Traffic Changes of Digital Media in 2022 Q2

2022-07-19

In Q2, the domestic epidemic showed a trend of spreading in many places, and many major provinces and cities in China were affected, which had a significant impact on the catering, tourism, accommodation, entertainment and other industries.  After May, in the context of the weakening impact of the epidemic, the economy has shown a momentum of recovery. A series of national policies to promote consumption and expand domestic demand will also be actively implemented. And with the arrival of the next summer golden week, residents' willingness to consume will be significantly improved. How will these latest developments affect media traffic? In this week, GroupM Knowledge will analyze the media performance traffic in the second quarter of 2022 and reasons behind it.

Key takeaways are as below


The popularity of user participation in the mid-year shopping festival continued to heat up, and the competition for users on top platforms was fierce: With the official opening of the mid-year shopping festival, the overall consumption market has shown a recovery trend, and top e-commerce platforms showed good results during the "618" period.  Under the construction of the value-oriented to bring goods to Daren, the entire live streaming e-commerce has shifted from the original price war to the content war.   

Affected by the breaking of the circle of new phenomenon-level KOLs, the traffic of live streaming e-commerce has increased significantly, and the platform talents have shifted from bringing goods to pursuing long-term value: In the first half of the year, due to the combination of repeated epidemics, weak consumption and traffic spillovers caused by the absence of top anchors, the sales data of new talent anchors and the number of fans have risen steadily, achieving a breakthrough, and the growth rate of live streaming e-commerce is eye-catching.   

With the gradual control of the epidemic, the traffic of local life-related platforms has shown a steady upward trend: With the effective prevention and control of the epidemic and the suppression of the original consumer demand, it is expected that the traffic of local life-related platforms will rise steadily in the future.  

Sports and fitness KOLs have stimulated a comprehensive sports upsurge, and the obstruction of offline fitness has led to the rise of the popularity of online fitness applications: Offline fitness has been hindered and the public's health awareness has been improved. With the fitness live broadcast of major KOLs, the nationwide sports and fitness has been gradually pushed to the peak, which has promoted the double harvest of traffic and attention of various sports and fitness apps and live fitness KOLs.

Competition among top video sites is fierce, and the summer program competition is about to kick off: The exclusive hot drama "A Dream of Splendor" promotes Tencent Video's daily active users to top the list. Video sites are accumulating energy for the next season, and the competition for summer program traffic with quality improvement and volume reduction will become more intense.   

The normalization of game regulatory policies and the orientation of high-quality products help upgrade the content of the game industry: The average daily usage time of game service applications has maintained a double-digit year-on-year growth in the past quarter. The normalization of regulatory policies and the emphasis on the development of high-quality products have promoted a virtuous circle of the game industry.

Among the changes in mainstream media traffic from April to May 2022, only the average daily traffic of e-commerce media and search browsers rose slightly from the first quarter, while the average daily traffic of social media, short videos and online videos fell to varying degrees from the previous quarter.

Average daily media traffic = number of active users * per capita usage per day

Total media traffic = number of active users * per capita usage times in the current month

The popularity of user participation inthe mid-year shopping festival continues to heat up, and the competition amongtop platform users is fierce.

The online mid-year “618” Shopping Festival was officially launched on May 20, and the popularity of user participation on leading e-commerce platforms during the promotion period has continued to heat up in recent years.  According to the data of weekly active users, the number of active users of Taobao, Pinduoduo and JD.com's top e-commerce platforms during the Shopping Festival increased compared with the same period last year.  As the scale of mobile shopping users continues to grow during the promotion period, the competition for users on the top platforms is becoming more and more intense.  With the recovery of the epidemic, the consumption market as a whole has shown a recovery trend, and leading e-commerce platforms have shown good results during the "618" period.  Douyin Mall, which significantly drives sales with "mall scene and search scene", has a total live broadcast time of 40.45 million hours. It has cultivated the "Oriental Selection", which is the dark horse of live broadcast, and has transformed the entire live broadcast delivery industry from the original price war to the existing content war.

The growth rate of live e-commerce is obvious, and the platform has changed to pursue long-term value.

With the repeated pandemic, weak consumption and the absence of top anchors, during the "618" shopping festival in 2022, the growth rate of live broadcast e-commerce was eye-catching, with sales growth of 124%. Among them, the Oriental Selection is the representative, which is different from the mode of carrying goods in the ordinary live broadcast room. The Oriental Selection takes the cultural content such as "bilingual selling of goods" and "explanation of English knowledge points" as the attraction point. Since June, the sales data and the number of fans of the New Oriental Douyinaccount have been rising steadily, and the effect of breaking the circle is significant.

With the gradual control of the epidemic, the traffic of local life-related platforms has shown a steady upward trend.

Affected by the epidemic, thecancellation of prevention and control policies such as dine-in and home officehas led to alarge number of new merchants on the O2Oplatform. At the same time, the food and beverage delivery business in someareas has become a rigid demand of the public. During May, the traffic of integrated O2O applications represented by Meituanand Dianping increased significantly month-on-month. In addition, although transportation was once greatly affected by thecontinuous impact of the epidemic, with the effective control of the epidemic,consumer demand for short-distance travel was released during the Labor Dayholiday, and the average monthly traffic of a series of local travelapplications, mainly ‘Amaps’and ‘Baidu Maps’, increased steadily.

Exercise and fitness KOLs stimulate the upsurge of all-round exercise, and the hindrance of offline fitness drives the rise of the popularity of online fitness applications.

Under the repeated impact of the epidemic, offline fitness has been blocked and the public's health awarenesshas increased, and the user activity of various sports and fitness apps hasalso increased.  Among them, more than 60% of the users of the sports and fitness APP are also concerned about the KOLs in this field. Under the upsurge of the fitness live broadcast of themajor KOLs, the nationwide sports and fitness will be gradually pushed to the peak.  According to data from the Douyin Sports and Fitness Report, in 2021, the number of followers of fitness anchorsincreased by 208% year-on-year, and the revenue from live broadcast increasedby 141% year-on-year.  The outdoor sports scene with APP as the core is gradually changing to the home sports scene with KOL as the core.

Competition among leading video sites isfierce, and the summer competition for repertoire is about to begin.

The hit drama “A Dream of Splendor”, which was exclusively broadcast on Tencent Video in June, climbed to 8.8 points on Douban on its first day of broadcasting, once becoming the domestic drama with the highest score this year. This undoubtedly drove the growth of Tencent Video‘s traffic and made Tencent Video the number one video website by daily active users from May to June.  However, the summer vacation is approaching, and many high-quality works of major video websites are ready to be released. From the perspective of the film list, the platform will reduce low-return content and concentrate on creating high-quality products, and the proportion of high-quality content will gradually increase.  Hence, during the summer, competition for online video traffic will become even fiercer.

Game regulatory policies become normal, and the orientation of high-quality products helps the game industry to upgrade its content.

Under the influence of the pandemic at home in many places from March to May, the average daily usage time of game service applications maintained a double-digit year-on-year growth.  In addition, after a lapse of 8 months in April 2022, the game version number will be released again, which reinvigorates the confidence of the game industry.  And with the gradual implementation of policies for the game industry, the trend of normalization of regulatory policies is clear.  As one of the important carriers of the cultural industry, games have also been highly valued by the state in recent years, and more and more attention has been paid to the protection of copyright. The regulatory authorities have emphasized the development direction of high-quality products through various channels, helping to build a new game format with "content as king" and forming a virtuous circle within the game industry.  It is expected that gaming media traffic will increase further during the summer vacation in the next quarter.