Galaksion blog News digest 04.05.2020
Mon May 04,2020
News digest 04.05.2020

Here is another news update from Galaksion team! 

As we passed on from April to May, last week brought to our attention a lot of interesting material. Let’s find out what is new.

Facebook is planning on enlarging its presence in Indian eCommerce by integrating shopping options into WhatsApp


In the beginning of April Facebook purchased a 10% share of an Indian telecom giant Reliance Jio Platforms for $5,7 billion.

JioMart, an e-commerce venture run by India’s most valued firm, is testing an “ordering system” on WhatsApp, teasing the first peek at the collaboration between Facebook and Jio.

Users in three sub-urban areas of Mumbai can initiate an order by texting “Hi” in a chat, which prompts a link that opens a mini store on the browser, allowing them to pick a range of grocery products including toothpaste, snacks, tea and coffee, rice, and cooking oil.

Once an order has been placed JioMart automatically assigns a neighborhood store to them and sends an invoice through WhatsApp. More than 1,200 neighborhood stores are engaging in the pilot program. 

Parent company of Google reported a significant slowdown in ad revenues in March


According to Alphabet financial report, company's business drove its revenues to $41.2 billion, up 13% versus last year.

Performance was strong during the first two months of the quarter, Google Search ads income shown 9% growth and totaled $24,5 billion. But then in March there was a significant slowdown in ad revenues. It was caused by advertisers who were most affected by pandemia. As a result search ads revenue shown negative growth in the last month. 

YouTube ad revenue was $4 billion — 33% more than in the first quarter of 2019. Google Network Members' properties gained 5% in growth versus 2019 and totaled $5,2 billion.

Pro gaming leagues are seeing a huge spike in viewership


With most sports canceled and few other live competitions around, professional gaming leagues have been uniquely situated to adapt to an online-only structure in order to keep going. League of Legends and CS:GO are leading the way

The 11th season of the ESL Pro League, which ran from March 16th to April 12th, was what the league describes as “the most successful season in the competition’s history.” That includes a new record of 489,120 concurrent viewers across all platforms for the CS:GO league. The league also says that total hours watched were up 113.2 percent compared to last year and that the average minute audience reached 164,494, a jump of 215.5 percent compared to season 10.

Facebook gained 17% more on advertising in the first quarter


Facebook advertising income shown tremendous growth of $4,9 billion in the first quarter of 2020. The number of active users reached 2,6 billion (10% more than in previous year).

Facebook reported that in the last 3 weeks of the quarter they witnessed a decrease of demand on advertising, but in the beginning of April situation stabilized. 

Pinduoduo, a rival to Alibaba and JD in China, shown a tremendous growth in the past year


U.S.-listed Pinduoduo (PDD) is now the third-largest e-commerce player behind Alibaba and in China. The company recently issued new shares and also made its first major investment as it looks to expand.

Behind that success has been its “social shopping” model that encourages users to share links to items they purchase with friends and participate in group buying. The more people that join in, the lower the price of the item goes.

While Alibaba and make most of their money from e-commerce, they both have other emerging businesses such as cloud computing. So PDD’s income stream is narrower.

But its revenue is growing faster in percentage terms. In the December quarter, PDD’s revenue hit 10.79 billion yuan ($1.55 billion), an increase of 91%. In the same quarter, Alibaba’s revenue was up 38% from last year but it raked in 161.45 billion yuan or $23.19 billion, nearly 15 times as much as PDD.

A large part of PDD’s growth has been driven by the fact that it can be accessed on Tencent-owned messaging service WeChat, which has over a billion monthly users.