Everything Becomes Content
#Platform Strategy #Gift Economy #Contents #eSports #Commerce #Ads
Platform
AfreecaTV is utilizing a comprehensive on-and-offline platform service that allows participants to engage in real-time communication, leveraging advanced media facilities and network infrastructure from the desktop to TV, radio and mobile devices. Through this approach, AfreecaTV aims to create a 'globally accessible live communication platform' that is easily accessible and available to anyone without the need for special technology, equipment, or high costs.
AfreecaTV(Anybody can Freely Broadcast TV)
AfreecaTV provides a live streaming platform service where BJs (Broadcasting Jockeys) and users can create user-generated content through real-time interaction. Due to the extemporaneous nature of live streaming, the AfreecaTV platform has formed its unique culture centered around user communities that value creativity and integrity. As there is no fixed script, this service fosters creativity and establishes a new culture in the media market compared to traditional one-way VODs. While offering this live streaming service, AfreecaTV aims to build a strong community among BJs and users, as well as between users themselves. Through these efforts, the platform also seeks to activate donation-based economy culture and fulfill its social responsibilities. In addition, AfreecaTV is committed to providing a sustainable live streaming service through efforts in environmental protection and safeguarding user privacy.
Gift Economy
Gift economy which includes features like Star Balloons and Subscriptions is a main revenue driver of AfreecaTV. This innovative business model has been benchmarked by other companies since its introduction in 2007 and the size of gift economy has steadily grown.
Real-Time Communication Features
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Chat
Real-time chat among BJs and users during live streaming
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User clips & Catch
Short clips made by users during live streaming
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Quick View
Item that allows users to view content without having to watch an ad at the beginning
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Star Balloon
Donation made by users to BJs during live streaming
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Ad Balloon
Advertisement products with integrated gift economy features
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Subscription
Monthly channel subscription with a fixed donation amount
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Sticker
The gifts that users give to BJs to purchase functional items that support their content
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User Participation
Real-time video chat with a BJ during live streaming
The five-year trajectory of the Platform Service
Percentage of traffic per content
(As of Dec. 31, 2022)Mobile/PC main page
- Mobile
- Computer
Content
To create "A World Where Everything Becomes Content" AfreecaTV directs its capability to producing and obtaining various content with the multimedia platform service and live streaming technologies that have been accumulated for years. We are striving to become a global platform that leads the one-person media market.
BJ Created Content
(User Created Content)
AfreecaTV provides live broadcasts targeting various categories such as gaming, mukbang/ cookbang (eating and cooking shows), variety shows, pet content, sports, music, and more. It offers users a wide range of choices that cater to their preferences, from unique amateurs to expert professionals armed with specialized knowledge. With the convenience of broadcasting and viewing without requiring separate equipment or technical skills, AfreecaTV takes the lead in fostering community groups and popularizing online content. Furthermore, through real-time bidirectional communication, such as chatting, it encourages active interaction with viewers, creating a participatory content nature. AfreecaTV continuously expands its broadcasting activities and strives for diversified content through strategic business partnerships and endeavors.
- Education
- Games
- Entertainment & talk shows
- News/editorial
- Sports
- Food
Professionally Generated Content
AfreecaTV has acquired broadcasting rights for various sports events such as the Olympics, World Cup, WWE, AFC, and KBO. Notably, during the 2022 Qatar World Cup, AfreecaTV showcased an advanced broadcasting culture by complying with broadcasting and advertising policies. Based on this experience, AfreecaTV aims to meet viewers’ diverse demands by offering content that extends beyond standardized professional material, encompassing individual broadcasts that provide a comprehensive array of content options.
Original Content
AfreecaTV provides a diverse array of in-house production contents, spanning live broadcasts and VOD across various genres including gaming, entertainment, web dramas, and music. With sustained investment in original content, AfreecaTV has cultivated vibrant content production environment, resulting in high-quality content production comparable with cable programs. Especially AfreecaTV takes a proactive approach in the eSports sector, organizing events like ASL, GSL, and APL, leveraging its infrastructure. By capitalizing on its production capability, AfreecaTV provides a comprehensive turnkey solution in holding such event covering all aspects from production to broadcasting. Utilizing the state-of-the-art eSports stadiums, such as 'Sangam Coliseum' andJ 'amsil Vita500 Coliseum,' AfreecaTV conveys the excitement and liveliness of professional-level leagues. In addition, the 'Samsungdong Freec UP Studio Studio' consistently produces various content, including small-scale matches and in-house amateur eSports leagues. AfreecaTV also takes an active role in expanding and developing eSports by directly operating professional gaming teams, nurturing national representatives, and promoting a healthy gaming culture.
