- tech360.tv
Bilibili Targets Collaboration with E-commerce Advertisers to Drive Growth at Video-Sharing Platform
Bilibili adds cross-platform links to Taobao and collaborates with Pinduoduo and JD.com. Narrowed net loss by 36% in 2023, with a 3% increase in net revenue. Bilibili's ads business generated 6.4 billion yuan in revenue, up 27%.
China's popular video-sharing platform, Bilibili, is aiming to boost its revenue by partnering with e-commerce advertisers. The platform has recently added cross-platform links to Alibaba Group Holding's online shopping platform, Taobao, in an effort to attract more of its 100 million daily active users (DAUs).
Bilibili, which has been operating at a loss since its Nasdaq debut in 2018, has placed Taobao Live advertisements on its homepage. These ads allow users to directly access the shopping platform with just a click. It's worth noting that Alibaba owns the Post.
In addition to the collaboration with Taobao, Bilibili has also teamed up with Pinduoduo, enabling its users to access the budget shopping platform through coupons provided by PDD. Furthermore, Chinese e-commerce giant JD.com has reportedly placed ads on Bilibili's homepage, as per local media reports.
Despite its financial challenges, Bilibili managed to narrow its net loss by 36% to 4.8 billion yuan (US$641 million) in 2023 compared to the previous year. The company's net revenue also saw a 3% increase, reaching 22.5 billion yuan.
Bilibili's ads business generated 6.4 billion yuan in revenue for the year, marking a 27% growth. The company attributes this growth to improved product offerings and enhanced advertising efficiency.
Known for its popularity among Chinese millennials and Gen Z, Bilibili recorded over 100 million DAUs in the fourth quarter of 2023. Users spend an average of over 95 minutes per day on the platform, making it an attractive space for monetization through product placements and collaborations with e-commerce advertisers.
During an earnings call with analysts, Sam Xin Fan, Bilibili's Chief Financial Officer, highlighted the platform's deepened collaboration with e-commerce advertisers. Fan mentioned the integration of direct sales conversion tools into video and live commerce ad products, which has resulted in improved accuracy and efficiency of ad recommendation algorithms. In 2023, the number of users engaging in consumption-related behavior increased by over 200% year-on-year.
While Bilibili has become one of China's largest video platforms, it continues to face profitability challenges. However, Fan expressed optimism about the advertising business in 2024, stating that there is "great potential" and "ample room for growth." Bilibili plans to further integrate ads with its content ecosystem in a more native, natural, and seamless manner.
Initially known for hosting an annual anime-themed event, Bilibili has shifted its focus in recent years due to the rising popularity of domestic anime-style games and increased scrutiny of foreign materials. The event now showcases domestic content, replacing Japanese-made content that has faded from view.
Bilibili adds cross-platform links to Taobao and collaborates with Pinduoduo and JD.com
Narrowed net loss by 36% in 2023, with a 3% increase in net revenue
Bilibili's ads business generated 6.4 billion yuan in revenue, up 27%
Source: SCMP