 60%. Advertisers' monthly average consumption has increased by double digits. There are three main reasons behind this: First, advertisers have budget skew for the video platform with a large volume and continuous flow growth. The fourth quarter of 2021, Kwai Tong's total traffic volume increased by nearly 58% year-on-year. Secondly, Kwai has 5 kinds of advertising products, including internal and external circulation plus brand, alliance and star, which can satisfy advertisers' appeals on marketing links, and the advertising is growing faster. The growth of the internal circular advertising is faster than the market, reaching three digits. Finally, Kwai Fu constantly improves advertising quality, optimizes algorithms and innovative products, and promotes advertising load and conversion rate. "In 2021, the advertising load rate of the fast hand was slightly improved according to the plan, and there was still room for growth", Cheng Yi Chi, co-founder, executive director and CEO of Kwai Kwai, publicly stated at the earnings call conference. Let's look at station B. the growth rate in 2021 is nearly 150% higher than that in 2020, and the advertising revenue has reached 4.523 billion yuan, nearly 30 times that in 2017. First, the number of users of station B is growing, while the single user realization efficiency of the advertising end is also growing. In the fourth quarter of 2021, the dau of station B increased by 34%. Meanwhile, the realization efficiency of Mau in 2021 increased by 83% compared with the previous year. The superposition of the two is a higher advertising growth rate. Second, in the past few years, the number of users of station B is growing horizontally and breaking the circle vertically. In the process of users expanding from one circle to more circles, more and more advertisers find station B, such as games and 3C before, and then food, beverage and beauty and makeup. Last year and this year, cars became the key advertisers of station B. In the fourth quarter of 2021, automobile became the top five advertisers in station B. Third, with the trend of video advertising, more and more advertisements will be displayed by video. Therefore, station B will develop a model similar to Topview according to the expression form of products, and there will also be the expression form of video advertising. The promotion of story mode in products in the future will also bring the vertical screen advertising mode. Fourth, because most of the videos of station B are made by up owners, they will integrate their creativity into the advertisements and add customized advertisements in the videos. Therefore, there will be many original advertising forms, which are called "up main commercial list advertisements" in station B. In 2021, this kind of original advertisement will be accepted by more and more advertisers. By the end of 2021, more than 4200 brands will be settled on HuaHuo platform, and the re investment rate will reach 75%. At the same time, more and more up owners in station B have entered the fireworks platform to receive these advertisements. 22000 up owners have settled on the fireworks platform in 2021. Fifthly, while the traditional pugv is growing rapidly, the newly expanded TV screen and story mode of station B are also growing rapidly, which is equivalent to more scenes and more video content. You can add more advertisements. 04 private domain continues to be hot In 2021, private domain has become an important marketing focus for the majority of brand owners. If the focus of previous discussions was "should we do private domain", last year, the focus of everyone's attention rose to a new height and became "how to do private domain". In the specific landing operation, enterprises in different industries, different development stages and different volumes have different demands for private domain, which can be roughly divided into four types: First, the private domain is regarded as a new customer acquisition battlefield, opening up a new customer acquisition channel outside the stock channel; Second, regard the private domain as a tool to provide users with efficient services to ensure efficient communication with users; Third, use the private domain as a channel to test new products. For example, Oreo tests the new Zero sugar Oreo in the private domain. When there is good feedback in the private domain pool, it will sell to the market on a large scale; Fourth, private domain is an asset that enterprises can freely control. Enterprises need to know who users are and where they are... And then gradually develop stranger users into mature people, then become friends, and finally become family. When users become the family of the enterprise, they will naturally take the initiative to promote. For example, during the epidemic in 2020, old users recommended nearly 70% of orders for Weilai. In fact, many advertisers are stationed in the Tencent ecosystem to do private areas, and continue to build private areas through small programs, official account numbers, friends circle advertisements, video numbers, and WeChat. Tencent's financial report shows that in 2021, the total amount of physical commodity transactions operated by merchants doubled year-on-year. In addition, in the fourth quarter of 2021, wechat daily active advertisers increased by more than 30% year-on-year, and more than one third of the advertising revenue of the circle of friends came from advertisements with applets as landing pages and advertisements connecting users and customer service representatives through enterprise wechat. Tencent is also constantly enriching the content diversity of video numbers and improving the product experience. The per capita use time and total video playback volume of video numbers have more than doubled year-on-year. Moreover, the live broadcast of the video number has made major breakthroughs in the number of users and participation. For example, Tencent's first online concert of Westlife exclusively held by the video Number attracted 27 million people. Besides Tencent, tiktok also provides the help of advertisers with private domain. Tiktok tiktok's 2021 tiktok private domain white paper shows that by the end of 2020, the number of enterprise users has exceeded 5 million, and in 2021, it has maintained a high growth rate. In July 2021, the total number of enterprise was about 80.
Edit：Li Ling Responsible editor：Chen Jie
Source：Morketing
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