TikTok’s overseas encounter, globalization lost. As the pillar of ByteDance traffic and revenue, headlines and shakes have hit the ceiling or are about to hit the ceiling. Can a new growth engine be grown here on the three tracks of ByteDance’s crazy layout games, online education, and e-commerce? More than two months ago, the well-known publisher Lu Jinbo wrote a passage in today’s headline, quoting the author Lin Yutang’s sentiment: “Why our planet is a good planet.”
At the time, the emotional words didn’t attract much attention, but they caught the attention of Zhang Yiming, founder of Byte Dance, the parent company of today’s headlines.
He responds to a seemingly lacking understanding of “literary romance”: not too small or too big, and fiber optics allow global networking to communicate simultaneously.
“The Earth’s average spherical radius of 6371 km is about 40,000 km long, the speed of light is 300,000 km per second, theoretically the best network delay of any two points is not more than 0.14 seconds, the network real-time interaction is basically feasible.” The science and engineering man Zhang Yiming further explained.
Measure “global”, these data for Zhang Yiming may be rotten to the heart. After all, he led Byte Dance, china’s most successful internet company ever, with its star product TikTok swept the world, with 2 billion downloads worldwide.
From Japan to India to Australia and the United States, 800 million users each month swipe a variety of magic short videos on TikTok, opening the app on average eight times a day, taking nearly an hour.
Although TikTok has not yet been commercialized on a large scale, its audience represents a mouth-watering market – nearly 90 per cent of users are between the ages of 16 and 44 and 60 per cent after 90.
At the time, almost everyone thought that the only problem that could stop TikTok from moving forward was technical, and that wasn’t a problem for Byte Dance, which is sitting on a lot of “technological cows”.
It wasn’t until the end of June that a “black swan” suddenly appeared, breaking the game.
The Indian government ordered a ban on 59 Chinese apps, including TikTok, which has since been plunged into regulatory crisis in the US and Australia.
Previously, India was the largest market for TikTok users, with more than 120 million monthly live users. The U.S. is the market with the highest share of TikTok’s overseas revenue.
Sensor Tower reported in April that in-app revenue for The Voice and overseas version of TikTok reached $456 million in the first quarter of 2020, with Us users contributing $86.5 million, or 19 percent, to $86.5 million.
In just two months, the world facing Byte Dance has changed face. Anxiety, tough times, repression, survival, and the media began to label Byte Dance with these new labels in their coverage.
In the face of the vortex of public opinion, Byte Dance has not responded, but has been moving frequently recently.
In addition to “firefighting” overseas, ByteDance is stepping up its efforts to tap into various sectors of the domestic business, including gaming, education and e-commerce.
ByteDance has told investors that it plans to focus more on growth in the Chinese market by expanding into new areas and trying to develop a new and popular app, according to a recent report by The Information, a US technology media outlet.
Even without internationalisation, Byte Dance faces growth anxiety and needs to tap into new fist products, new traffic and the backbone of revenue growth beyond today’s headlines, shake voices and TikTok.
The TikTok crisis has exacerbated this anxiety.
Globalambition is in tatout.
In 2016, Zhang Yiming and Ping Duo duo founder Huang Wei guest CCTV Financial Dialogue column.
At the end of the program, host Chen Weihong asked Huang Wei, “If you were Zhang Yiming, what would you do in the face of giants such as BAT?” “
“I’m going to be more global.” Huang said.
He gives two reasons: that entrepreneurs at the time had the advantage of a global vision and had greater opportunities to do so, and that when a company was deployed globally, it would be more comfortable to mobilize global resources to hit the Chinese market.
Huang Qi and Zhang Yiming are 80 years old, they are very close in thought, and the former said is exactly what the latter was doing at the time.
In 2012, Zhang Yiming, who left his position as CEO of Nine Nines, began preparing for “Today’s Headlines.” When it came to the name, the founding team brainstormed the first name in English, ByteDance. Byte was very techno, dance was very artistic, and the combination of two words was influenced by Jobs’s “putting products at the intersection of technology and the humanities”.
In addition, the name also implies global ambitions, Zhang Yiming hope that the company was born to face the world.
“I’m sure Chinese internet companies are already well placed to compete globally.” In an interview with CCTV, Zhang Yiming said today’s headlines in China and overseas have the opportunity to become an important gateway for mobile phone users to obtain information.
In fact, in early 2015, they still had doubts about not doing short videos. In 2014, the entire Beijing Zhichun Road subway is Tencent micro-vision ads, micro-blogging second shot is also in full promotion, the end of the United States, fast hands have also been up, “we feel that we have missed.” “
So, on the sea-going product, Zhang Yiming first played the graphic card – known as the overseas edition of today’s headline topBuzz.
