wechat impact report 2016
TRANSCRIPT
IMPACT REPORT
2016
Translated from Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT), “2016 WeChat Impact Report,” March 21, 2016
Translated Presentation by
WALKTHECHAT
March 2016
Disclaimer
Data source:Data of this report is from Tencent Penguin Intelligence’s online survey and China Academy of Information and Communications Technology (CAICT)’s phone survey. Sample group includes 40,443 participants online and 1,101 participants on the phone.
Data accuracy:Phone interview is done on a random basis, with an accuracy rate of 95%. Online survey is sampled based on user’s gender, and industry.
Statement:This report represents Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)’s independent research. It does not represent Tencent officially.
Sample Size
40,443Participants online
Data collected onMarch 2016
1,101Participants by phone
Data collected at the end of 2015
1,017WeChat Official
Account Operators Data collected at the
end of 2015
806Enterprise Account
Operators
Data collected at the end of 2015
Report Highlight
67.5% of WeChat users are male
More than 90% of users use WeChat every day, more than half of which use WeChat more than 1 hour daily
28% of WeChat users have more than 200 WeChat friends, and 61.4% of users check WeChat Moments every time they open WeChat
35.8% of WeChat Read users see increase in reading time; more than 25% of WeChat Sport users saw an increase in their physical activity
WeChat Red Envelop is the most used WeChat payment feature; 76% of users transfer/spend more than 100RMB per month
Report Highlight II Social media became the second largest
news channel, market share is more than computer and TV combined. Largest channel for reading news is mobile News Apps
The top reasons trigger sharing on WeChat are: value (usefulness), interest, and emotional value
62.2% of users use life-style features, the top ones are: mobile top-up, movie tickets purchases, paying for restaurants/tickets
More than 25% of WeChat Official accounts are in the General News category; service industry make about 20% of all official accounts
Among all company’s WeChat account, traditional manufactory industry has the highest number of accounts
WeChat official owner are investing a lot more time and monetary investment into account operation
Table of Content
01
02
03
04
05
06
07
08
WeChat development
WeChat Users
WeChat + social media
WeChat + payment
WeChat + media
WeChat + life-style service
WeChat corporate service
Report team
WECHAT DEVELOPME
NT
01
WeChat Development Review
WeChat launched 2011.1
Add WeChat Moment2012.4
Add WeChat Official Acct2012.7
WeChat payment2013.8
WeChat Enterprise Acct2014.9
WeChat City Service 2014.12
WeChat Moment Ads2015
Original Content2015
190
MO
NTH
LY A
CTIV
E U
SE
RS
(m
illion)
2013.3
4002014.3
5002014.12
6002015.9
In the past 5 years, WeChat has developed from a communication tool to a platform that connects people, services, and businesses.
WeChat at a glance
700 million Monthly Active
Users
10 million WeChat Official Accounts
700,000 WeChat articles are
published per day
200 million users linked WeChat with
Credit Card
560,000 Company Official Account
WeChat City Services launched in 78 cities across
16 provinces
8 billion of WeChat Red Envelopes were sent during Spring
Festival 2016
200,000 businesses accept WeChat
Offline Payment in-store
Source Tencent, data as of 2016.2
Financial Service• WeChat Payment • WeChat bank
E-commerce• JD.COM• Weidian• Cross-border shops
Startups• Open platform• Co-working space
AI• Smart device • AI software
Communication service • WeChat life• Government service
Hardware Manufacture• WeChat hardware
Agriculture• Agriculture customization • Authentic verification system
Business promotion • Smart mall• WeChat credit card
WeChat + other industries
Industry improvement
Innovation Service
Community service
E-commerc
e / financial industry
Transportation • Didi Dache• Ticket service
WECHAT USERS
02
Male vs. Female ratio is 2:1 (default gender is male)
94% of users will login to WeChat daily 55% of users user WeChat more than 1
hour per day 40% of WeChat users work in
corporations
More male WeChat users
67.5%
32.5%
WeChat User Gender Distribution
67.5% of users are male
Last year, the ratio was 1.8:1
Source: WeChat Economics Social Influence Analytical Report, China Academy of Information and Communications Technology (CAICT)
Female
Male
User employment distribution
40.4%
25.3%
14.4%
10.8%
4.8% 2.6% 1.8%
WeChat user employment status
Corporation Freelance Unemployed Government/armyFarmer
Corporate worker count as the largest user group, 40.4%
Stable income group means high purchasing power
Source: WeChat Economics Social Influence Analytical Report, China Academy of Information and Communications Technology (CAICT)
94% of users use WeChat daily
61% of WeChat users open WeChat more than 10 times per day. 36% of users open WeChat more than 30 times per day
Frequency of using WeChat has strongly increased from last year.
