CNNIC: The 44th Statistical Report on the Development of China's Internet in 2019 - Instant Messaging

To download the report: add 199IT’s official WeChat account [i199it] and reply with the keyword [44th Internet Development Report in 2019]!

Instant Messaging

As of June 2019, the number of instant messaging users in my country reached 825 million, an increase of 32.98 million from the end of 2018, accounting for 96.5% of the total Internet users; the number of mobile instant messaging users reached 821 million, an increase of 40.40 million from the end of 2018, accounting for 96.9% of mobile Internet users.

In the first half of 2019, the domestic instant messaging industry maintained a good development trend, mainly reflected in two aspects: enterprises' exploration of new products and new functions and the further growth of business revenue.

In terms of products, traditional instant messaging vendors and new entrants launched a number of new products in the first half of the year, and the focus of market competition has gradually shifted from mass services to vertical segments, as shown in the following two points: First , traditional instant messaging vendors continue to look for market segments with special usage scenarios or specific industries. In order to solve the problem of using instant messaging in driving scenarios, we launched an ecological Internet of Vehicles solution to help users realize voice interaction, waking up WeChat with steering wheel buttons and other functions. First, it integrated internal resources such as Yunxin to establish NetEase Smart Enterprise Department, which is committed to applying enterprise instant messaging tools to the e-commerce field; second, new entrants have emerged to challenge traditional instant messaging providers. Take ByteDance as an example. In the first half of the year, it launched two instant messaging products, "Duoshan" and "Feiliao", to explore market opportunities for segmented groups through video social networking and interest social networking.

In terms of revenue, instant messaging companies have further deepened their profit sources, among which advertising, live broadcasting and financial services have become the core driving force for corporate revenue growth. First, the advertising business has maintained growth, and the advertising value of mini program traffic is highly valued by companies. It is expected that this business will occupy a more important position in its overall revenue in the future. According to Tencent's financial report data, its online advertising revenue accounted for 17.1% of its overall revenue in the first half of 2019, a further increase from the same period in 2017 (16.0%) and the same period in 2018 (16.8%). Mini programs are one of the important sources of its advertising revenue growth; second, the live broadcast business has increased revenue. Take Momo as an example. Instant messaging products represented by Tencent have increased corporate revenue by developing live broadcast services. According to Momo's first quarter financial report, live broadcast revenue increased by 14% year-on-year, accounting for 72% of its total revenue. Third, the financial business has developed rapidly. By directing traffic to its various financial services, Tencent's financial technology and enterprise service business revenue increased by 37% year-on-year in the second quarter, the highest year-on-year growth rate among all major businesses.

To download the report: add 199IT’s official WeChat account [i199it] and reply with the keyword [44th Internet Development Report in 2019]!