TopBuzz, an information distribution app, has entered the U.S., Brazil and Japan markets, and at one point stood at the top of Google Play’s download volume.
But the good times don’t last long. It was repeatedly involved in headline party and fake news, abandoned by foreign users, and soon began to decline.
In 2019, The Information reported that ByteDance intended to sell TopBuzz, and in June 2020, it was reported that ByteDance was shutting down TopBuzz.
Zhang Yiming’s enthusiasm for overseas markets is still high, even if the graphic products are not well off the sea. At the Wuzhen Internet Conference at the end of 2016, Zhang Yiming made it clear that globalization will be one of the core strategies of the 2017 headlines.
It was only in the form of going out to sea that Byte Dance began to change his style of play.
On the one hand, Byte Dance began to buy products that have been successful overseas, “borrowing boats out to sea”. In 2016-2017, ByteDance invested in DailyHunt, India’s largest content integration platform, BaBE, Indonesia’s most popular news integration platform, and even tried to buy reddit, the social news site.
On the other hand, in 2016, Zhang Yiming finally made up his mind to “All in short video”, and a number of products in parallel, at home and abroad synchronous lying on the line.
In 2016, small videos of shaking and volcanoes came out. At that year’s headline-grabbing conference, Zhang Yiming announced that he would spend 1 billion yuan to support short video creators.
In addition, ByteDance has acquired Flipagram, a U.S. mobile video creation platform, and short video app Musical.ly, founded in China but dominates the U.S. market.
Among them, byte Dance’s acquisition of Music.ly in 2018 is a crucial step in its trip to the sea.
Music.ly, which went live in 2014, topped the U.S. iOS Free List; was second only to Facebook’s Instagram in the photo-free list; and at its peak, one in five U.S. teens used Music.ly.
But buying Music.ly is also an expensive deal. ByteDance cost $1 billion, but it also reaped more than 60 million monthly users from Europe and the United States.
With the influence of Music.ly, TikTok stands at a high starting point.
2018 is a crucial year for ByteDance’s globalization.
At today’s 6th anniversary celebration, Zhang Yiming said that today’s headline 2018’s annual keyword is “globalization”, the company’s vision from “do the most understanding of your information platform, connect people and information, promote creativity and communication” to “global creative and communication platform.”
A few days later, in front of Qian Yingyi, president of Tsinghua School of Management, and more than 700 Tsinghua teachers and students, Zhang Yiming reiterated today’s global goal, which is expected to take three years to achieve, when “half of the headline users will be from overseas.” “
2020 is the last year of Zhang Yiming’s “Three-Year Goal of Globalization”.
On March 12th Mr Zhang announced an overhaul of the company’s organisational fortunes in an internal letter, taking the helm of Global, where he is the global CEO of ByteDance, and spending more time in Europe and the US and other markets.
ByteDance’s global workforce will also reach 100,000 this year, Zhang said. To date, the byte family employs more than 180 cities in 30 countries and more than 180 cities.
With its global expansion, ByteDance has recruited globally, including bolstering its overseas executive team.
In May, for example, Byte Dance even poached Kevin Mayer, a former Disney executive, as CEO of TikTok.
In April, Nick Tran, a former Vice President of Brand Marketing and Culture at Hulu, joined TikTok as head of north American marketing.
Last June, Blake Chandlee, who has been on Facebook for about 10 years and is responsible for global business partnerships, joined ByteDance as vice president of global business solutions.
These efforts have not prevented the crisis from coming.
On July 6th U.S. government officials said they were considering blocking Chinese social apps, including TikTok. On July 8th U.S. President Donald Trump made the same statement, saying it was indeed possible to block TikTok.
In Australia, which has few users, there are also reports that Australia is also reviewing whether TikTok is at risk for data privacy.
For TikTok, these are very bad. Although the market size of TikTok has expanded rapidly over the past few years, its commercialization process is far from keeping pace.
In April, about 86.6 percent of the revenue from The Apple App Store and Google Play Store earned $78 million, according to Sensor Tower, with about 86.6 percent of that coming from China, followed by the Us, which contributed about 8.2 percent of its revenue.
This means that TikTok is in a embattled position before it can cash out, and the huge early investment is at risk of watering.
In addition, for Byte Dance, TikTok is an important support for its $100 billion valuation. The setback of TikTok may have a negative impact on ByteDance’s valuation in the capital markets, its brand image and even its revenue sourcing in its main business.
