In 2019, Bytedance generated more than 100 billion yuan in advertising revenue, of which more than 60 billion yuan came from Douyin.Even Kuaishou’s core income live, its revenue ratio is being surpassed by advertising.
It is not a good thing that advertising contributes more and more revenue to short video. The first thing is that the social content ecology is destroyed. Just like the ubiquitous but difficult to shut down hair transplant ads on Weibo, it is more “pulling weeds” for short video platforms that are trying to give themselves more social value.
According to the current data, the daily activity of Douyin is over 600 million, and the daily activity of Kuaishou is over 300 million. Combined with the user groups targeted by the tonology of the platform, these two figures, which are the envy of many Internet companies, also represent that the traffic of short videos has nearly reached its peak.
The external flow peaks and naturally falls on the internal ecology.At the present stage, the short video platform is trying to become a social platform to record life, and the live broadcast e-commerce that naturally integrates with the content is undoubtedly the best consumption scenario.
In the IPO prospectus of Kuaishou, the revenue of e-commerce business is only a few hundred million yuan, but in the first half of 2020, e-commerce GMV exceeded 100 billion yuan, and it is growing rapidly.
Bytedance, which has been trying out hydropower companies for a long time, has classified e-commerce as a strategic business through the channel of live broadcasting.Bytedance upgraded “e-commerce” to a tier-one division in June 2020.
Of course, e-commerce is not only necessary to solve the traffic anxiety, but also to revitalize the existing financial products.Bytedance currently has financial products such as “Rest assured to spend” and “Rest assured to borrow”. In addition to the basic financial licenses such as payment, securities trader and insurance broker, Bytedance has also obtained the small-loan license, one of the three most valuable licenses in the financial field.
Zhang Yiming may not be a cold financial, but the listing is imminent, so that the realization of good earnings imperative.
At the present stage, Bytedance’s e-commerce consumption scene has been set up. The primary role of Douyin Payment is to improve its e-commerce consumption link, improve user experience and avoid regulatory risks.
Before obtaining the license, short video platforms as e-commerce providers need to use third-party payment platforms to undertake payment services and face compliance risks, that is, supervision of the “two clear” mode, which is the focus of attention in the payment field.
The “two-clearing” mode means that an unlicensed institution makes payment through accessing a legitimate license-holding institution. Typical examples are: e-commerce platforms use their own accounts to access licensed payment institutions to aggregate user funds, and then settle the funds to merchants on the platform, which is the secondary settlement.
The e-commerce platform can conduct its own business without payment qualification. At this time, the money paid by the user belongs to the platform. However, if the user pays the merchant on the platform, the platform will collect the money before settlement, which will play the role of capital settlement.That is, the central bank explicitly banned the “two clear” mode.
Previously, Pinduoduo was suspected of “two clear” mode and received rectification notices from the central bank for many times. After getting the payment license, the problem was solved easily.So does Tik Tok Pay.