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As Tencent and Alibaba Mutually Open the Ecosystem Joy Spreader Sees New Growth Opportunities

08-02    

According to recent Dow Jones News, Tencent and Alibaba are considering opening up their ecosystems gradually, and both are separately working on plans to ease the restrictions. The opening up of their ecosystems will significantly impact China’s internet retail market, and mobile new media performance marketing agencies, like Joy Spreader, are expected to embrace new growth opportunities.


As China is tightening the antitrust regulations, anti-monopoly measures have deepened to rein in the unrestricted growth of China’s big tech companies. According to the news, Alibaba’s initial moves include allowing access to WeChat Pay in e-commerce, while Tencent will allow Ali to provide e-commerce services in WeChat.


As a giant enterprise in the field of social media, enjoying the traffic advantage, Tencent is able to monetize the social media traffic through Ali’s huge e-commerce business following the opening up of their ecosystems; meanwhile, Ali’s merchants have the opportunity to gain a bigger market share from Tencent’s high-quality traffic pool of social media. In short, this potential collaboration will serve mutual benefits as Ali can draw on Tencent’s traffic, while Tencent can utilize Ali’s platform.


From a broader perspective, the opening of the two big platforms will undoubtedly unfold a broader space for cooperation for the entire mobile internet industry in China, bringing more options and convenient experiences to consumers and promoting the evolution of China’s internet ecosystem.


Variance denotes opportunity. With the opening of the platform ecosystem and free flow of information, massive and complex deal matching needs will also arise, making efficiency less attainable. The problem can be solved by multiple approaches such as intelligence, data and algorithms, and interest-based recommendations. In this process, new opportunities for better development will emerge for enterprises with multi-platform service capabilities across Ali, Tencent and ByteDance, as well as experience in diversified product services such as e-commerce and interactive entertainment.


As the pioneer in the field of mobile new media marketing technology in China, Joy Spreader is one of the few with unparalleled expertise and know-how on cross-platform data analysis, algorithmic recommendation and a diversified product portfolio. In terms of platform, as of the first quarter of 2021, Joy Spreader’s traffic database has accessed 55,616 WeChat public accounts, 29,828 TikTok accounts and 11,567 WeChat video accounts, while reaching more than 640,000 realizable access points. Regarding the products, Joy Spreader has accessed 1,457 models of interactive entertainment and other digital products and 198 SKU of e-commerce products.


It’s worth mentioning that the video e-commerce business is becoming the important engine to drive revenue and profit growth for Joy Spreader. According to the Annual Report of 2020, Joy Spreader generated HK$594 million annual GMV of e-commerce products and delivered a 353.92% year-on-year growth. During TikTok’s June 18 promotion this year, Joy Spreader realized a GMV of approximately HK$350 million, implying significant growth momentum.


In addition, as the exchanges in the Internet sector are becoming more frequent, cyber information security has entered an era of tightening regulation, which promotes the protection of personal information while also indirectly raising the bar for mobile new media performance marketing and other internet sectors, further enhancing the competitiveness of legally compliant enterprises.


In the future, as more and more isolated ecosystems are unwrapped, the marketing companies like Joy Spreader will continue to benefit from the trend as they have the advantages of data algorithms and is able to legally and compliantly leverage it to empower new consumption and drive user growth. Meanwhile, it will also provide support of more accurate modelling and data for the content of mobile new media publishers and product matching of industry customers, hence improving matching efficiency and transaction conversion rate.


When viewed over a longer period, only an interconnected Internet ecosystem is the one that best serves the interests of all parties.



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