In China, Bilibili is hailed as the “YouTube of China”. It is a comprehensive video platform loved by young people.
What is Bilibili？
Founded in 2009, Bilibili started with ACG (Animation, Comics, games) culture. Now, it has developed into a platform covering a wide range of content. Bilibili’s user base is mainly young people, mostly born in the 90s and 2000s, with high user loyalty.
The main content includes animation, music, games, dramas, live streaming, and user-generated videos. Its unique “Bullet comments” culture attracts a large number of loyal users.
Unlike other video platforms, Bilibili adheres to the principle of “no pre-roll ads”. This greatly enhances the viewing experience. Users can fully enjoy video content without the interruption of ads, which also creates a favorable environment for native brand placements.
I. Main Sources of Revenue for Bilibili
Despite its popular user base and content, Bilibili’s revenue model does not rely entirely on ads. The revenue mainly comes from:
- Value-added services:
Including membership subscriptions and virtual gifts, where users pay for a better viewing experience and privileges.
- Games:
Bilibili operates several popular games, contributing significantly to its revenue.
- Advertisements:
In recent years, the advertising business has grown rapidly, especially in brand and performance ads.
- IP derivatives:
Selling products related to popular content also brings considerable income.
II. Strategies in Advertising for Bilibili
For a long time, advertising was not the main business for Bilibili. The platform was concerned that ads would interfere with the user experience. Compared to B2B clients, Bilibili preferred to earn directly from C-end users. Until 2018, with 87 million monthly active users, Bilibili started to prioritize its advertising business.
1.The rapid growth in advertising for Bilibili
The rapid growth in advertising is due to two factors:
- Bilibili Benefits from a Dense and Profitable Ad Market
- Bilibili Learns from Douyin’s Internet Ad Growth Path
Additionally, advertising is easier to manage than other businesses (like e-commerce and games), offering quick returns and high margins.
However, implementing advertising is not easy. The Chinese digital ad market is highly competitive. Advertisers are more knowledgeable about marketing, demanding not just exposure but also engagement and conversion rates.
2. Strategies in Advertising for Bilibili
To increase ad revenue, Bilibili has adopted several strategies:
- Increasing ad inventory:
This can be understood as the total number of ad spaces available on Bilibili. For example, Bilibili has added homepage ads.
- Improving ad load rates:
Currently below other platforms, with room for improvement.
- Raising ad prices:
Bilibili’s core user base is highly valuable, with a CPM (Cost per thousand impressions) much higher than other platforms.
3. E-commerce in Bilibili
In advertising, e-commerce ads are crucial for improving efficiency on Bilibili. E-commerce ads are immediate and allow clear ROI measurement. They optimize strategies with real-time data feedback. E-commerce ads create a good consumer atmosphere on Bilibili, attracting more ad budgets.
Thus, Bilibili actively collaborates with e-commerce platforms. Bilibili opens up its platform model. This attracts significant ad budgets and new clients from e-commerce platforms, achieving mutual benefits. During this year’s 618 shopping festival, Bilibili obtained 30% of its ad budget from external e-commerce platforms, quickly achieving commercialization goals.
III. How International Brands Can Market on Bilibili?
For international brands aiming to enter the Chinese market, Bilibili offers an excellent marketing platform. Effective strategies include:
- Native advertising:
Collaborate with Bilibili’s content creators to integrate ads naturally into videos.
- Live commerce:
Use Bilibili’s live streaming feature for product demonstrations and sales. Live commerce allows real-time interaction with users, increasing conversion rates.
- Brand advertising:
Place brand ads on Bilibili with precise targeting and high CPM slots to enhance brand awareness.
- Event marketing:
Participate in Bilibili’s annual promotions (like Double 11, 618) to leverage high traffic and boost product exposure and sales.
As one of China’s most popular video platforms, Bilibili has a unique user base and rich content ecosystem, offering vast opportunities for brand and performance advertising.
By understanding Bilibili’s advertising growth strategies and the boost from e-commerce ads, international brands can seize this opportunity, leveraging Bilibili’s platform advantages to successfully expand into the Chinese market.
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