According to 21st Century Economic Report, ByteDance’s 2018 bet agreement with investors is to achieve a 70-80% increase in market value of $200 billion within three years, and to buy back at 8% compound interest if it does not have an IPO within six years.
With overseas markets under pressure, it’s time for ByteDance to re-examine its domestic market.
Dig deep into games, education, e-commerce.
In recent times, ByteDance has been an important investor in the primary market, active on a number of tracks.
According to Guohai Securities’ research report, ByteDance’s investment layout has been extensive over the past few years. From March 2015 to March 2020, ByteDance’s investments were in cultural entertainment, gaming, education, advertising marketing, mobile Internet, big data, cloud computing, consumer upgrades, enterprise services, e-commerce, hardware, and more.
In these investment cases, about 7 angel wheels, 20 A-round total about 100 million yuan, B round about 6 investment 300 million yuan, C round 7 about 200 million yuan, strategic investment of 14, about 200 million yuan.
ByteDance’s investment has accelerated significantly over the past two years. 2019 is the peak of its investment, the number of investments in the whole year reached 17, a total investment of 1.26 billion yuan, into 2020, its online literature, e-commerce, games, finance investment action frequently.
In February, ByteDance invested in MCN agency, Beijing Yitian New Network Technology Co., Ltd., which completed a Rmb180million B-round financing funding with an exclusive strategic investment by Byte Dance, and in April, ByteDance participated in the “India Edition Today Headline” Dailyhunt G round financing; and in July, Beijing Yitian New Network Technology Co., Ltd., a new shareholder behind the online literary platform Tower Reading, held a 18.9% stake in Beijing Quantum Leap Technology Co., Ltd.
Even Byte Dance has entered the new retail space. Earlier, Lazy Bear HotPot announced the completion of tens of millions of yuan in financing, ByteDance’s Quantum Leap Technology Co., Ltd. is an investor, holding 15 percent of the shares.
In TMD, Zhang Yiming and Wang Xing, founder of the American League, are believers in borderless expansion.
Wang Xing once said that there is no simple boundary between everything, the United States group does not set its own limits. In a 2016 conversation with Caijing, Zhang also mentioned that in the first half of the technological revolution, because the risks were so great that small teams needed to explore it, “but in the second half, the dividend smaller and the integration became a way to release dividends.” At this point, multi-business companies will have an advantage over a single business. “
At present, ByteDance mainly locked in the game, education, e-commerce three major sectors.
It is reported that within ByteDance, today’s headlines, sound, games, ZERO (education and new business), commercialization, e-commerce are all tier 1 business units.
Games have always been an important way for traffic platforms to realize. According to GameLook, ByteDance’s revenue in 2018 was 50 billion yuan, with gaming advertising revenue of about 15 billion yuan, contributing about a third.
Historically, Tencent, NetEase and others have entered the game with the advantage of traffic, and ByteDance began preparing for a few years ago.
It has registered game trademarks since 2014 and has so far registered more than 2,000 game trademarks.
In June 2018, today’s headlines officially launched the “Game of Today” module, including various game products and the content of the game from the media;
In 2019, ByteDance has developed and represented a number of mini-games and casual games, including “The Whole People Drift,” “Voice Ball,” “I Fly Knife To Play Thief 6”, “Elimination of Viruses” and other 13 mini-games have been featured on the iOS game free list TOP10.
In addition to taking a stake in Shanghai Moyu, Shanghai Net and other game companies, ByteDance also in Shenzhen, Hangzhou, Beijing, Guangzhou and other places set up more than a thousand people game team, the main game category includes MMORPG (multiplayer online game game) and ARPG (action role-playing class).
In June 2019, ByteDance launched the Oasis Project to begin self-study ingress.
In February 2020, ByteDance,the former head of strategic investment, Yan Yan, was in full charge of the gaming business; on March 17, a new gaming company called Amusement Technology was established to serve as a legal representative; in April, Yan was awarded the legal representative; in April, Yan said in a circle of friends that ByteDance was optimistic about the direction of the game and would be patiently invested; and in 2020, the gaming business would continue to recruit more than 1,000 people.
Two months later, Byte Dance’s Game of Fire and Ninja Match was the exclusive agent in China, and at the same time, Caesar Culture, which specializes in Mobile game research and development, AND IP reserve, signed a 10-year Strategic Cooperation Agreement with Dawn Light Year. It also means that ByteDance’s layout in heavy-class gaming is accelerating.
