Joy Spreader 2021 Results: Successfully Implements Multiple Marketing Services as Part of its Proactive Business Strategy
The new media performance-based marketing leader details its 2021 results at press conference
Joy Spreader Group Inc., a leader in new media performance-based marketing, held a press conference on March 21, 2022 to announce its financial results for 2021. At the conference, the management team outlined the Company’s operations and answered questions from securities analysts, journalists and investors regarding the financial results and strategic roadmap as well as related topics.
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The results showed that Joy Spreader maintained steady growth in 2021. For the reporting period, the Company booked operating revenue of HK$1.396 billion, an increase of 51.08% YoY. Net profit for the year stood at HK$245 million, an increase of 76.41% YoY.
Interactive entertainment and digital product marketing businesses achieved revenue of HK$960 million in 2021, a YoY increase of 19.43%. Among them, marketing services via short-form videos (SFVs) on e-commerce platforms in China posted revenue of HK$288 million, 2.43 times of that in 2020, while the new marketing service targeting overseas SFV e-commerce platforms achieved a significant breakthrough with sales of HK$148 million.
Notably, Joy Spreader made substantial progress in expanding into new fields while maintaining solid growth in its existing businesses. In September 2021, the Company signed a comprehensive strategic cooperation agreement with Poly Film, an entertainment and culture firm under the aegis of the Chinese central government, to co-develop and grow a content marketing business involving film, television, culture and entertainment. Based on this collaboration and Joy Spreader’s own content traffic accumulated over the past several years, the Company is preparing for entry into the new media brand marketing sector.
During the press conference, the management of Joy Spreader detailed the latest developments and future goals of each of its new businesses.
Joy Spreader has, for the past two years, focused on growing SFV e-commerce business overseas. The Company allocated a large portion of the R&D spend to the business, facilitating the rapid implementation of its new marketing services for the segment and creating an established business model for the new services.
The management team stated at the conference that Joy Spreader plans to continue expanding the overseas SFV e-commerce business in 2022 in a move to build advantages in data and algorithms. At the same time, the Company plans to further increase R&D investment in order to significantly increase the revenue and profit of the business by boosting sales and gross margin, with the 2022 annual revenue of the business estimated at HK$1 billion.
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“Joy Spreader is implementing its comprehensive collaboration plan with Poly Film, which is not limited to cooperation in the content marketing sector,” said Zhu Zinan, chairman, executive director and CEO of Joy Spreader. “In line with the country’s 14th five-year plan for the further development of a uniquely Chinese film industry, the two companies will leverage their respective advantages to jointly promote the digital transformation of the content marketing business involving film, television, culture and entertainment.”
“As part of its brand marketing strategy, Joy Spreader has begun monetizing its own traffic, which we call it 1P, from brand campaigns since the beginning of 2022 and made some progress in this regard although the Company in the past had mainly focused on performance-based marketing,” added Mr. Zhu. “To date, Joy Spreader has built a closed 1P marketing ecosystem for its own traffic encompassing traffic incubation and operation, brand marketing and e-commerce marketing while, within a short period of time, enabling creation of and support for its own 1P content in vertical markets.”
To cite an example, Joy Spreader’s multi-channel network Beijing CINE Vision Technology signed an exclusive new media cooperation agreement with Chinese short track speed skater Wang Meng in 2021. According to the agreement, CINE Vision is responsible for the management and promotion of her proprietary content across new media platforms. During February 2022 when winter sport became a hot topic, CINE Vision helped the famous skater build a dominant presence across major Chinese new media platforms, increasing the total number of personal SFV followers from just over 100,000 to more than 6 million. In addition, the winter sports special In the Name of Ice and Snow co-produced by Joy Spreader and Poly Film ranked among the top three trending topics for ten days in a row following its launch on multiple platforms, gathering nearly 1 billion views.
With the creation of its 1P traffic strategy, Joy Spreader has embarked on a brand marketing journey since the beginning of this year and has now established a commercialization unit reporting directly to top management. The unit is led by industry veterans who have nearly 20 years of experience in the field and are responsible for developing and managing business operations for the Company’s own traffic. The Company noted that the content marketing sector whereby companies monetize their 1P traffic is on track to grow gradually over the next two to three years.
The steady growth in Joy Spreader’s financial results in 2021 and the successful expansion of its new businesses demonstrate the Company’s outstanding capabilities in business operation and management as well as in market expansion. The proactive business strategy has paid off, and this has been reflected in the continuous expansion of the overseas SFV e-commerce business, the further implementation of its partnership program with Poly Film and the accelerated monetization of its own traffic.
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