- Professional eSports team
- eSports stadium
Media/Live Commerce
Live commerce is a combination of live streaming and commerce, where consumers interact with sellers in real-time to make purchases online. It involves bidirectional communication through live chats, allowing both sellers and viewers, who were previously just subscribers of live broadcasts, to engage in communication. This new form of shopping is rapidly growing and has become a significant part of the online commerce market. AfreecaTV is actively developing and advancing the live commerce ecosystem, with a focus on influencer (BJ) content. AfreecaTV continues to build and expand its commerce platform to meet customer needs. In October 2022, Initiating this partnership, both companies will collaborate in various aspects of commerce operation, including transformation technology support, new customer acquisition from joint marketing and further additional service enhancement. By integrating renewed shopping mall solution called ‘Shop by Premium’ into AfreecaTV’s commerce service, NHN will be able to expand sales medium for its client whereas AfreecaTV can also benefit in terms of customers expansion and contents diversification. By further strengthening service ecosystem through diversified content offerings and fostering a virtuous platform economy with increased monetization opportunity for content creators, AfreecaTV will pursue to broaden its commerce scope in the future.
Ads
AfreecaTV is diversifying its business model through advertising efforts. Furthermore, it capitalizes its bidirectional communicating service features and data infrastructure to provide unique offering which tailored to each advertiser. The platform’s goal is to offer its customers with advertising which has more diverse and efficient solution beyond traditional trafficbased exposure advertisement. Simultaneously, AfreecaTV aims to establish win-win scenario, wherein its advertising business to becomes an additional source of revenue for BJs while also being embraced as enjoyable content for users. Beyond traditional traffic-based advertising, AfreecaTV aims to offer customers more diverse and efficient advertising solutions. This approach not only provides users with enjoyable new content but also offers BJ's new revenue streams, generating additional income opportunities.
Platform Advertisement
Within the AfreecaTV platform, various forms of advertising are available across mobile applications and PC pages. These advertisements offer features such as demographic targeting while harnessing the unique characteristics of the AfreecaTV ecosystem, including real-time communication. A prominent example of platform advertising products includes pre-roll and post-roll video ads attached to live content. Additionally, there are standardized internet platform advertising products like banners and keyword search ads. AfreecaTV also offers more interactive ads, such as 'Ad- Balloon,' which incorporate AfreecaTV's distinctive donation culture. Furthermore, to support efficient and convenient ads campaign of advertisers, AfreecaTV developed its own advertising solution called AAM (AfreecaTV Ads Manager). Through this service, advertisers can select products, engage in bidding, and manage campaign efficiency in real time basis.
- In-stream ads
- Banners Ads
- Catch ads
Content Advertisement
AfreecaTV provides content-based advertising that fosters higher engagement compared to traditional one-way ad methods. This type of content-based advertising involves active participation from advertisers, Broadcasters (BJs), and viewers, resulting in a high level of engagement. For instance, producing and broadcasting content such as gaming tournaments like ' League of Legends BJ Battle of Destruction' or 'FIFA Online Spear and Shield' is a representative form of content-based advertising. Additionally, there are opportunities for brands to sponsor original content or have real-time product placements and interactions with viewers during BJ live broadcasts, known as brand lives. Contentbased advertising represents a unique form where the content itself becomes an advertisement. It is characterized by low resistance and high engagement, making it a sought-after digital-based advertising strategy. AfreecaTV focuses on content-based advertising to enhance the marketing effectiveness for advertisers while increasing viewer participation and satisfaction.
AfreecaTV Ads Manager (AAM)
This is a new advertising management solution that enables advertisers and agencies to efficiently operate advertisements. Advertisers can access an easily accessible platform where they can execute advertisements according to their budgets and objectives. Real-time data and targeting capabilities allow them to choose ad creatives and modify campaign strategies flexibly. Utilizing big data and machine learning, the solution enables real-time prediction and analysis of user responses to advertisements, maximizing ad efficiency. Through this solution, not only large advertisers but also Small and Medium-sized Enterprises (SMEs) can enhance their accessibility to AfreecaTV advertising, promoting a symbiotic advertising environment.
Action for the Sustainable Growth of the Ad Service
Through AAM (AfreecaTV Ads Manager), AfreecaTV is actively promoting the stable growth of 'platform advertising'. By implementing real-time product recommendations, strengthened targeting capabilities, and a real-time ad inventory auction system, the platform aims to cater to advertisers' campaign objectives effectively. In addition, leveraging its strong community and real-time communication culture, as well as robust content production capabilities, AfreecaTV has achieved impressive revenue growth with a CAGR of +41% from 2019 to 2022, expanding the share of advertising revenue to 26% of total revenue in 2022. AfreecaTV will continue to enhance advertising efficiency, develop new advertising products, and expand its professional sales infrastructure to provide even more differentiated and customized advertising services.