According to Late Late Post, ByteDance’s 2020 non-advertising game revenue (intermodal plus self-research, etc.) is estimated at between $2 billion and $3 billion.
In addition, Byte Dance may also be building an electric competition system. In mid-July, it was revealed that Feng Wei, a former senior director of Alibaba and one of the heads of the global e-sports competition, had joined ByteDance, who had previous experience in the operation of WESG Events (World ESports Games).
More than just the game, Byte Dance was also eyeing the education sector early on.
In June 2019, ByteDance’s internal architecture was restructured, and Chen Lin was no longer directly responsible for today’s headline products, but instead in charge of the innovation business.
According to 36kr at the time, Chen Lin’s next stage goal was to “run the third DAU for Byte Dance” outside of the sound and today’s headlines.
The area they are targeting is education, and Chen Lin is currently the head of the education business.
Investing in money is still an important means. Since April 2018, ByteDance has invested/acquired education products such as gogokid, Rest assured Family, Xiaoyang Education, AIKID, The Minerva Project, and Qingbei Net School.
However, in a recent interview with the education team, Chen stressed that ByteDance’s greatest advantage in education is not traffic, products and technology, but strategic determination and organizational culture.
ByteDance’s education department is named ZERO, which has two meanings: one represents innovation, from 0 to 1;
After taking the helm of the field of education, Chen Lin began to lead the team all the way to speed up, the momentum of great.
According to incomplete statistics, byteDance’s education-related products have more than 20.
ByteDance’s related education project mapping: 24/7 technology.
And these products are actually labeled on the market more well-known rivals.
ByteDance’s educational products and bids, pictured from The Teaching Andering Reference
According to Chen Lin, ByteDance’s education business is not considering profitability for the next three years.
In addition to games and education, After six years of exploring the e-commerce industry, ByteDance e-commerce has been placed in an unprecedented position.
In June, ByteDance made an adjustment to e-commerce, formally establishing a tier-one business unit named after e-commerce, and a new head, Kang Zeyu, reported directly to Zhang Lidong, chairman of ByteDance China.
Retrospective history can be found that ByteDance’s intervention in e-commerce was first dominated by diversion.
In July 2014, today’s headline launched its first e-commerce project, “Today’s Special Sale”, to direct third-party e-commerce platforms.
In 2016, the headlines reached a strategic partnership with JD.com to launch the “King’s Road Plan” to open a first-level shopping entrance for JD.com to help JD.com and its platforms deliver accurate advertising.
ByteDance really set up its own e-commerce platform, is the 2017 launch of the “rest assured purchase”, a year later, “rest assured purchase” has been adjusted, split into “rest assured purchase 3.0” and “rest assured purchase Luban” two product lines.
In 2018, ByteDance has also developed two e-commerce apps, Value Point, which focuses on Ping Duo Duo-style low-cost shopping, and New Grass, which is positioned as “a grass-growing community that young people love to shop for,” but has not gone well.
In the same year, the sound began to exert force on e-commerce, launched the “Select Good Things Alliance”, and with Taobao, the use of the e-commerce advertising system “Ruban” for its drainage.
In the past year, with the social e-commerce, live e-commerce and other new play popularity, e-commerce is back on the market. ByteDance’s pace in e-commerce is also starting to pick up.
In 2019, ByteDance will go online, headline shop, and sign a $7 billion annual framework agreement with Taobao, and since 2020, ByteDance will also open a series of moves such as the “Shake Shop” app, an online business management tool.
Up to now, Byte Dance has signed Luo Yonghao, and promote Chen He, Wang Zulan and many other stars in the shake sound with goods, with the intention of setting off a sound volume. According to 36Kr, this year’s GMV target for live-streaming e-commerce is as high as 200 billion.
There is a strategy, a path, and the right team. The most direct way is to dig people up heavily and on a large scale.
“To provide the best ROI (ROI), so we’ve been talking to hr departments that we want pay top of the market.” Zhang Asked the HR department to position market compensation at least once a year to keep ByteDance’s pay level ahead of the industry.
In addition to high pay, Zhang Yiming has also developed attractive incentives, such as increasing the proportion of year-end bonuses, “We said within the company, we hope that very prominent people will have the opportunity to get 100 months of year-end bonus.” “Furthermore, options are a long-term way for ByteDance to motivate talent.
Zhang Yiming believes that there will be a brave man under the reward. Such a strategy has been proven effective in today’s headline-grabbing. They used to spend 200 million yuan a year on headhunting.
Where to “hunt” talent? The muzzle is aimed at the internet giants. Today, most of ByteDance’s executives are brought in from other big companies.
