Analysis and trends of short video industry marketing strategies!

This article mainly focuses on the marketing research of short video companies, that is, the marketing and promotion of short video products. It aims to explore the marketing strategies of short video companies in promoting their own products from the perspective of advertisers.

Short video content is very popular at present, and it can be found in various fields such as news and information products and e-commerce products. This study will focus on short video products whose main attribute is short video platforms. Products that have short video content channels but whose main attribute is not short video platforms are not within the scope of this study.

Core summary:

Short video market development

The short video industry has entered a mature stage of development, and it is estimated that the short video market revenue will reach 211.03 billion in 2020. Policies are strengthening the governance of the short video advertising industry, and digital marketing models provide a solution to the slowdown in user growth in the short video industry.

Short video user insights

The short video industry has a significant effect of user penetration, with third-, fourth- and fifth-tier cities accounting for nearly half of the total. Users mostly use the app during lunch breaks and before bed. 70% of users have made purchases on short video platforms, mostly focusing on content e-commerce. App stores are users’ preferred product acquisition channel, and social platforms, as users’ most trusted advertising channels, have better marketing effects.

Marketing strategy

Conduct strategic analysis from four dimensions: content, channel, scenario, and conversion. In terms of content, we will explore product features and present marketing information in the form of advertisements that are preferred by users. In terms of channel selection, marketing will be carried out through channels with high user acceptance and preferred channels that meet download needs, which will achieve better results. At the same time, it caters to users' high-frequency usage scenarios, broadens their product selection space, and achieves user conversion and consumption conversion in marketing information presentation and user consumption habit cultivation.

Marketing trend analysis

In the future, short video companies will fully realize content-based marketing, starting from content and interests, and integrating short video brands into the content; at the same time, based on social responsibility, they will realize distinctive regional marketing while "helping the poor and bringing goods" and "promoting city brands."

01. Development history of China’s short video industry

The characteristics of the development period guide the marketing direction, and short videos enter the stage of monetization and conversion

The short video industry has gone through eight years of development and four periods of development, gradually moving towards a mature stage with clear commercialization.

Products such as Kuaishou and Miaopai have gradually transformed from tool products into short video content communities, opening up a short video platform track; with the support of Meipai, the marketing effect of the "three famous campaigns" was remarkable, and users gradually participated in the construction of short video communities and content sharing, pushing the short video market to a new height. In 2017, Internet giants gradually entered the short video market and adopted huge subsidies to promote content production, which led to a sharp increase in creators' enthusiasm for participation. In 2019, content e-commerce became another focus of the development of the short video industry in the era of inventory.

02. Market size of short video companies

The new traffic pool is developing rapidly in the mobile Internet era, and a market worth hundreds of billions of yuan is expected in the future

From 2017 to 2018, the traffic base of the short video industry grew rapidly, and traffic was quickly accumulated in terms of both user scale and user stickiness. At the beginning of 2018, the market structure of the short video industry was initially determined, and the leading platforms gradually embarked on the road of commercialization and monetization, quickly completing the transformation from "traffic accumulation" to "traffic monetization". At the same time, its high-quality traffic resources have been recognized by different industry chain participants such as advertisers, content providers, and MCN agencies. The massive investment from the entire industry chain ensures the continued rapid growth of the short video industry.

In 2018, the short video industry market size reached 46.71 billion yuan, with a growth rate of 744.7%, mainly driven by the leading short video platforms opening up advertising monetization. It is estimated that the market size of the short video industry will reach 100.65 billion yuan in 2019. In the future, as short videos gradually become an indispensable way for users to entertain themselves online, short video platforms will still have a lot of room for development in advertising monetization and other monetization methods. It is expected that the market size will reach 200 billion by 2021.

03. Marketing environment of short video companies in China

Policies strengthen advertising industry governance, short video marketing requires multiple considerations

With the market development in recent years, companies have increased their advertising and marketing efforts in order to better shape their brand value and gain more attention and traffic. As a result, the advertising market has achieved rapid growth, and confusing advertising content and a proliferation of counterfeit and shoddy information have appeared repeatedly. Following incidents such as Douyin placing "insulting martyrs" advertisements on Sogou and Kuaishou being forced to remove content due to infringement, the country has introduced relevant regulatory policies on short video company marketing and the quality of short video platforms.

