Absrtact: August 15, Sina Company and micro-blog company released the second quarter of this year's earnings. In the first quarter after the IPO, Weibo's performance was very strong, with a double growth in active users and revenues, with net revenues of $77.3 million trillion, a significant increase from a year earlier
August 15, Sina Company and micro-blogging company released its second-quarter earnings. In the first quarter after the IPO, Weibo's performance was very strong, with a double growth in active users and revenues, with net revenue of $77.3 million, a sharp increase of 105% per cent over a year earlier, and the number of active Twitter users (MAU) reaching 156.5 million at the end of June, up 30% from a year earlier, The number of active users (DAU) also rose 32% to 69.7 million.
With the push of Twitter, Sina's net revenue in the second quarter grew to $187 million trillion, a net profit of $16.6 million, more than previously expected. Mr. Chao, Sina's chairman and CEO, said that Weibo's second-quarter financial performance, steady growth in users and traffic, made significant progress in building social-business platforms and providing primary advertising to big brand customers. Meanwhile, Sina is building a new portal, leveraging brand and media clout to seize opportunities in the mobile and vertical sectors, and is making a difference.
Active Users Rose 30%
Micro-blogging results showed that the two-month microblogging active users and daily active users have achieved more than 30% year-on-year growth. As the number of active users continues to grow, the user activity of Weibo on the mobile side has also been improved. In June this year, the percentage of active users from mobile terminals reached 78%.
The continued increase in the number of microblogging active users, as well as the increase in the percentage of active users in the mobile end, mainly thanks to Weibo's increased outreach to mobile and two or three-line cities, as well as the expansion of collaboration with television interactive programs.
At present, micro-blog has been with the main mobile phone brand manufacturers in China to carry out strategic cooperation, in the two quarter of this year, microblogging more than 50% of new mobile device users from the mobile phone manufacturers and operators of strategic cooperation, while optimizing the client products for mobile users, especially the Android user experience, Weibo new user retention rate has been significantly improved , the average weekly retention rate of the new users in the main channel reached 50%. In the second half of the year, Weibo will continue to strengthen strategic cooperation with key channels and continue to invest in product research and development to enhance the value of Weibo to its partners.
In the cooperation of television programs, Weibo and CCTV media research company Sofres launched a micro-blog television Index to enhance the importance of micro-blogging interaction for Chinese TV program viewing; During the World Cup, Weibo teamed up with CCTV to create a cross screen topic for the first time in major sporting events, and at the same time, where did Weibo go with dad, China's voice, such as the most attention to the most popular variety show interactive cooperation, only June micro-blog to participate in the discussion of television topics on the number of users reached 27.36 million, television interactive topics of the scale of more than 1000. Interactive cooperation with television programs, on the one hand, enhanced the micro-blogging interaction rate, the promotion of micro-blog in the two or three-line city brand influence, but also let Weibo began to get more television brand advertisers recognition, initially set up a network interaction business model.
In addition, the two quarter's work on improving the user experience has further enhanced the activity of microblogging users. Weibo uses large data-recognition and user-reporting methods to expose the low quality, low interactive content, and spam marketing information that might otherwise be distributed to users. Under the action of the optimized strategy, the exposure rate of the low quality and low interactive content of the micro-boping platform was reduced by 35%, and the users ' reading micro-blog In the information flow increased by 14%. Currently this strategy has covered 1/3 of the day active user groups, and is expected to cover all active users in the second half.
Up to 39% of mobile end revenue
Earnings showed that micro-blog two quarter net revenue reached 77.3 million U.S. dollars, of which advertising revenue of 59.6 million U.S. dollars, year-on-year growth reached 105% and 99%, the growth rate is very strong.
Compared to the rapid growth of advertising revenue, in the determination of the future development of the mobile end of the income ratio, micro-blog advertising revenue from the mobile end of the proportion reached 39%, the chain of the last quarter grew 44%.
With the continuous improvement of commercial products, micro-blog has set up a brand-oriented customers, small and medium-sized enterprises, the complete advertising product system for the commercialization of the promotion lay a solid foundation.
In the second quarter, Weibo formally launched the Information flow advertising products "Brand Express" to brand customers. The product pioneered the communication model of friend relations, providing a richer form of microblogging display. After the target user sees the advertisement content and produces the interaction, the related micro-blog will continue to show the attention of the user's fans, help advertisers more comprehensive and diverse interaction with consumers, recently, l ' Oreal, Jaguar and other well-known brands have tried the product, and get more than expected results. In addition, in the face of growing customer demand, Weibo also launched the client boot advertising products "boot header", further reducing the brand customers in the mobile end of the threshold of advertising.
At the same time, Weibo is also speeding up the development of SME markets. With the continuous improvement of advertising bidding mechanism and the promotion of interactive rate, the second quarter of micro-bo small and medium-sized customers and advertising volume has maintained a chain of 2 digits above the growth. In the second half of this year, micro-blog will continue to optimize the flow of advertising and service mechanisms to optimize the network of agents, to promote the micro-BO marketing and service agents development.
In addition to enriching the advertising system, Weibo officially opened its offerings in April this year to create a marketing closure based on Weibo. As of July, micro-blogging has more than 5 million active users, micro-bo marketing closed-loop formation and the continued expansion of the payment of users, not only improve the micro-blogging business ecology, but also is expected to enhance the micro-BO mobile advertising effect. On a pay-as-you-go basis, Weibo will also set up trading closures in more vertical areas over the next two quarters, with features such as paid subscriptions and rewards from media users.
Portal transformation focuses on mobility and verticality
The spin-off of Weibo has also brought an opportunity for the transformation of Sina's portal business. The second quarter Sina portal business in the mobile and vertical areas of more investment, and hope that in 2014 further strengthen the investment in the above areas to adapt to users from the PC Internet to the mobile Internet transition process.
In the second quarter, Sina launched a micro-wealth in the field of Internet finance, selling high-quality financial products to individual investors. In addition, Sina and easy to live China joint venture, created the domestic first real estate financial service platform "'s", launched a peer-to-peer China real estate mortgage business. These investments will help Sina build competitiveness in Internet financial markets while making faster breakthroughs in the internet finance sector in the second half of the year.
The online lottery business has become another vertical market with strong potential in the two quarter. Sina's online lottery channel is one of the most popular lottery sites in China, and Sina has become the biggest shareholder in the country's leading online lottery company "Love Lottery". During the World Cup, Sina Sports lottery subscribers and lottery sales increased markedly.
"Under the current structure, we are committed to re building the portal business, leveraging Sina's brand and media clout to grasp the opportunities in the mobile and vertical sectors, which are making a difference, and we need to innovate more in the process of transformation." "Cao said that the transformation of the portal business will be through internal expansion, as well as through acquisitions, cooperation and seek external strategic partners in a variety of ways."