Reports

Mobile instant messaging (“mobile IM”) has become a key battleground for control of China’s internet services market. The country's rapid growth in mobile internet usage, coupled with a smartphone user base exceeding 500 mln, has precipitated a new wave of smartphone-only mobile IM services which can be directly monetized or used to channel mobile internet traffic to other mobile properties.

China's smartphone mobile IM apps are in the early stages of monetization, first implementing revenue models proven successful on PC IM platforms, and also introducing a number of new business models with strong growth potential. Leading monetization of the space is Tencent's WeChat, which began rolling out a series of value-added services and WeChat-integrated mobile games in late Q3 2013. As WeChat dominance of China's mobile IM space grows, a number of smaller apps are fighting to carve out niche positions, focusing on areas like friend-making and interest groups.

Released May 30, Marbridge's 2014 Mobile Instant Messaging Market Report provides investors, advertisers, and mobile industry enterprises a detailed, 59-page overview and analysis of the Chinese mobile IM sector. The report is based on interviews with mobile IM developers, ad agencies, and investors, secondary research, and empirical evaluation of each of China's leading mobile IM apps.

Highlights include:

• Market Size & Growth Drivers - Size of China's mobile IM user base, and analysis of current and future growth drivers.
• Strengths and Weaknesses - Assessment of strengths and weaknesses of 8 of China's leading mobile IM apps.
• Revenue Models - Examination of current and planned revenue models across China's leading mobile IM apps.
• Revenue Estimates - Monthly and yearly revenue estimates for WeChat and Momo.
• App User Figures - User figures for each leading mobile IM app, based on both company data and Marbridge estimates.
• Advertising Opportunities - Potential advertising opportunities on China's major IM apps, as well as examples of select WeChat ad campaigns.
• Regulatory Risks - Analysis of potential regulatory risks facing China's mobile IM platforms, including both those related to content control and claims of unfair competition by China's telecom operators.

TABLE OF CONTENTS

• 1 Executive Summary
• 2 Market Overview
  • 2.1 Mobile IM User Base
  • 2.2 IM Market Development in China
    • 2.2.1 PC IM to Feature Phone IM
    • 2.2.2 Smartphone IM Development
    • 2.2.3 Monetization
• 3 China's Leading Mobile IM Apps
  • 3.1 WeChat
    • 3.1.1 Basic Features
    • 3.1.2 Development & Growth
    • 3.1.3 Monetization
    • 3.1.3.1 Monetization: First Stage
    • 3.1.3.2 Monetization: Official Accounts
    • 3.1.3.3 Monetization: WeChat Pay
    • 3.1.4 Third-party Advertising
    • 3.1.5 Overseas Expansion
    • 3.1.6 Relationship with Telecom Operators
    • 3.1.7 Regulatory Risks
    • 3.1.8 WeChat Revenue Figures & Forecast
  • 3.2 Mobile QQ
    • 3.2.1 Users, Features & Growth
    • 3.2.2 Monetization
    • 3.2.3 Life Services Platform
  • 3.3 Momo
    • 3.3.1 Users, Features & Growth
    • 3.3.2 Defensible Niche
    • 3.3.3 Monetization
    • 3.3.3.1 Monetization: In-app Services & Games
    • 3.3.3.2 Monetization: Planned Features, Advertising
    • 3.3.4 Overseas Expansion
    • 3.3.5 Funding & Future Development
    • 3.3.6 Momo Revenue Figures & Forecast
• 4 Second Tier Mobile IM Apps
  • 4.1 Fetion
    • 4.1.1 Users, Features & Growth
    • 4.1.2 Future Development
  • 4.2 Laiwang
    • 4.2.1 Users, Features & Growth
  • 4.3 YiChat
    • 4.3.1 Users, Features & Growth
  • 4.4 MiTalk
    • 4.4.1 Users, Features & Growth
  • 4.5 Line
    • 4.5.1 Users, Features & Growth
• 5 Key Takeaways