ByteDance’s executive source, pictured, from the public hashtag “Sharp Record”
As ByteDance develops power in gaming, education, and e-commerce, its poaching targets are also targeting internet giants, and even the list is expanding.
In the gaming field, for example, byteDance’s head of the game department Yan Yan from Tencent’s strategic cooperation department; Wang Kuiwu, head of the creative team of its Beijing gaming department, is the former senior director of Perfect World, previously responsible for the two games “The World of God” “Wulin Exodus”; and its Shenzhen office is headed by the former Tencent Entertainment Game Product Manager Nato.
Meanwhile, byteDance Games Shanghai team was acquired from Sanyao, and the Hangzhou team came from NetEase’s original Pangu Studio.
An industry headhunter told All-Weather Technologies that many times ByteDance would give headhunters some advice in advance, identify which companies and who they want to talk about most, and point out the key goals directly.
And for this kind of target population, ByteDance also at the expense of attractive conditions. It is understood that Byte Dance has poached a head game factory’s core staff, on the condition that “double the annual salary plus an additional six-figure entry bonus.”
In 2019, NetEase’s gaming division was moved internally and its Pangu studio was disbanded. Insiders said that when they learned the news, people at the Director level of ByteDance used to invite the team to dinner and offer a price of 50 per cent or even double the original salary. Some of the gamers then joined the byteDance game Hangzhou’s game team.
Li Fei, a veteran game maker who left NetEase two years ago, said he also received an invitation from Byte Dance, the other side of the treatment is good, “3-5 years of work experience, can drive to 40-50 million yuan”, for the main planning producer level candidates more than 1 million annual salary, “but the requirements are very high, at least 4-3, 5-1 level of standard net-net-easy.” “
But Li Fei eventually turned down the invitation because “too much overtime, 996.”
He revealed that Byte Dance has poached a number of people from NetEase, including the Mobile Game team of Worldofher. The team is currently secretly developing a heavy Mobile game project inside the headlines in Guangzhou.
An employee from the head game factory revealed that ByteDance’s digs were all-round, digging up not only developers but also some back-office staff responsible for process and resource management, and even the marketing team, “everyone got a call from a headhunter.” “
In the field of education, the demand for byte recruitment is even greater. In the early hours of March 13, ByteDance’s head of education, Chen Lin, issued a micro-headline that ByteDance’s education business will hire more than 10,000 people this year.
A headhunter for ByteDance, a service, told All-Weather Technologies that ByteDance has released about 20,000 HC (Head Count) this year, “and the education line is hiring more quickly this year because the boss is emphasizing big business.” “
In the field of e-commerce, a headhunter noted that the big factories that e-commerce do well are the targets of ByteDance poachers. Take Shanghai as an example, hungry, public comments, Ali, etc. are the focus of the goal of digging.
HR, a cross-border e-commerce company, cites a two- or three-year master’s degree from his company that by Byte Dance was poached for 65K s.16. Byte Dance also dug up a product manager from hungry, his monthly salary skyrocketed from 15K to 50K, and promised 16.
Jeff, a former headhunter who has served Tencent, says they used to help Tencent poach from ByteDance, focusing on products, technology and operating the three sectors.
But in his view, Tencent’s poaching is far less aggressive than Byte Dance, one reason is that Tencent is a platform-based thinking, “for the whole business is not strong, the most do the hanging class it may provide a set of system a set of software.”
Another reason is that Tencent’s industry position dictates that it does not need to dig, and that “talent (naturally) will be used as a job-hopping target”. Tencent is also more critical of talent, “with a admission rate of only 3.5%, which is much more difficult than that of Tsinghua University.” “
So far this year, with the exception of Byte Dance, the HC of the major Internet companies has fallen sharply, and even the giants have almost blocked the HC.
This has led to a sharp decline in headhunting, and even a negative effect – “Since you don’t give me business, I’ll serve your competitors.” “
In this case, some headhunters began to switch to ByteDance services. Jeff revealed that some of Tencent’s departments may have been dug up by several headhunters, who still have their contact information, which allows headhunters to hollow out the entire team in a very short period of time.
Other big factories have fought back in the face of Byte Dance’s dig. In February 2017, a senior research and development engineer named Kang Zeyu left Baidu and later made headlines.
At the time, Baidu sued The Labor Arbitration Department for violating the competition agreement and allegedly stealing baidu’s trade secrets, demanding that it return the competition restriction sand and damages for breach of contract.
