Ahead of the Lunar New Year holiday, competition for New Year’s cash is heating up among big tech companies.
In the past, if New Year’s cash was a marketing game that attracted traffic by releasing funds, this Lunar New Year’s cash gift competition is expected to evolve into a strategic battle over the leadership of next-generation super traffic with artificial intelligence (AI) as the core. As four major tech companies, Tencent, Baidu, Alibaba, and ByteDance, have invested hundreds of millions of yuan worth of resources, the AI competition is entering a new phase that encompasses the entire ecosystem. Tencent was the first to open the door through its app (APP) on the 25th of last month. Tencent officially announced the payment of cash gift money worth a total of 1 billion yuan, and Hong Bao’s maximum amount per case is 10,000 yuan.
Tencent aims to spread and popularize AI apps through this event. Users can access the app every day and receive cash Hongbao, and if they complete missions such as conducting AI dialogues, they will be given a chance to draw lots.
Baidu also immediately joined the competition for Hongbao. It linked Hongbao’s operation method to its AI assistant platform, Wonshin, at a benefit of 500 million yuan. According to Baidu, the event will run from January 26 to March 12.
The four major tech companies have different strategies but have the same goal. The plan is to break away from abstract concepts and become a service that anyone can experience in everyday life by taking advantage of the time when all age groups and diverse scenarios are concentrated at the same time. Experts point out that the biggest feature of this year’s Lunar New Year’s Day competition is that AI has emerged as a key driving force leading users’ participation, away from playing a supporting role.
From payment platforms to short-form platforms… Every time the Internet traffic structure has been reorganized over the past decade, competition for New Year’s cash gifts has appeared almost entirely. However, this New Year’s cash gifts war is not just an influx of new users in the short term. With mobile Internet traffic entering a stagnation phase, big tech companies are discovering new traffic inflow channels and seeking new growth engines thanks to AI.
Citigroup analyzed in a recent report that the New Year’s cash prize competition will be a watershed moment for Chinese AI assistants to enter the popularization stage beyond simple Lunar New Year marketing events.
Goldman Sachs also predicted in its report that this year will be an important strategic turning point for Chinese internet giants. It also predicted that AI investment in consumer areas will continue to expand and competition for AI super traffic leadership will intensify.
ByteDance’s app is considered the most popular AI app in China. According to the data released, the monthly active users (MAU) of Dou Bao reached 163 million, while Chen One app under Alibaba also garnered 100 million monthly active users.
Tencent and Baidu plan to narrow the gap and further expand user awareness and market share in the AI app field with the Spring Festival Hongbao event.
Competition for New Year’s cash gifts during the Lunar New Year holidays will not be decided immediately. However, the real competition is expected to begin after the heat subsides. The long-term battle over the AI ecosystem is quietly announcing the beginning.
SALLY LEE
US ASIA JOURNAL
