MoonFox Analysis | Marketing Boosts Overseas Expansion - Insights from Leading Market Cases

Rhea-AI Summary

MoonFox Data, a sub-brand of Aurora Mobile (NASDAQ: JG), reports on the international expansion of Chinese non-gaming apps. Key insights include:

1. Over 1,200 active Chinese non-gaming apps in international markets as of June 2024.

2. E-commerce platforms lead in ad spend, with Temu focusing heavily on the U.S. market.

3. Short video apps are the second-largest category in ad spend, with DramaBox targeting Indonesia and the U.S.

4. Travel apps like Ctrip are seeing increased downloads, correlating with rising inbound tourism to China.

5. Performance marketing remains important for short-term customer acquisition, while brand marketing is gaining popularity among leading global platforms.

Positive

• Aurora Mobile's sub-brand MoonFox Data provides valuable market insights for international expansion
• Chinese non-gaming apps have reached a significant scale in international markets, with over 1,200 active apps
• E-commerce platforms like Temu show strong growth and high ad spend in the U.S. market
• Short video apps are successfully expanding internationally, with DramaBox generating over $46 million in the U.S.
• Inbound tourism to China is recovering, with a 152.7% YoY increase in foreign visitors in the first half of 2024

Negative

• Some sellers on Temu have faced losses, leading to refunds without returns and platform penalties
• MoboReels shows a decline in total ads volume, although still remaining high on the list

About us: Aurora Mobile (NASDAQ: JG) established in 2011, is a leading customer engagement and marketing technology service provider in China. Its business includes notification services, marketing growth, development tools, and data products. As its sub-brand, MoonFox Data is a leading expert in data insights and analysis services across all scenarios, aiming to help companies gain market insights and empower precise decision-making.

SHENZHEN, China, Aug. 27, 2024 /PRNewswire/ -- Non-gaming apps are a major focus for China's internet expansion abroad. According to MoonFox Data, as of June 2024, the number of active Chinese non-gaming Apps entering international markets exceeds 1,200, matching the gaming sector in scale.

China's non-gaming apps' international expansion has a long history. From the aspect of sectors, early international efforts were focused on practical tools and news apps, while current trends show strong growth in generative AI and entertainment apps; From the aspect of markets, it presents significant potential in Japan, South Korea, and Southeast Asia, with notable increases in downloads and revenue for apps like reading platforms in Japan and social apps in South Korea. Which products are currently leading the rankings given the combination of downloads and marketing investments? How has their customer acquisition strategies evolved?

I.    E-commerce: Broad Outreach, Focusing on Promotion, and Deepening Market Penetration in the U.S. 

E-commerce platforms continue to lead in advertising spend among non-gaming apps going international from China. Platforms like Temu, Shopee, and SHEIN consistently rank high in terms of ad volume, with some entering the Top 5.

Temu's U.S. Download Data (Late May 2024)
Date	Downloads (Times)
May 20	470,408
May 21	344,691
May 23	164,528
May 24	202,044
May 25	783,656

Data Source: MoonFox iApp

Data Cycle: May 2024

Temu, known as the "Overseas Version of Pinduoduo", focuses its promotional efforts heavily on the U.S. market, with a significant proportion of its users based there. According to MoonFox Data, from 2023 to July 2024, over 22.1% of Temu's downloads came from the U.S., the highest share, followed by Mexico at 11.3%.

In terms of advertising & promotion, Temu led with overseas ads volume of nearly 750,000 during the same period, far surpassing NewsBreak, which was second. On May 26, Temu added 120,000 new ads in one single day. In the U.S., Temu's ad content primarily featured native images and focused on platforms like Youtube, promoting messages like "Zero-cost Gifts" alongside low prices. This massive ad spend resulted in a significant increase in downloads, with daily figures exceeding 780,000 times.

Temu's slogan "Shop Like a Billionaire" quickly gained traction in North America. Coupled with its marketing efforts around high-profile events like the Super Bowl, Temu's overall strategy has proven successful. However, it is worth noting that while Temu emphasizes low prices and high-quality service, some sellers on this platform have faced losses, leading to refunds without returns, platform penalties, and deposit deductions. As Temu continues to expand, it must also focus on the long-term, healthy development of the platform.

II.   Short Videos: Refining Video Content, Localized Promotion Enhances Reach

Short video apps are currently the second-largest category in terms of advertising spend among non-gaming apps expanding internationally, following e-commerce platforms. Platforms such as DramaBox, ShortMax, and MoboReels are actively investing in ad content, with MoboReels showing a decline in total ads volume but still remaining high on the list.