In addition to meeting advertising policy requirements and avoiding content that involves orientation issues, political sensitivity, vulgarity, kitsch, or poor social impact, we should also pay attention to other policy risks that may arise with the introduction of advertising governance policies, such as short video infringement, false marketing on short video platforms, and other illegal activities.

The growth of industry user scale has slowed down, and there is an urgent need to develop new markets

According to iResearch data, the total monthly number of independent devices for short video products achieved rapid growth in 2018, increasing from 570 million to 730 million, and the user penetration rate increased from 46.9% to 54.4%, reaching a relatively rapid growth stage. In 2019, the monthly growth in the number of independent devices slowed down, increasing from 760 million in January 2019 to 850 million in October 2019, with the growth rate stabilizing at around 1%, and user growth was weak.

The current Internet dividend period is gradually fading, and the short video industry needs more precise marketing and markets that extend beyond core areas to introduce fresh blood.

04. Summary of the main marketing and promotion methods of short video companies

Mobile marketing is the main method, and social media advertising is the main promotion method for short video companies

Short video companies mainly use online media advertising, outdoor advertising, and offline exhibition activities to carry out corporate brand marketing. When choosing online media for advertising, short video companies generally use media with a high degree of overlap with the user characteristics of their own platform and a similar tone.

Social advertising has become the preferred marketing method for short video companies. Advertise through information flow ads, splash screen ads, banners, etc. on social media to gain attention from new users. As an important part of full-scene marketing, outdoor advertising has the characteristics of tapping into user behavior trajectories, connecting with online consumption, and extending marketing reach.

Offline marketing activities mainly take the form of meetings and competitions to establish their own brand image, deepen user perception offline, and enhance brand stability online.

05. Chinese short video user profile

With obvious male characteristics, short video products are penetrating into the middle-aged and young population

The distribution of user portrait characteristics of short video products is relatively obvious. According to iResearch data, the proportion of male users of short video apps in China in 2019 was 54%, slightly higher than that of female users.

The TGI index for male users is 101.7, and the TGI index for female users is 98.6. Compared with all netizens, the characteristics of the male group of short video product users are more obvious.

In terms of age distribution, people aged 25-35 account for as high as 51.3%. Short videos are gradually penetrating from young people under 24 years old to the middle-aged and young user group aged 25-35.

From the perspective of educational level distribution, people with low education level of high school or below are prominent, accounting for as high as 80%, and the TGI index is 104.2. The proportion of undergraduate and junior college students is relatively low, accounting for 20% of the total population.

06. Motivations and influencing factors for using short video products

Content quality and community environment will effectively influence users’ product choices

Motivation for use: According to survey data, 75.6% of users said that "browsing interesting content" is the main reason for most people to choose short video products, and "sharing wonderful moments in life" has become an important reason for short video users to choose short video products in addition to "learning knowledge and skills." Therefore, the excellent video editing function in short video products will more effectively attract users among similar products and become a strong competitive point.

Analysis of product selection factors: The richness and fun of short video content are still the biggest competitive advantages. Interesting content will be more attractive to users, and more high-quality content will effectively increase user stickiness. Social attributes have also become an important factor in increasing user stickiness for a short video product. The life sharing posted by users receives positive responses from people in the community, which has a positive encouraging effect on users and effectively realizes the positive cycle of "watching-interaction-participation".

07. Short video content preference

In addition to entertainment, fragmented learning of knowledge and skills also attracts users

Content preference: Humor, food and life, and skills and knowledge are the three most popular categories of short videos. For fragmented time, light humor, cooking, and skills and knowledge learning are the users' preferred ways of entertainment. Compared with other media forms (such as long videos, text, etc.), short videos are concise, fast and vivid. Therefore, users are more receptive to knowledge content that is technical and practical. 63.3% of users started using short video products to learn knowledge and skills, while 55.5% of users said they liked short video content related to skills/knowledge.

Duration preference: As the pace of life quickens, fragmented content can effectively fill the consumption of leisure and entertainment content, while user attention is also reduced. In terms of content length, users prefer to watch short videos of 1-3 minutes, which have more content concentration than short videos of 30 seconds to one minute, and are also within a reasonable range of user attention span. However, content of 3-5 minutes is too long, has high requirements for plot rhythm, etc., and is generally accepted by users.

