How short-video apps changed the advertising game in China

Since the launch of TikTok – called Douyin in China – in 2017, short videos have become the new obsession of Chinese internet users. For the first time, people are spending more time watching short videos than longer content. Case in point, internet users are 1.5x more likely to watch online video on mobile devices.

Photo credit: Aaron Yoo

It quickly became one of the significant ways that Chinese netizens shared information. Today, short-video apps are among the most-used daily apps in China.

The reason is simple: They provide a new choice for people and fits their quick pace of life. That’s why most online advertisers in China put short-form video apps at the forefront of their marketing strategy – they’re a cost-effective way to interact with consumers.

Now that TikTok has overtaken Facebook to become the world’s second-most downloaded app, short videos have become a staple for online advertisers to market brands.

Data shows that online advertising revenue of short-video platforms grew by 43% in 2019, compared to the average annual growth of 18% across platforms. In 2020, short-video advertising trends continue to show strong gains in the Chinese marketplace.

Why is it worth investing in short-video apps?

According to the China Netcasting Services Association, short-video app users occupy more than 74% of those on mobile. In the country, the total number of people who use short-video apps stood at over 820 million in 2019. This means that roughly 7.2 out of 10 mobile users have at least one short-video app on their devices.

This data is reasonable since TikTok, the most popular short-video app globally, has more than 400 million daily active users in mainland China. On the other hand, the platform’s major rival, Kuaishou, hit 200 million daily active users.

These companies leverage this massive opportunity with more features (stickers, filters, etc.) and campaigns to keep the excitement and make their users stick around.

For example, TikTok’s Hashtag Challenge is one of the most central engagement drivers on the platform, urging its users to post videos to participate in fun tasks. Meanwhile, Kuaishou makes use of its service with livestreaming features for users to build a more inclusive community.

Other apps like Meipai and Weishi are also keeping up by adding more endearing stickers and effects to appeal to its younger demographic.

The revenue of China’s short-video market reached US$6.6 billion in 2018, and that’s expected to double in size to US$11.8 billion this year.

But what makes online advertising on short-video apps effective?

Shorter attention span

How online advertisers make the best of short-videos apps

Short videos: the next frontier for advertising in China