ByteDance kick starts its payment service with cash giveaways during world’s most-watched TV show
- The Lunar New Year Gala typically provides a platform for China’s internet giants to attract millions of new users who stay engaged with their apps
- WeChat gave away red packets worth 500 million yuan for the 2015 Spring Festival Gala, while Alipay upped that to 800 million yuan the following year
After ByteDance secured rights for its short video app Douyin to sponsor the most-watched TV programme in the world, it committed to giving away 1.2 billion yuan (US$186 million) in “red packets”. If history is any guide, the money will be well spent.
In past years, the annual Lunar New Year Gala broadcast by China Central Television (CCTV) has proved an effective launch pad for Chinese internet giants to kick start their new payment services.
In January, soon after Douyin secured the partnership with CCTV, ByteDance launched Douyin Pay. The new payment service, which works with banks including state-owned Bank of China, aims “to supplement the existing major payment options, and to ultimately enhance user experience on Douyin”, the company said.
“The Spring Festival Gala is a high-quality marketing resource with rarity, impact and huge traffic. Every company will chase the opportunity,” said Ma Shicong, a senior analyst at market research firm Analysys.
In recent years, China’s major internet players, including Tencent which operates the ubiquitous messaging app WeChat, Alibaba’s e-commerce platform Taobao, and Douyin’s biggest domestic competitor Kuaishou, have all secured the lucrative sponsor agreement for the CCTV special.
This has enabled them to conduct red packet promotions which have in turn attracted millions of new users who stayed engaged with their apps even after the country’s most important holiday.