08. User usage time and scenarios

The usage period is concentrated in breaks and before bedtime, and better marketing effects can be achieved during peak hours

Users generally use short video products before going to bed and during breaks. Corresponding to the usage time, 18:00-22:00 is the most used time for short video products, while the lunch break from 12:00 to 14:00 also accounts for a part of the usage time. From a marketing perspective, peak usage periods represent periods when user demand is concentrated. At this time, the marketing information delivered by short video companies will be more in line with user needs, expand users' product selection space during fragmented consumption periods, and effectively improve marketing effectiveness.

09. Number and frequency of user usage

The frequency of use is highly integrated with the scenario, and 5-10 minutes of usage is the most popular among users

The current competitive landscape of the short video market is basically stable, and the leading short video products have formed their own differentiated product tone and content style. According to survey data, users generally use 2 to 3 short video products at the same time for daily use. In terms of usage frequency, nearly 30% of users use short video products 2-5 times a day, corresponding to usage scenarios such as before bedtime, commuting, and breaks.

In terms of usage time, users generally focus on fragmented time of 5-10 minutes and medium-to-long entertainment of 10-30 minutes. Only 20% of users spend more than 30 minutes and less than 5 minutes. Fragmented time makes it difficult for users to enter into an immersive experience, but the overall daily usage time cannot be underestimated.

10. Analysis of consumption on short video platforms

The consumer market and user habits still need to be cultivated, and there are huge potential paying users

Consumption analysis: Consumption on short video platforms is mainly concentrated in two aspects: internal e-commerce and live broadcast rewards.

1) When it comes to purchasing goods, clicking on links to jump to external e-commerce platforms is still the main consumption method for users, accounting for as high as 51.6%, slightly higher than purchases on e-commerce platforms embedded in short video products. Currently, users lack confidence in purchasing products through short video internal e-commerce channels. Users prefer to view products within short video products and then jump to external purchases.

2) In terms of live broadcast rewards, 40.9% of users have rewarded live broadcast content on short videos. The live broadcast function embedded in the product has enabled users to shift their consumption habits of “rewarding anchors”, which has effectively stimulated user consumption.

Analysis of non-payment: Among all the surveyed users, nearly 30% said that they had never consumed anything on the short video platform. Among them, they had not yet formed the habit of paying for short videos. The proportion of users who lacked the awareness of paying for short videos was as high as 62.27%. At the same time, 32.6% of users believed that the content quality was not worth paying for. As for the merchandise displayed on the platform, 31.87% of users believe that the quality of the merchandise fails to arouse their desire to buy. The payment habits of short video users still need to be cultivated.

Small-amount consumption is the mainstream, and consumption frequency is low

Consumption behavior on short video platforms is still dominated by small-scale consumption, with the frequency being 2-3 times a week in the United States. In the past six months, users with a consumption range of 300-499 yuan accounted for as high as 35.5%, with an average monthly consumption of 50 to 80 yuan. High-spending users account for a small proportion, and the consumer market still has considerable room for growth. In terms of consumption frequency, users generally have a low consumption frequency, with only 20% consuming more than 4 times a week.

11. Catalyst habit analysis

Advertising during peak product usage hours is more appealing to users, and social media channels are hot

Channel preference: In terms of reach channels, nearly half of users use social media, recommendations from acquaintances, and search engines as the main channels for learning about short videos. Thanks to the rapid development of social media, its user stickiness and immersive advertising make it the most effective user advertising channel. Recommendations from acquaintances, as a spontaneous word-of-mouth communication, are more persuasive.

Delivery scenario preference: Similar to the usage time of short video products, users prefer to receive short video product-related ads before bedtime, commuting, and during breaks. Among them, 42.7% of users are willing to accept ad push before bedtime. At this time, users are more receptive to short video corporate brand ads, and the marketing effect will be more effective.

12. User advertising content preferences

The advertising style fits the product tone, and short video ads can better speak for themselves

Ad type preference: Users are more receptive to immersive, native ad types that have less impact on user experience.

1) Short video ads can better speak for themselves and directly present the characteristics of their own products, and are accepted by 49.6% of users.

2) Video patch ads and information flow ads have native immersive features and have little impact on user experience, and are ranked in the first tier.

