Tencent-backed Kuaishou ups its 2019 ad sales revenue target by 50%, putting pressure on Douyin

Live streaming is now still the largest cash-cow.

Photo: Stock.tuchong.com

China’s short video app Kuaishou has lifted its revenue target for advertisement sales this year to RMB 15 billion (USD 2.18 billion), up 50% from the target of RMB 10 billion (USD 1.45 billion) set at the beginning of the year, according to a company’s press release.

Kuaishou confirmed with KrAsia on Wednesday that ad sales during the past months were steady and “healthy,” but declined to provide more details for the time being.

The company didn’t disclose its yearly revenue target for 2019, including revenue from both ads and live-broadcasting, although Chinese outlet Jiemian reported in May the company’s RMB 30 billion (USD 4.36 billion) target in revenue for 2019.

If the company reaches the indicated ad sales target, this revenue will account for half of Kuaishou’s reportedly yearly revenue target.

This target released by Kuaishou may pose pressure on Douyin, which is reportedly relying upon ad sales as their primary revenue channel.

Kuaishou said to KrAsia that live streaming still accounts for “a large part of the entire revenue.” Like other live streaming platforms, Kuaishou makes money from live streaming by taking a cut of tips and virtual gifts given by audiences to broadcasters.

Tech-focused outlet LatePost reported in June that Kuaishou’s overall revenue reached RMB 3 billion in May 2019, most of which came from live broadcasting, while Douyin just earned RMB 400 million from live broadcasting, but gained RMB 2.6 billion of ad revenue. Kuaishou said to KrAsia it could not confirm these numbers provided by LatePost.

Kuaishou also told KrAsia that the company aims to reach 300 million daily active users (DAU) before 2020 Chinese Lunar New Year, which starts on Jan 15. Its DAU previously exceeded 200 million in May. Douyin’s DAU meanwhile has already topped 320 million, KrAsia reported earlier this month.