Finally, the Beijing Municipal Labor Arbitration Commission issued a ruling, asking Kang Zeyu to return, compensation for the competition restrictions and other costs totalling about 830,000 yuan.
But there are many ways to avoid a competing agreement. One Tencent insider said she knew that some employees, who had signed a competition agreement and eventually hid their job-hopping, were “probably not in the headline structure”.
ByteDance’s talent digs, in addition to working at the HR and headhunting level, are also superior in the employee push system.
ByteDance’s employees are the most motivated in terms of internal push at the Internet powerhouse. Whether it’s the pulse or the knowledge, The inside push code of ByteDance’s employees is flying in.
There are even employees specifically for the internal push set up WeChat group and public number, to provide the latest news, interview guide and other services. One person who is known to be a ByteDance employee says he has pushed 10,000 times.
The biggest motivation for employees is the generous rewards given by Byte Dance.
ByteDance employees revealed that the success of the internal push will have a cash reward, push success of a probably 2000-3000 yuan, even if the interview did not pass there are dozens of dollars of small red envelopes.
And the in-house bonus is still going up. Some headliners said that this year’s 2-1 level of internal push fees have increased from 3000 to 7500 yuan.
When some departments are severely short of people, employee pushing becomes mandatory and even rises to OKR (Objectives and Results, Enterprise Tracking Target Completion System).
The high salary, coupled with the company’s on-the-spot option seduction, makes ByteDance look like a giant magnet, constantly attracting people from all over the world.
This year, however, ByteDance’s pay in some positions has fallen, getting closer to the market average, with pay rising by about 30 per cent on top of the candidate’s previous job, thanks to a sluggish job.
In addition to digging staff, some of ByteDance’s products, such as Shake sound and watermelon videos, are also poaching creators at high salaries.
In March of this year, in order to start the live broadcast with goods, the sound of the sound dug up the network red man Luo Yonghao. The two sides are said to have been involved in a total of 60 million yuan, but officials have not confirmed it.
In mid-June, Up Master “Wizard Finance”, from Station B, announced that it was parting ways with Station B and switched to byte Dance’s watermelon video. According to anecdotal rumors, his contract with Byte Dance is worth up to 10 million yuan, the contract period is two years.
Watermelon video not only dig big UP master, small UP master even don’t let go.
Junior student Li Wei just started to do UP master for three months in The B station, mainly do digital content, fans only more than 1800.
Not long ago, he made a SUMMARy video of WWDC2020, which was recommended as a hot spot in the digital area of Station B due to its timely release, and received hundreds of likes in two hours.
Soon, business people from ByteDance came to the door. The other side invited Li Wei also went to watermelon video to open an account, and gave a one-time fee of 1000 yuan. “You don’t have to start video, just put the previous b station video back on.”
Headlines, sounding ceilings.
Byte Dance, which is in the process of firepower in several new areas, hides the growth “anxiety” behind it.
According to ByteDance, its main 13 products, including domestic products are: today’s headlines, shaking sound, shaking sound volcanic version, watermelon video, car king, GoGoKid, leather shrimp, flying book, Faceu, light camera. The three main overseas products are TikTok, Lark and Helo.
ByteDance’s main product, pictured, is from ByteDance.
Today, both traffic and revenue, today’s headlines and sound are two key pillars of the Byte Dance building.
According to the latest publicly available data, ByteDance’s full line of products total MAU (monthly active users) more than 1.5 billion, the number of monthly active users reached 518 million, today’s headline monthly number of about 263 million. The total was 52.1 per cent.
As a pillar product, shiyin, today’s headline compared to Tencent’s WeChat, QQ and Ali system taobao, Alipay in the number of active users still have a big gap.
Tencent’s Q1 2020 financial results show that WeChat and WeChat combined 1,202.5 million accounts and QQ monthly active accounts amounted to 693.5 million.
Ant Financial has previously noted that Alipay has more than 900 million monthly workers in China, while Alibaba’s earnings also show that Taobao has 846 million monthly active users.
According to the 2020 Q1 Mobile Internet Industry Data Research Report released by Aurora Big Data, ByteDance is less than 80% of the app installation stake from Tencent and Ali.
On the revenue level, ByteDance raised its revenue target to 120 billion yuan in 2019 from 100 billion yuan, up more than 140 percent from $50 billion in 2018.
In 2019, according to Caixin, the company will account for 60-70 billion yuan. This means that Shake Sound, as ByteDance’s revenue engine, contributes more than half.
But today’s headlines and quivering are or are about to hit the ceiling.
