Creating User Content Could Be Key To Social Media Loyalty

Social media is rapidly changing, and one China-based provider believes it has the tools to continue making itself popular with younger people and, by extension, continue to increase its revenue and profits.

By focusing on allowing its predominantly Gen Z users to create their own audio and video content and by replicating its successful regional model in other select markets, Newborn Town Inc. (HKG: 9911) claims it has an approach that is different from more-established social media players such as Meta Platforms Inc. META or dating site companies like those offered by Match Group Inc. MTCH.

Allowing users to create content and establish connections with like-minded people is meant to ensure that users can stay within the social media app Newborn Town provides rather than seek additional connections in other media outside of an original choice, the company says. Think for example of Facebook users subsequently navigating to WhatsApp.

Dating apps similarly fail to allow for connection through their inherent lack of content creation, Newborn Town says.

And content creation is key for Gen Z users, according to the company. The company’s social products, which include MICO, YoHo, and Yumy, all take real-time audio and video interaction as their main content forms, providing users with “vivid, direct, efficient and immersive social experiences,” helping users quickly establish social relationships.

Regional Strength To Be Replicated

The company’s apps have strong regional ties with MICO, for example, starting out life in Southeast Asia and the Middle East/North Africa (MENA) region. YoHo, similarly, started in the MENA region.

However, both those apps have seen success outside of their original markets with MICO finding itself in the top 15 social media apps on Google Play in both the U.S. and Japan in the first half of this year, according to data.ai. YoHo, one of the top voice-based social platforms in MENA, has now branched out predominantly in Southeast Asia and is among the top 10 social media apps in 40 countries and regions.

Its other app, Yumy, has only been in existence for about a year but is in the top 10 Google Play social media apps in approximately 50 countries and regions.

By replicating its strong local presence in other select markets, the company says it hopes to be able to build on its success. In the first half of 2022, the company focused on high-value markets, including North America, Japan, and South Korea, to help build its brand outside of its original markets.

Its approach — focusing on content creation and market replication — may be working. 

On August 25, Newborn Town has reported its interim performance. Its first-half revenue has been up to RMB 1,374 million ($210 million), an increase of 32.3% year over year. Profit attributable to owners of the company has been reported as RMB 83 million, more than doubling from the same period last year.

Other more-established social media companies have faltered in recent results. Meta missed analyst revenue estimates in its latest quarterly results while Match Group reported lower revenues and member numbers than expected.

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Featured photo by Merakist on Unsplash