Morketing was informed that on September 8, Station B released its financial report for the second quarter of 2022 as of June 30. According to the financial report, the total net revenue of Station B in the second quarter was 4.9 billion yuan, an increase of 9% over the same period in 2021. Among them, advertising revenue was 1.158 billion yuan, an increase of 10% over the same period in 2021.

However, in the first half of the year as a whole, the growth rate of advertising revenue at station B has fallen sharply . The financial report shows that in the first half of 2022, the advertising revenue of station B was 2.199 billion yuan, a year-on-year increase of 25%, while the year-on-year growth rate in the first half of 2021 was 213%.
In this regard, for the advertising business in the second half of the year, Station B said on the earnings conference call that it will adjust its organization and style of play . In the third quarter, advertising will increase by about 20% year-on-year.

Advertising accounted for 22%, and the growth rate fell sharply
Overall, the business of Station B is mainly divided into 4 parts, including mobile games, value-added services, advertising, e-commerce and others. Among them, value-added services, including major membership and live broadcast services, have grown into the pillar business of Station B. In the first half of 2022, value-added services contributed 41.71% to total revenue.
At station B, the positions of mobile games and advertising businesses are almost the same. In the first half of 2022, the two contributed 24.13% and 22.07% of total revenue respectively. Relatively speaking, e-commerce and other businesses accounted for a smaller proportion, at 12.09%.

In the Internet advertising market, the traditional "Matthew effect" is gradually weakening. New star Internet companies such as Station B have attracted much attention in the industry due to their almost linear rise. Taking last year as an example, the advertising business of station B even doubled in the second quarter and the first half of the year.
In the first half of 2021, the advertising revenue of station B reached 1.764 billion yuan, a year-on-year increase of 213%. Among them, in the second quarter of 2021, the advertising revenue of station B was 1.049 billion yuan, a year-on-year increase of 201%. This is the first time that the advertising business revenue of Station B has exceeded the 1 billion yuan mark in a single quarter, and the advertising business is gradually becoming a new potential for revenue growth of Station B.

However, it can be seen from the latest financial report that the growth rate of Bilibili’s advertising business has gradually slowed down. The financial report shows that in the second quarter of 2022, the advertising business revenue of station B reached 1.158 billion yuan, an increase of 10% compared with the same period last year, while last year's figure was 201%, a growth rate 20 times that of today.
In addition, in the first half of 2022, the advertising business revenue of station B was 2.199 billion yuan, an increase of 25% compared with the same period last year, and the growth rate in the first half of last year was 8 times that of the present.

In this regard, Li Ni, vice chairman and chief operating officer of Station B, said on the earnings conference call, "Global macroeconomic changes and repeated epidemics have affected the advertising industry. The short-term impact of the advertising industry is relatively significant, but in the next one to two years During the year, there will still be persistent effects in the medium and long term. Advertisers' budgets will obviously shrink during this period, and they will be more cautious. At this stage, the development of emerging industries will be more difficult than before. "

From an industry perspective, the advertising of many Internet companies experienced negative growth in this quarter. For example, Kuaishou grew by 10.5% year-on-year, iQiyi fell by 28% year-on-year, and Tencent fell by 25% year-on-year. Although the growth rate of station B is not high, the market share of a few companies that are still rising has increased.

Among them, a large part of Kuaishou's advertising growth rate comes from internal circulation of e-commerce advertising (in the second quarter, a large part of the 90% year-on-year increase in the number of Kuaishou platform advertisers came from internal merchants on Kuaishou platform) , B Zhanzhan is one of the few advertising platforms that are growing against the trend and are mainly based on external circulation, and there is room for imagination in the future growth.

Introduce Story-Mode, try vertical screen advertising mode
In terms of advertising mode, in addition to the mainstream medium-length video and horizontal screen mode in station B, station B has also explored short video and vertical screen mode, that is, Story-Mode.
In fact, in 2021, the Story-Mode product was launched at Station B, but it was not publicized at that time, and users did not know Story-Mode. The main reason why Bilibili wants to do Story-Mode is that Bilibili is not only regarded as a tool, but a people-centered community. In the community, the consumption scene includes multiple scenes and multiple screens, not only limited to medium and long videos, but also not limited to landscape mode. There should also be shorter videos, live broadcasts, and can also be viewed vertically.

Therefore, Story-Mode is a manifestation of the "multi-scenario, multi-category" strategy that Station B has been emphasizing .
In Station B, Story-Mode has become an important supplement to the original content ecology, which can meet the needs of users to "watch videos for one minute/two minutes to pass the time". In addition, for those low-active users of station B, Story-Mode also played a role in promoting activation. Because some low-active users in the past may think that the video of station B is too long, or think that the video of station B has an aesthetic threshold, and for these low-active users, Story-Mode can play a very good role in "pulling", "pulling" User Advancement".
Not only for users, Story-Mode widens the upward path of the UP master. In the past, if new UP owners wanted to increase their followers, they could only go through one tome video after another, but now, in addition to this method, UP owners can also publish some light videos and short videos, and through these videos, they can gather together into a tower to help them increase their followers. . At the same time, the vertical screen mode of Story-Mode also creates more opportunities for UP masters who were originally good at creating vertical screen videos.