BEIJING, Sept. 7, 2021 /PRNewswire/ — Joy Spreader (HKG:6988, “the Group”, “Joy Spreader”) recently announced its interim results for the first six months ended June 30, 2021, during which the firm achieved revenue of HK$624 million (approx. US$79.8 million), an increase of 62.37 per cent from the same period of the prior year. The growth was directly driven by the efforts made by Joy Spreader to increase the number of covered marketing points of short-form videos as well as to raise the average gross merchandise value (GMV) of products and services sold via this method.
Joy Spreader, one of the leading mobile new media performance-based marketing technology companies in China, provides intelligent product selection services to mobile new media content publishers, and intelligent forecasting services to corporate clients. Using hyperlinks as the medium, Joy Spreader helps clients achieve their marketing goals by placing their products (e-commerce products, games, e-books, mobile programs and applet-based promotions) at covered marketing points on mobile new media channels (such as shop window and shopping cart on the immensely popular Douyin platform and the menu bar of WeChat official accounts) for Internet users to purchase or download.
Joy Spreader bases its fees on transaction value, conversion volume and other performance indicators. The Group has opted for a cost-per-sale (CPS) approach, choosing it as its main business model. During the first half of 2021, CPS-based revenue accounted for 92.71 per cent of the total.
The revenue derived from CPS was directly related to the GMV of the products placed during the half-year period.
* GMV of the products placed = the number of active locations × average GMV of the locations.
In order to grow the number and variety of covered marketing points, Joy Spreader made arrangements to have access to a vast number of marketing points on popular mobile new media platforms such as Douyin and WeChat official accounts, as well as through organizations that bring together new media content publishers (such as agencies and multi-channel networks).
As of June 30, 2021, the number of covered marketing points within the Group’s marketing ecosystem had climbed to 1,561,601, up 208.65 per cent from the same period of 2020. By optimizing the algorithm models, improving the accuracy of media profiling as well as enriching the product library, Joy Spreader has improved the conversion rate from standard placement to active marketing points. As of June 30, 2021, the number of active markeing points included in the Group’s marketing ecosystem had risen to 689,512, up 126.32 per cent from the same period of 2020.
At the same time, Joy Spreader has increased the average transaction value per marketing points by raising the average amount of turnover that changes hands in each transaction as well as the average number of transactions during a given period. Average GMV of the products placed during the half-year period showed a YoY rise of 10.10 per cent to HK$3,504 (approx. US$448.50). Averaged GMV of active marketing points on the Douyin platform also showed a YoY rise of 15.24 per cent to HK$9,920.44 (approx. US$1,296.8).
Thanks to increased GMV and improvements across all key performance indicators, GMV of e-commerce products rose 264.08 per cent to HK$647 million (approx. US$82.8 million) in the first half. At present, growing the network of covered marketing points for product placement is the focus of Joy Spreader’s development plan. The Group plans to use its experience in acquiring access to premium locations on media platforms in China to serve as a model for and drive the growth of its overseas business.
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SOURCE Joy Spreader Group Inc.