Using DramaBox as an example, from 2023 to July 2024, Indonesia and the United States were the main contributing markets for its downloads, accounting for 18.9% and 16.0% respectively. The U.S. market, with its high ARPU (Average Revenue Per User), is a significant contributor to DramaBox's revenue, generating over $46 million, accounting for more than 50% of its total.

In terms of promotion, DramaBox has significantly increased its ad content, with over 20,000 ads placed by early July 2024. The ads include vertical videos and highlight edited short videos combined with content summaries to showcase high-quality content more intensively, boosting downloads. The primary target audience for DramaBox's ads is women aged 25-34, who make up nearly 30% of the audience. Content of short videos featuring female leads and storylines tends to have higher exposure.

Overall, short video apps tend to focus more on the content and type of materials in their marketing efforts. The selection of local actors, localized storylines, and localized translations can significantly influence the depth of material penetration in specific regional markets. With advancements in AI for face swapping, dubbing, and automatic editing, the international expansion of short video apps is expected to be accelerated, benefiting smaller studios and enterprises.

III. Travel: Sustained Investment, Long-Term Promotion Influences User Perception

Thanks to the Chinese policy of "144-Hour Visa-Free", many cities are opening up to more international visitors, leading to an increase in inbound tourism. In the first half of 2024, China's ports welcomed 14.635 million foreign visitors, a 152.7% YoY increase, gradually recovering to the levels before COVID-19 pandemic. On the platform side, Ctrip's apps ranks high in both downloads and revenue, with a substantial market share.

Ctrip's Downloads Data for Indonesia (Early June 2024)
Date	Downloads (Times)
June 1	10,847
June 2	9,386
June 3	11,101
June 4	11,021
June 5	16,248
June 6	16,993
June 7	19,218
June 8	14,420

Data Source: MoonFox iApp

Data Cycle: June 2024

Taking Ctrip app as an example, it has accumulated nearly 27 million downloads over the past year, with a relatively low market concentration. The Top 3 countries - South Korea, Indonesia, and Thailand - contributed 10.6%, 8.8%, and 7.8% of downloads, respectively, correlating with inbound tourist distribution.

In terms of promotion, Ctrip employs a sustained, long-term strategy. While daily new ad content is relatively modest, ongoing promotion using interstitial and reward video ads continues. In June 2024, Ctrip increased its investment in Southeast Asia, particularly Indonesia, using text & video content in Chinese Traditional to promote quick bookings for traveling in Hong Kong, significantly boosting downloads in Indonesia. Generally speaking, Ctrip has a wide range of advantageous resources, including budget hotels and discounted flights. Instead of focusing solely on refining diverse ad formats, the platform prioritizes multi-channel coverage to achieve higher frequency exposure.

The landscape of the global market is constantly evolving, with trends shifting rapidly, but marketing remains a crucial element that platforms cannot overlook. Significant differences exist across various sectors in terms of promotional materials, advertising methods, and presentation techniques. We believe that, on one hand, performance marketing will continue to be key for platforms to acquire customers in the short term. Targeted advertising that aligns with user attributes and usage habits will more effectively achieve user acquisition and conversion. On the other hand, brand marketing is gradually becoming the preferred choice for leading global platforms. More cost-effective image banners and interstitial ads are expected to regain popularity, with high exposure rates increasingly replacing high conversion rates as the key metric for advertisers to measure the effectiveness of their campaigns.

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•  Contact us:

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Title: Director of Sales, Industry Insight Division
Tel: +86 -13366276383
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Address: 608/F, Tower B, Wintrust Center, No. 1 Xidawang Road, Chaoyang District, Beijing, China

 

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SOURCE Aurora Mobile Ltd

FAQ

How many active Chinese non-gaming apps are in international markets as of June 2024?

According to MoonFox Data, there are over 1,200 active Chinese non-gaming apps in international markets as of June 2024.

Which app category leads in advertising spend for Chinese apps expanding internationally?

E-commerce platforms lead in advertising spend among Chinese non-gaming apps expanding internationally, with companies like Temu, Shopee, and SHEIN consistently ranking high in terms of ad volume.

What percentage of Temu's downloads came from the U.S. market between 2023 and July 2024?

According to MoonFox Data, over 22.1% of Temu's downloads came from the U.S. market between 2023 and July 2024, the highest share among all markets.

How much revenue did DramaBox generate in the U.S. market?

DramaBox generated over $46 million in revenue from the U.S. market, accounting for more than 50% of its total revenue.

What was the year-over-year increase in foreign visitors to China in the first half of 2024?

In the first half of 2024, China's ports welcomed 14.635 million foreign visitors, representing a 152.7% year-over-year increase.