Number of Times per Day that WeChat Users in China open WeChat, March 2016% of respondents
50+
31-50
11-30
5-10
<5
Never open
Unknown
21%
15%
25%
22%
11%
5%
1%
Source: WeChat Economics Social Influence Analytical Report, China Academy of Information and Communications Technology (CAICT)
Mor
e fre
quen
t
Users spend hours using WeChat everyday
32% of users use WeChat for longer than 2 hours
WeChat has high user stickiness
Average amount of time spent on WeChatMarch 2016% of respondents
> 4 hr
2-4 hr
1-2 hr
30 min - 1 hr
10-30 min
<10 min
17%
15%
22%
24%
15%
7%
Source: WeChat Economics Social Influence Analytical Report, China Academy of Information and Communications Technology (CAICT)
Long
er ti
me
WECHAT +
SOCIAL
03
28% of users have more than 200 WeChat friends
61.4% of users check WeChat Moments everytime they open WeChat
User’s update about daily life content is the most popular type of content
Pictures and videos are more popular than articles
Number of WeChat friends increased from last year
<50 50-99 100-199 >200
37.3%
22.5%
37.0%
12.2%
21.3%23.6%
27.1% 28.0%
How many WeChat friends do you have?
2014 2015
55.1% of users have more than 100 WeChat friends
Only 16% of users have less than 50 WeChat friends
More than 200 friends category doubled compared with 2014
Source: WeChat Economics Social Influence Analytical Report, China Academy of Information and Communications Technology (CAICT)
4.1%
6.4%
6.4%
11.4%
12.6%
25.3%
32.5%
33.9%
39.8%
53.5%
58.0%
Top 10 things people do on WeChat
WeChat Activities Conducted Daily by WeChat Users in China, March 2016% of respondents
Source: Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Browsing and posting on Moments
Sharing information (image, voice messages, video, etc.)
Reading content via followed public accounts
Sending/receiving money (e.g., Red Pocket)
Mobile payments
Sharing Stickers/ emoji
Use “WeChat Shake” feature
Use WeChat sports
Gaming
Social commerce
None of these
Most of users check WeChat Moment every time they open WeChat
How often do you check WeChat Moment? March 2016% of respondents
Everytime I open WeChat
Often
Sometimes
Never
61.4%
22.6%
14.7%
1.3%
Note: sample size 40,443 people, excluding non-WeChat users; Source: Tencent Penguin Intelligence
WeChat users are addicted to checking Moments
Users pay more attention to personal life-style content on Moments
What kind of content do you pay more attention to?March 2016% of respondents
None of above
Articles shared by friends
Friends' feedback on my post
Friends' personal life-style post
7.0%
29.8%
35.3%
61.4%
Articles shared by friends only got 30% of attention mostly due to the larger quantity of content being shared
Note: sample size 40,443 people, excluding non-WeChat users; Source: Tencent Penguin Intelligence
“Like” is cheaper than re-share
Besides reading articles, what other things do you do on WeChat Moments? % of respondents
None of the above
Share content
Post content
Leave comments
Like other posts
11.8%
23.8%
35.1%
38.5%
57.6%
(videos, pictures &text)
Only 23.8% of users would re-share content on their moments. Marketer needs to be more targeted when creating shareable content.
Note: sample size 40,443 people, excluding non-WeChat users; Source: Tencent Penguin Intelligence
Pictures and videos are more favorable content on WeChat Moments
What type of content do you like to see on WeChat Moments? % of respondents
None of above
Articles
Short videos
Text
Pictures
3.8%
22.3%
45.2%
50.0%
50.7%
Only 22.3% of users likes to read articles on WeChat Moments
Note: sample size 40,443 people, excluding non-WeChat users; Source: Tencent Penguin Intelligence
WeChat + Social summary
Brands could consider Moments advertising to catch users’ attention since half of users indicates more favorable of pictures and videos
As the sharply increasing number of WeChat friends, content on WeChat moments, and information posted by official account, Tencent is facing a bigger than ever challenge to filter the information.
