Naver's nervous cacao spear weapon, 'New Plus Friend'
The third-quarter earnings of Cacao, which provides Korea's No. 1 mobile messenger app and Korea's second-largest portal site, were released. Unlike other businesses in Cacao, which are enjoying good results, it is known that the advertising sector, which is the main profit model of the existing cacao, is sluggish. In a direction different from the growth of the company as a whole, cacao squeezed a knife to improve the performance of the advertising business that is growing.This is KakaoTalk's Plus Friend 2.0, 'New Plus Friend', which has been testing since last July. New Plus's friends are attracting market attention as a new platform to drive the growth of the entire mobile advertising market in Cacao.
Cacao's earnings are improving,
Anyone with the largest number of users in our country will get 'Kakao Talk'. KakaoTalk's provider, KakaoTalk, which is a national messenger app, posted its third quarter results on November 10th. Cacao's consolidated operating profit for the third quarter of 2007 was $ 30.3 billion, an increase of 87% over the same period last year. Sales increased 70.5% year-on-year to 391.4 billion won. This is far more than the market forecast of 29.8 billion won in operating profit and 379 billion won in sales.
▲ Melon's Loen Entertainment helped cacao's earnings improve
Cacao's third-quarter sales growth was attributed to 95.5 billion yuan in sales of sound source content of Loen Entertainment, which was acquired earlier this year, and 78.5 billion won in sales of the mobile game business. On the other hand, digital ad sales using KakaoTalk, the second largest portal site in Korea, decreased by 13.5% to 126.6 billion won from the same period last year. The task given to cacao, which is growing in the content business, should be seen as the situation that the advertising revenue of app kakaoTalk, the portal site securing the second largest number of users in Korea, .
▲ There is a need for the development of new advertising products.
Cacao said it will boost its performance by following up on portals in the content sector and restructuring its advertising products. The plan is to continue the growth trend in the fourth quarter and next year. If so, what is cacao preparing for advertising, which is a mobile device-oriented advertising product that has become the mainstream of modern times? Cacao is now introducing Native Advertising and 'Nu-Plus Friends' as a main weapon to improve the performance of advertisements, which will be displayed in the channel area of KakaoTalk, which has 26 million monthly active users (MAUs) .
New advertising products in KakaoTalk
Messenger App KakaoTalk, which plays a dominant role in the market in Korea, has an overwhelming share of 95% in the messenger market. In fact, most of the smartphone users in Korea are mainly using KakaoTalk, and other IM apps are used only as an auxiliary means of KakaoTalk. However, KakaoTalk, which has such a high market share, does not yet have a proper advertising product.
▲ Mobile game 'Sword and magic'
As is well known, the main revenue source for KakaoTalk is games. KakaoTalk is generating revenue by receiving a portion of the revenue generated by apps that have built a platform for playing cacao games. However, the dominance of playing cacao is different from that of the smartphone game market. Unlike in the past, when the cacao platform was another word for mobile gaming market success, most gaming companies are still in decent cacao. There is a growing awareness that even if you do not use the cacao platform, you have a variety of channels to advertise and generate revenue for your games, and that you do not need to use a cacao game to share some of your sales.
▲ Advertising is responsible for half of the bigger cacao
With the growth of the mobile game market and the creation of astronomical profits, Cacao proceeded to merge with the portal to acquire: However, the advertising business is responsible for 50% of the current sales of cacao, which is one of the following. Cacao is not convinced of success, and it is increasingly voicing the need to develop advertising products that can generate more stable sales, rather than a game that is constantly shrinking in size. O2O new businesses, which are continuously invested by cacao, are also failing to break through the sluggish earnings. To overcome this situation, KakaoTalk 's New Plus friend is an advertising product of the cacao spy who has been testing since the release in July.
Plus friend plus yellow id
Cacao's New Plus friends can define corporate and personal content providers as delivering content tailored to their interests, and users selectively serving content. Cacao will expose its content providers through the Cacao channel in line with the user's individual preferences, thereby generating advertising revenue. Cacao currently offers content providers' content in the 'channel' area, which is the third tab of KakaoTalk, as a friend, and various partners, including media companies, are now naming content providers. New Plus friends are now being offered to users as a kind of mobile news curation service.
▲ Plus cacao friend to drive the future of mobile advertising business
A friend of New Plus can understand KakaoTalk's marketing platform, which was released in January 2011, as a friend plus upgrade service. When a user adds a content provider as a friend, the contents updated through the dialogue window of Cacao are announced in the form of dialogue and are displayed on the Kakao Talk channel. This is a feature of the existing KakaoTalk Plus friends, Yellow ID (released in August 2014) that allows users who have made friends to communicate and send push messages (alarms) It is a combined form.
Many companies already use their friends as marketing tools.
The Kakao Talk channel, filled with new plus friends, reminds me of Facebook pages at first glance. If the user "likes" the page he / she is interested in, it is similar to the Facebook timeline in which the content of the newly posted interest page is exposed in the user's timeline. New Plus friends can also post or comment on posts on the Channels tab, like Facebook, or share posts on KakaoTalk Messenger. Already similar products have been serviced through lines in Japan and in China through Wit Chat, and have also performed significantly. New Plus Friends of KakaoTalk will be able to achieve high results based on the pool of KakaoTalk users and will also have a big impact on the overall service of Cacao by linking with O2O of Cacao.
Cacao change begins
There are three main points that cacao suggests through the new plus friend service. One is that KakaoTalk itself is not simply staying as a mobile messenger service, but is moving toward a full-fledged social network service (eye) and portal to content distribution. Looking at the content that is provided through KakaoTalk's channel, KakaoTalk should be defined as an SNS that can actively receive news through the timeline and can be easily shared, not just a messenger. In addition, it is also meaningful that the platform provider does not intervene in the content providing method through the algorithm of its own, apart from the way in which a person artificially chooses such as Naver. When people engage in editing, the resources of the manpower increase excessively, the issue of equality depends on the frequency of exposure by media, and the subjective inclination of content exposure tendency is a problem. Since cacao measures individual interests and popularity and exposes them to algorithms, it can be fairer than the way people edit it, minimizing unnecessary and uninformative information for each individual.
▲ Emoticon present, etc. Cacao is also willing to advertise new plus friends
The second is the change in attitudes of cacao to content providers. This can be seen from the fact that the links provided by New Plus friends allow outlinks. When a user clicks on content provided through a new plus friend, the user moves (outlinks) to the area of the content provider rather than moving (in-link) to another area or next location in the kakao chat. This means that the traffic generated by the content provided through New Plus friends is not attributed to the cacao but belongs to the content provider. This outbound link is expected to cost between two and three million clicks, so content providers will have a lot of investment and focus on cacao. Considering that existing domestic portal services have avoided outlinks and recommended inlinks, an unusual cacao policy can be evaluated as the franchise of the first mobile messenger for co-existence with content providers. These policies are expected to be a stimulus for Naver, and new policies for content providers and media companies will be prepared at Naver.
▲ Can New Cacao create new value through friends?
Lastly, one thing is that Cacao's mobile advertising market has been fully launched. Cacao has been a passive player in the advertising business through KakaoTalk, and has failed to achieve the right result in the advertising business using the portal. The following mobile network advertising product 'Adam' is also unfavorable. In the early days of the smartphone market, investing strategically in mobile services and earning a lot of success has failed to maintain its initial momentum. Cacao is now poised to re-establish its position and remove its most powerful weapon in the mobile advertising market.