3) Incentive advertising has distinct characteristics. It rewards users for watching ads by giving them points, privileges, etc. It is gradually being adopted by more and more advertisers. At the same time, the user acceptance effect is significant under the reward mechanism.

4) Banner ads, splash screen ads, and text link ads are typical APP advertising forms, which have the advantage of permanent exposure and are ranked in the second tier. Pop-up ads are less accepted by users because their presentation method focuses on interrupting user behavior and attracting attention.

Marketing style preference: 62.5% of users believe that short video product advertisements should be mainly humorous and funny, which is in line with users' preference for humorous content and product expectations. At the same time, nearly half of users believe that short video corporate brand advertisements should also be young, lively, fresh and literary, which can better fit the tone of the platform.

13. Factors affecting advertising acceptance

Advertising content still needs to be polished, and identifying potential users will effectively improve the reach effect

Advertising feature preferences: simplicity, authenticity, novelty, and immersion are the main features of user advertising preferences. Simple content will effectively reduce users’ resistance to advertising, while more authentic advertising content will increase users’ trust; novel advertising can increase users’ curiosity and desire to explore products; and immersive advertising will minimize interference with users’ normal use of product functions and increase users’ favorability toward short video brand advertising.

Analysis of factors affecting ad clicks: Among the factors that influence users to click on ads, "ads for products that have already interested them" is the reason for more than half of users to click. At this time, marketing advertising provides an effective "fast track" to help users access products more conveniently. Therefore, accurately identifying potential short video users and reaching them precisely has become the most effective way for short video companies to market. At the same time, novel advertising ideas and high-quality content are also powerful factors influencing users to click on ads.

14. Post-advertising behavior

There is a lot of room for improvement in the download guidance link, and the app store is still the main channel for product acquisition

Post-advertising behavior: After watching a brand promotion ad for a short video product, 54.9% of users become curious about the product and take the approach of obtaining information independently to increase their understanding of the product. At the same time, 54.9% will choose to click on the ad to learn more details. Nearly half of the users only have an impression of short video products. When it comes to further download conversion, only 30% of users choose to download the product. In the logic of marketing advertising content, there is still much room for improvement in the download guidance link.

Download channel preference: Thanks to the development of China's Internet mobile application market, when users have the need to use short video products, app store search and download is still the preferred download method for the vast majority of users; similar to the selection method of understanding short video products, nearly half of users choose to download short video products after accepting recommendations from acquaintances. In the future, word-of-mouth marketing to attract new users is still worth exploring. 39.2% of users generate intuitive advertising conversions and download after seeing the ad recommendation. The preset installation effect is not obvious.

15. Short Video Enterprise Marketing Strategy - Content

Explore your own characteristics and enrich your marketing content experience

In terms of content format, according to survey data, most users still obtain more information about short video products by independently searching for information after watching advertisements. Its advertising content page should highlight its product features more, make the marketing content consistent with the entertainment product tone of short video products, with humor, coolness, youth and fashion as the theme features, convey the value and lifestyle of short video companies and their products, and impress consumers at the content tone and emotional level.

In terms of advertising forms, the marketing information that consumers receive in the Internet environment is diverse and of varying quality. Short video ads, information flow ads, and incentive ads are more in line with the characteristics of short video products themselves. However, for marketing content with the same theme, content forms that are highly interactive and creative will be able to penetrate users' minds more deeply, such as incentive ads and information flow ads. While perceiving creativity and participating in interactions, they will deepen their impression of marketing content and increase users' perception of the brand.

16. Short video enterprise marketing strategy-channel

Start with channel suitability and download demand satisfaction

When choosing distribution channels, short video products should start from product characteristics and choose marketing channels that are more conducive to increasing marketing effectiveness and acceptance.

On the one hand, according to survey data, social media is the second most user-accepted marketing channel after the official websites of short video products. Short video products have strong social attributes and can easily involve acquaintance relationship chains. Social media has the characteristic of mutual communication, which increases the power of marketing promotion through social media marketing, easily achieves more effective marketing results, and meets the user's preference needs in terms of acceptance.

On the other hand, mobile application stores are gradually maturing, application listing is strictly reviewed, and user trust is increasing. AppStore and the internal app stores of major mobile phone manufacturers have become the primary download channels for users to meet their short video needs. Accurately place ads in channels where users have high trust, increase marketing investment in app store channels, and realize marketing supply in channels where users obtain product demand.