WECHAT +
PAYMENT
04
Red envelop is the most used payment features in WeChat payment
67% of users spend more than 100 RMB per month using WeChat payment
Offline payment is faster and easier than traditional payment method
Red envelope is the most popular payment feature
WeChat Mobile Payment Functions Used by WeChat Users in China, March 2016
9.0%
12.8%
13.6%
20.0%
33.1%
56.9%
58.1%
84.7%
Note: *payment processed via scanning a QR code generated by an app Source: Tencent Penguin Intelligence
Digital Red Envelope money
Making Payments
Money transfer to contacts
Receivable
WeChat credit card *
Pay off credit card
Splitting payment with friends (e.g., for restaurant bills)
None of these
% of respondents
Users are starting to use WeChat payment for larger transactions, beyond transferring small payment as red envelopes
Near 70% of users spend more than 100 RMB per month
Unknown
> 5K RMB
2~5K RMB
1~2K RMB
500~1K RMB
300~500 RMB
100~300 RMB
< 100 RMB
2.0%
6.0%
7.0%
8.0%
13.0%
14.0%
19.0%
31.0%
67% of users spend over 100 RMB per month, more than doubled from last year.
34% of users spend over 500 RMB per month, six times more than last year (5%).
Note: excluding non-WeChat psyment users. Source: WeChat Economics Social Influence Analytical Report
Monthly Average Amount That WeChat Users Pay/Transfer
% of respondents
Mor
e m
oney
Main reasons to use WeChat offline payment: ease, convenience, promotions
46.2%
44.9%
39.2%
18.7%
h
Easy to use, no need for changes
Can pay with phone, cashless
Others
Discounts & promotional campaigns
Users choose to use WeChat payment because it is easier, more convenient and occasionally have promotion discount campaign
Note: sample size: 31349, excluding WeChat users with no offline payment experience. Source: Tencent Penguin Intelligence
Why do you choose to use WeChat for offline payment?
% of respondents
WeChat Payment Vs. Conventional Payment: Strong Willingness to Use WeChat Payment
46.4%
37.3%
16.3%
Note: sample size: 31349, excluding WeChat users with no offline payment experience. Source: Tencent Penguin Intelligence
53.6% of customers indicates they would consider paying with WeChat when given the option.
Which payment method do you prefer: WeChat payment or cash/credit card?
% of respondents
Prefer to use WeChat Payment
Either way
More likely to use cash/credit card
Pre
fer C
ash
Pre
fer W
eCha
t Pay
men
t
WeChat + Payment summary
1.WeChat payment penetration has rapidly increased due to popularity of red envelope and growth of mobile payment
2.The amount of spending using WeChat has increased rapidly, and spending has been expanded to in-store experiences
3.The mobile payment trend is likely to move from social purpose (red envelopes) to financial and e-commerce transactions
4.The key for expanding WeChat payment’s market share is through offline and banking systems
WECHAT +
MEDIA
05
Following news and information is the No. 1 reason users follow an official account
Social media is the second largest channel to read news
Top three reasons users share a news article are: valuable, interesting, and emotional attachment
More users read news on social media than TV & Newspaper combined
Through which channel do you read news?
% of respondents
Newspaper
TV
News websites
Social media
Mobile Apps
1.5%
8.0%
20.6%
40.4%
55.4%
Note: sample size 40443, excluding non-WeChat users. Source: Tencent Penguin Intelligence
(WeChat, Weibo, etc.)
In another phone interview “The Top Main Channel for Acquiring News and Information”, WeChat is the number one source for reading news.
The key to increase article re-share is: valuable & interesting
Valuable, interesting and emotionally touching content trigger the most sharing on WeChat Moments
What kind of articles will you share on WeChat?% of respondents
Don't re-share
Other
Incentive & rewards
Niche content
Trendy topic
Emotionally touching
Interesting
Valuable
8.5%
5.9%
7.3%
17.7%
20.0%
38.6%
39.2%
48.8%
Note: sample size 40443, excluding non-WeChat users. Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Official Accounts become a main channel for acquiring information & news
News and promotions are the two main reasons why people follow WeChat accounts
Main Purposes for Users to Follow a WeChat Public Account% of respondents
74.2%
41.9%
30.9%
24.6%
19.3%
11.9%
5.5%
0.7%
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT); Industry and Planning Institute
Acquire information & news
Follow a business and receive promotion information
Access services provided by Official Accounts
Read about politics
Business consulting
Don‘t follow any
Government & public service
Other
WeChat + Media summary
1.WeChat becomes the main channel for news reporting
2.Most people read news through mobile phone, instead of traditional channels like TV and newspaper
3.WeChat ecosystem restructured and decentralized the media industry
4.The focus and format of news reporting is greatly influenced by social networking
WECHAT +
LIFE SERVICE
05
Over 60% of the WeChat users have used WeChat life service, mostly for paying for telephone bills
15% of users have donated through WeChat Charity.
