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Short-form videocontent is a craze which has swept social media and offers marketersthe best return on investment, according to HubSpot. So how are mediaand social media outfits capitalizing? This article discusses theissue in relation to Meta Platforms (NASDAQ: META) , AlphabetInc (NASDAQ: GOOGL) , Tencent Holdings (OTCMKTS: TCEHY) and QYOU Media ( TSX:QYOU ) ( OTCQB:QYOUF ) .
QYOU Media ( TSX:QYOU ) ( OTCQB:QYOUF ) operates as a media company, producing anddistributing content created by social media influencers, artists anddigital content creators on television networks, satellite television,over-the-top media and mobile platforms.
The company also manages influencer marketingcampaigns for major film studios and key household brands.
The company’s mostrecent earnings showed that revenue for the quarter ended 30 June 2022 came in at arecord of CA$6.88m, up by 163% compared to the same period in 2021.This represents the highest quarterly revenue in QYOU Media’shistory.
It’sanother quarter of enormous year-on-year growth from the business,which has developed a unique model to capitalize on the popularity ofshort-form video and the exciting opportunity on offer in India.
The unique offering isa blend of social media marketing and TV entertainment. QYOUMedia helps advertisers to connect with influencers on socialmedia, while also producing TV shows constructed from the most popularIndian social media stars’ short-from video content.
It’s a model whichensures simple creation of simple, cheap and engaging shows which arebuilding attractive audiences for advertisers to reach out to on fouralready thriving channels operated by QYOUMedia ’s Indian entertainment brand, The Q India.
The channels have foundsuccess so far, with The Q’s flagship Hindi language channel beingviewed by 113 million people per week, according to stats released in April.More is on the way too, with a new channel dedicated to videogames set for launch inSeptember.
MarkZuckerberg’s Meta Platforms ( NASDAQ:META ) operates as a social technology company. Thecompany builds applications and technologies that help people connect,find communities and grow businesses. Meta Platforms is also involvedin advertisements, augmented and virtual reality.
The social mediagiant’s most recent earnings showed that the company earned $28.8bn during its secondquarter, which constituted a drop of 1% compared to the same periodlast year. Additionally, net income was down by 36% at $6.7bn.
Meta Platforms is mostnotably seeking to capitalize on the popularity of short-form videothrough its Instagram platform. For example, the company isconsistently releasing new features for video-editing and sharing onthe platform.
These include the July announcement of the company’s enhancement of Instagram’s Reelsfeature with new innovations such as giving users the option topreload audio and clip placeholders to use as templates in new videosthey create.
However, the news from Meta Platforms’ short-form videotechnology is not all positive. Advertisers are reportedly struggling to get their heads around the Reels feature, which isavailable on Facebook as well as Instagram.
The company is evenurging advertisers to conduct tests using rival social media platformTikTok in order to optimise their content for the platform.
Alphabet Inc ( NASDAQ:GOOGL ) operates as a holding company and is headed bySundar Pichai. The business, through its subsidiaries, providesweb-based search, advertisements, maps, software applications, mobileoperating systems, consumer content, enterprise solutions, commerceand hardware products.
Alphabet Inc’s latest earnings update showed that its revenues climbed by 13% to $69.7bnin the three months ending 30 June. However, the same period saw netincome decline from $18.5bn in the second quarter of 2021 to$16.0bn.
YouTubeads revenue came in at $7.3bn, while the company gains further revenuefrom the video platform through subscriptions to its premium service.Like other social media and online media giants, the platform isattempting to get users hooked on its short-form video offering.
Alphabet Inc isachieving some here too, having notably attracted 1.5 billion users tothe YouTube Shorts feature. In order to encourage continued growth ofthe feature, the company put together the YouTube Shorts Fund.
This is a $100m fund for distribution over the course of2021-2022, which all YouTube Shorts creators are eligible for. Theidea is, at the end of each month the platform distributes funds tothe creators who have attracted the most views and engagement,essentially functioning as a reward for bringing new users to theplatform and keeping them Interested.
Alphabet Inc is clearly hoping that a creatorfirst stance will help them win the battle for supremacy amongshort-form video platforms.
Tencent Holdings Limited (OTCMKTS: TCEHY) ,helmed by Ma Huateng, operates as a holding company. The company,through its subsidiaries, provides social networking, music, webportals, e-commerce, mobile games, Internet services, payment systems,entertainment, artificial intelligence and technology solutions. Thebusiness serves customers worldwide.
The company’s most recent earnings showed that revenues had dropped by 3% compared to the comparablesecond period of 2021. Operating profits were also lower as thebusiness saw margins compressed.
This is the first drop in sales reported by thebusiness since 2008 and many investors appear concerned that Tencent Holdings Limited’s future prospects havebeen damaged by China’s struggling economy.
Though social mediausers and investors in the West might not be clued in, TencentHoldings Limited is another major player attempting to capitalize onthe growth of short-form video.
The company’s WeChat platform has short-formvideo functionality and with a total user base of more than 1 billion peopleTencent Holdings Limited has a huge platform through which it can pushthis content format.
However, with the parent company now showing a downturn inrevenues as well as its first reduction in workforce, WeChat might notbe destined to hold the throne as the top dog in China. Indeed, it’sworth noting that the business faces intimidating competition fromByteDance, the company behind TikTok.
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