In June 2018, at a media conference, Shiyin announced that its daily average active users have exceeded 150 million, with more than 300 million monthly active users.
By the end of December 2018, the 2018 Shake Big Data Report showed that the number of daily active users in China had exceeded 2. 500 million, more than 500 million monthly users.
In other words, in just six months, the number of monthly active users has increased by 200 million, with an average monthly increase of 33.33 million.
According to QuestMobile, the number of monthly active users in March 2020 will reach 518 million.
This means that in the 15 months from the end of 2018 to March this year, the number of users of the monthly number of live is only 0.18 billion, with an average monthly growth rate of only 1.2 million, a much slower growth than before.
According to Li Xiang, a former operator, the growth of the sound is almost hitting the ceiling.
ByteDance’s starting products are facing a double-sided clampdown from Tencent and Baidu today, and are becoming increasingly tired.
Tencent’s public disclosure of an advertiser’s report shows that Tencent’s focus in March this year reached 240 million.
On May 13, Baidu announced at the “Vientiane” 2020 Baidu Mobile Eco Conference that the current Baidu App Day Has exceeded 230 million, the number of creators of 100 households has exceeded 3 million.
Meanwhile, today’s headline app’s Daylive has been virtually stagnant for growth over the past two or three years.
In 2017, according to the media “Kai” reported that today’s headline financing data shows that today’s headline-grabbing daily users have reached 120 million.
For the rest of 2019, that figure is still at 120 million.
On August 1, 2019, the Giant Engine Business Computing Center released its latest “2019 Today Headline Value Report”, which revealed that today’s headlines were nearly 120 million and headlined 1.6 million plus.
Today’s headlines lag behind friends and businessmen in terms of day life and the number of creators.
In addition, today’s headlines have not been publicly announced for a long time, and there is speculation that its user growth has stalled.
According to questMobile, a third-party agency, Tencent News had about 307 million users in April 2020, with about 263 million headlines today. This data is not only far inferior to WeChat, Alipay, QQ and other super-apps, but also less than the same brother shake sound.
As for today’s headlines lagging behind Tencent News, a source in The byteDance media business argued that the main problem was that ByteDance was not as good as Tencent in terms of resources that could be mobilized, and that she believed Tencent had a portal base for years.
Some in the media blame today’s headline-grabbing ecological problems , which are less rewarding for the content industry and its contribution to the content industry’s ecological prosperity than the huge benefits it has made in the content industry, and its information stream content is not fundamentally different from Baidu’s, and its users are struggling to break through the mainstream.
On many of today’s headline-grabbing channel pages, a large number of low-quality content is flooding it. On the contrary, many mainstream media with good quality reports have few content readings and comments.
Take mainstream media such as the Beijing News and the Southern Metropolis Daily, which have 6.52m followers in today’s headlines and 4.3m.
But our browsing revealed that most of the content they published was read in single or ten digits, and even some of the articles were read zero. This does not match their influence.
Most of the contents of the Beijing News and southern metropolis newspapers were poorly read on the headlines, and the pictures were taken from today’s headlines.
In the field of finance, science and technology media, “Chinese entrepreneurs”, “Tiger Sniffing”, “Economic Reference” and other well-known media reading volume is not optimistic.
Our statistics show that only a small number of these articles can read more than 1000.
Some financial, science and technology media today’s headline platform in the last 7 days reading volume mapping: all-weather technology.
In addition, the economic impact of today’s headlines is very limited for creators.
Because today’s headlines are based on the algorithm-recommended pattern, it’s hard for the headlines to gather fans for cash.
Some headline rsors say they are currently using the headlines as just one of many distribution channels, and what really brings them are WeChat’s public numbers, which are usually given to advertisers as a gift resource.
Byte Dance has also made frequent personnel changes to today’s headlines. In 2017, Zhang Yiming stepped down as CEO of today’s headliners, and Chen Lin took over in 2018 and Zhu Wenjia in 2019.
Meanwhile, today’s headlines are trying to make a strong push in the search. According to “Late Late Post” previously reported, Zhang Yiming said internally, without the expansion of the search scene and high-quality content, today’s headline growth space may be only 40 million DAU.
In 2019, ByteDance introduced Kai Wu, the former head of 360 search products, as head of search operations. In August of the same year, ByteDance’s search product, Headline Search, went live;
To attract and stick users, ByteDance has done more on the layout of content.
In 2019, ByteDance acquired Interactive Encyclopedia, launching a product called Headline Encyclopedia.
Previously, in May 2020, ByteDance’s wholly-owned subsidiary, Beijing Interactive Extreme Technology Co., Ltd., completed a 100% stake in Encyclopedia.