Over 60% of the WeChat users have used WeChat life service
Phone Bills
Movies Tickets
Entertainment
Paying Bills
QQ Money
Lottery
Never Used
47.1%
20.9%
17.4%
14.1%
10.6%
6.5%
37.8%
Types of WeChat Life Service being used
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Most users use WeChat Life Service to pay for phone bills. The scope of service are also expanding to entertainment and buying movie tickets.
& food
Sports, Charity, and other services are booming
Official Acct service
WeChat Finance
WeChat Read
WeChat Charity
WeChat Sports
WeChat Coupon
4.9%
5.4%
6.1%
15.0%
15.3%
19.7%
Have you used the following WeChat features?
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
WeChat is also expanding in other areas including coupons, charities, and sports
Survey indicates WeChat Sports could incentivize users to work out more
10.7%
11.3%
23.2%
26.2%
39.9%
62.5%
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Convenient method to get exercise data
Effects of using WeChat Sport
No effect
Increase interactions with friends
Increase exercise frequency
Care more about their health
Make more sports-lover friends
62.5% of the WeChat Sports users think the biggest advantage is that it shows the result of their daily exercise.
In addition, because WeChat Sports enables the ranking feature, 39.9% of the users claim that it helped them increase interactions with their friends; 23.2% of the users focus more on sports health.
WeChat Read: make use of fragmented moments of free time
Make good use of small
pieces of time
Content used for WeChat Moment
Increase reading
Others No effect
49.3%41.8%
35.8%
10.4% 9.0%
Feedbacks from WeChat Read Users(not include non-users)
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
49.3% of the WeChat Read users think that WeChat Read helps them use fragmented time more efficiently
41.8% of them use content from WeChat Read to post on WeChat Moments
35.8% of the users read more frequently
WeChat + Life Service summary
1.WeChat has moved from a social platform to providing more value added service that affects users’ life
2.The more internet-based that an offline industry is, the more effectively WeChat works for this industry in terms of attracting users.
3.Living in a fast-paced life, people need services like WeChat Read and WeChat Sports to help them use fragmented time more efficiently.
4.Comparing to other industries which are relatively mature, Financial Services + WeChat can work together to make a brighter future.
WECHAT +
CORPORATE
06
72% of Official Account is registered through a business entity
20% of Official Accounts are Service Account Traditional manufacturing industry is with the
No. 1 entity to register WeChat Official Account Significant increase in the investments for
Official Account
72% of Official Account are registered through a business entity
27.30%
72.70%
Culture/Media/Entertainment 27.8%Service 20.6%IT/Communication/Internet 17.2%Commerce 10.1%
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Industry of registered entity
Business
Personal
Types of WeChat Official Accounts
Official Account operators are investing more into account operation
<10k 10-100k 100-500k >500k
29%
19%
3% 2%
35%
21%
5%3%
Investment amount for WeChat Official Accounts
2015 2016
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Over 64% of the operators invested in their own public accounts; the number was 53% last year
In the meantime, the funds invested in each section all increased comparing to last year
Official Accounts are used for: information sharing, campaigns & customer service
Others
Recruitment
BigData Analytics
After-sales
Client Management
Ecommerce Platform
Consulting Service
Client Interaction
Marketing Campaign
Information Release
9.8%
11.9%
12.2%
12.4%
17.1%
18.2%
21.0%
45.8%
64.1%
84.7%
Main uses of WeChat Public Accounts
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
84.7% of the operators use public accounts for information release. Marketing Campaign and Client Interaction are also important
As Official Account’s feature evolves, operators are finding more creative ways to use it
Enterprise account: traditional manufacturing ranks #1
Culture,Media&Entertainment
Other
Trade/Architecture
Real Estate
Finance
Government/Non-profit
Service
IT & Communication
Manufacturing
3.5%
8.4%
8.7%
9.3%
9.9%
11.2%
12.9%
16.9%
19.2%
Industry distribution of Enterprise Account
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Traditional manufacturing industry is the No. 1 industry to use WeChat Enterprise Account
Only 3.5% of companies in the entertainment industry use Enterprise Account, they prefer to use Official Account
Enterprise account users report internal efficiency enhancement
Source: WeChat Economics Social Influence Analytical Report; Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT)
Others
Enhancement of Service Efficiency
Enhancement of Corporation Efficiency
Simplify Business Process
Lower Communication Cost
System Management/Improvement of IT Technology
Increase internal management efficiency
16.3%
22.8%
34.4%
35.6%
38.2%
46.5%
69.7%
Main Usage and influence of WeChat Enterprise Accounts
70% Enterprise Account users use it to increase efficiency for internal management
Enterprise accounts play an important role for internal communication, operations, services, management, and cooperation.
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