17. Short video enterprise marketing strategy - user conversion

Focus on post-reach behavior and optimize download guidance

When placing advertisements, identifying users who are already interested in the product and aware of the brand is particularly important for precision marketing. Since such users already have some perception and understanding of the product, precise delivery in front of them will effectively establish a "fast track" between users and brands, allowing users to more intuitively and quickly increase their willingness to use the product, thereby achieving conversion downloads and improving the click-through conversion effect of such users.

The download guidance process should take into account both user experience and download path. When advertisements appear, users should not be disturbed during normal use, and users should be given the choice of whether to watch them. For example, adding a convenient ad close button, placing ad images at the bottom, and reducing the amount of ad images that cover normal content. On the download path, use one-click download methods such as QR code download and app store jump to shorten the user's consumption path to obtain the product.

18. Short video enterprise marketing strategy - consumer conversion

Focus on cultivating user confidence and consumption habits

Currently, short videos are vigorously developing content e-commerce and moving towards the consumer conversion stage. However, according to survey data, user consumption habits and platform trust still need to be cultivated.

On the one hand, for users who have made e-commerce purchases on short video platforms, 51.6% of users will click on the product and store links on the short video content side and jump to external e-commerce platforms to make purchases, while only 48% of users will make purchases through the built-in e-commerce of short video products such as Douyin product showcases and Kuaishou stores.

On the other hand, among users who have never paid for short videos, 62.3% have no habit of paying for short video products in China, and have varying degrees of disagreement with the quality and products. This precisely reflects that current users of short video products lack confidence in built-in e-commerce, and are unable to retain users in the product's built-in e-commerce through products and product experiences, which in turn causes the platform to be unable to obtain the corresponding commission on product profits.

19. Short video enterprise marketing strategy - scene and time selection

Capture peaks in user product usage demand and achieve targeted replenishment

For users, implementing marketing strategies during time periods when their usage needs are strong and when they prefer advertising push will more effectively reach users, deepen the effectiveness of corporate publicity, and ultimately achieve user conversion. According to survey data, short video users use short videos more frequently before bedtime, during commuting, and during breaks, which basically coincides with users' preferred time periods for advertising.

Excluding commuting hours, users’ acceptance of advertising decreases. Before going to bed and during breaks, users have a strong demand for the fragmented entertainment functions of short video products. The release of short video products at this time will increase users' attention to short video products, prompting them to further obtain advertising content and realize user demand supply.

20. Short video enterprise marketing trends

Based on social responsibility, realize characteristic regional marketing and promotion

In the future, short video companies will shoulder more important social responsibilities. While realizing social value by leveraging the fragmented dissemination and short and fast content of short videos, they will also simultaneously achieve marketing promotion in characteristic regions.

On the one hand, influenced by recent policy directions and social trends, short video poverty alleviation has become a hot event in content marketing and live streaming. Short video platforms provide a platform for bringing goods to poor areas, expand the promotion channels of agricultural products, and promote poverty alleviation short videos that mainly showcase rural products and industrial ecology. This will not only promote local economic development, but also make short video platforms gain high visibility and praise in the local area, and attract more users in the area;

On the other hand, local governments are cooperating extensively with short video platforms, leveraging the platforms' massive user resources to promote the development of local cultural tourism and product resources. While the city attracts tourists for sightseeing and talent to settle in, it also promotes short video products to specific regional groups.

Advertisements are more content-based, and users need ads with stories.

In the past, most marketing activities were based on brand exposure, product promotion, etc. The advertising was relatively simple and user participation was poor. As consumers gradually begin to have the right to choose information independently and are no longer hijacked by the media, the main trend in short video product marketing is to actively create content to attract consumer attention and gain user attention through content marketing.

On the one hand, "advertising contentization" will enable deep interaction between marketing information and consumers, from simple comments to deep emotional resonance, enhancing user trust and brand.

On the other hand, the high-quality content created by advertisers will provide consumers with a lot of fun and topics, stimulate users' enthusiasm for participation, enable users to participate and share spontaneously, and further expand marketing value.

The above sharing is a reference for marketing in the short video industry.

Author: Ari

Source: iResearch