In the field of network literature, ByteDance has invested in a number of network literary content enterprises such as Tower Reading, Ding Sweet, Show News, And I Li.
For now, though, Byte Dance didn’t splash much water on the search.
Where is the new growth engine?
Next, ByteDance, if it wants to maintain high growth, needs to create a new growth engine in gaming, education and e-commerce, in addition to continuing to add code and expand user numbers and revenue on the headlines and today.
But these new businesses are not all plain sailing. In 2019, Byte Dance poached from established game makers, but hit the plate stop.
In April 2020, it was reported online that the ByteDance gaming business business unit had changed dramatically, the gaming business business had been cut, and some projects had been cut, and that it had just been fully responsible for byteDance’s gaming business.
In this regard, Yan gave a “disinformation”, and said Byte Dance is very optimistic about the game this direction, will be patient and sustained commitment. “With patience, the content industry is hard to monopolize.”
In the capital market, there are also analysts believe that, compared with Tencent to get the advantages of the game, ByteDance in the short term is difficult to break through, need to catch up for a long time.
According to a research report by Guojin Securities, ByteDance’s short-term ability to get the money, it is difficult to shake Tencent’s dominant position in the game field.
ByteDance has released two games that have underperformed, and in terms of revenue data, it lags behind Tencent’s performance even when compared with the same category that Tencent has released.
There are also game operators who believe that Byte Dance came in with huge amounts of money and traffic, similar to the previous Ali game.
Ali’s game has also invested heavily, but after several years of groping still did not make the ideal results.
Fearing that Byte Dance would repeat Ali’s game, some of the game’s big players were hesitant to face Byte Dance’s dig.
According to a Tencent game insider, when you get a headhunter call from Byte Dance in 2019, people will be excited about the high pay and are now basically cool.
In her impression, there aren’t many people around her who actually go to Byte Dance, and many of the early headliners have had general feedback, and even some people have passed and jumped back.
Li Fei, the previously mentioned NetEase game maker, believes that byteDance’s game line’s attraction to NetEase’s people is not too high, because the future is not clear.
On the other hand, NetEase for internal success projects, will also give a high bonus, to some extent to offset the temptation to dig corners.
In online education, ByteDance has been a failure in a number of projects in the last two years.
In April 2019, A year after Byte Dance’s first online education product, GoGoKid, went online, it was revealed to be in the off-the-go steam. Byte Dance responded that it was the company’s performance-based “de-fattening” of the team.
And the recent promotion of “Guagualong English” is also in the ape tutoring zebra English and other products hit the stage. From some user feedback, the former does not have much advantage.
In March 2020, Zhang Yiming said in an internal letter that he was not anxious and patient about the education market, “I think it’s still very early, and there must be more fundamental innovation in the education business, provided that we have a deeper understanding.” “
Chen Lin, head of education, recently stressed in an internal sharing, “We are losing money now, and our competitors are losing money.” But we’re also going to invest heavily in the next three years, and the education business is not going to be profitable. “
In the field of live e-commerce, Byte Dance is primarily facing competition with fast hands. At the same time as the sound of the sound burst the 200 billion GMV target, the fast hand will GMV currently to 250 billion, the two sides of the powder yinto.
Compared with the advantages of the fast hand has accumulated with the goods, the shake sound in the belt cargo is still in the downwind. In order to win market attention, shaking sound dug up Luo Yonghao, but since the start of the broadcast, Luo Yonghao opened low, all the way down.
A recent chart about Luo Yonghao’s “belt volume decreased by 97% and viewership decreased by 96.4%” was circulated on the Internet.
Luo Yonghao in the sound of live with the cargo data trend chart, the picture from the network.
In the field of live broadcasting, there is currently no super-anchor to get the hand.
According to a June list called “Live E-Commerce Host GMV Monthly List”, the top 50 anchors of live telecommerce, Taobao anchors on the list of 28 people, fast-hand anchors on the list of 19 people, shaking sound 3 people, Taobao and fast-track anchors each occupy half of the wall, while Luo Yonghao ranked 47th.
The GMV leaderboard will be broadcast live in June 2020, with pictures from the network.
“It’s still quite ambitious.” Li Xiang said, but at present Taobao, JD.com, Ping Duo Duo and other large e-commerce platform situated, consumers will think of these platforms in the first time, and the sound is still scene-based shopping, two types of e-commerce-oriented, if you want to squeeze into a category, a long way to go.
(Jeff, Fei Li, Li Xiang are pseudonyms)