Investor.com" Pan Simin.
As a brand marketing service provider that has long-term cooperation with Tencent, Insai Group (300781SZ), which has gained momentum in the secondary market in recent days, has doubled its share price since December 1.
In the middle of this month, Insai Group is also the most frequent announcement of abnormal fluctuations in transactions, and the company expects that hot issues such as AIGC, short dramas, and Yuanmeng Star will have little impact on the company's 2023 annual performance. The recently released InsightGPT is only a beta version and has not yet been commercialized and has not generated revenue.
"Yuan Dream Star" will be the next "Egg Boy Party"?
Insai Group integrates many concepts, including but not limited to InsightGPT, multimodal AI, MR, short drama games, advertising and marketing, etc., but the most popular concept in recent days is "Yuan Dream Star".
On December 17, Insai Group said on the interactive platform that recently, the genuine family party game "Dream Star" developed and operated by Tencent was launched for public beta and became popular. The company has done relevant content marketing activities for the warm-up and launch of the "Yuanmeng Star" product, involving related creative content such as product reservation, content co-creation, and **.
The reason why "Yuanmeng Star" has attracted so much attention in the secondary market is the success of its competitor game "Egg Boy Party", and it is unknown whether "Yuanmeng Star" can rely on Tencent's platform advantages to achieve latecomer domination, but the doubling of the stock price of Insai Group has represented the attitude of investors.
Egg Boy Party is a party game launched by NetEase's small and medium-sized team in May 2022 with "Fall Guys" as a reference template, and began to counterattack at the end of 2022 to become one of the biggest dark horses in the game industry in 2023.
The game's stats are beautiful. "Egg Boy Party" has been in the first place in the iOS game free list for more than 4 months, the best-selling list is stable in the TOP20, and often squeezes into the top two, NetEase's financial report meeting revealed that its DAU exceeds 30 million, becoming the highest DAU game in the history of NetEase Games, and it is also the highest game in China in the second quarter of 23, with MAU exceeding 100 million in August 2023.
Therefore, investors have great expectations for Tencent's "Yuan Dream Star", which can be said to be a new war in the game field between Tencent and NetEase after the chicken war.
It's hard to say for sure what this competition will do, but the reasons for the success of party games like Egg Boy Party are worth keeping an eye on investors.
As we all know, the biggest headache in the game industry is the life cycle of the game, the life cycle of the terminal game is slightly longer at 3 to 5 years, the life cycle of the web game is greatly reduced to 6 to 18 months, and the mobile game is only 6 to 12 months.
The reason is that these games often rely on players to interact with the officially designed content, and the more the game designer wants the player to be immersed in the game, the more the game process will continue to speed up the game process and arrange dense game content, and the rapid consumption of content will naturally greatly shorten the game life.
But party games are not such a mechanic, but more about the formation of cooperation and confrontation between players, and spontaneously discover new ways to play the game, so that each player is a game designer.
What game developers need to do is to continuously increase the randomness of the game, for example, "Egg Boy Party" is updated for a season in about 42 days, and different season themes correspond to different season stories, levels, blind box appearances and other integrated packaging. More importantly, game developers need to provide platforms and tools for user-generated content (UGC), which in the game of "Egg Boy Party", players can not only play a variety of official party gameplay, but also use the editor to create low-threshold gameplay and share it with game friends, so as to gain a sense of accomplishment and fun.
The UGC mechanism allows players to participate in the creation of more game mechanics and gameplay, so that creative players can continuously produce new game content for other players to experience, thus solving the contradiction between game content production and consumption, and greatly extending the life cycle of the game. At present, the iteration of AI technology is expected to further lower the threshold for creators and enrich the supply of UGC game content.
And the core reason that makes this game popular in the end is that it fits the characteristics of live broadcast and short ** transmission. The success of the UGC mechanism has made countless players spontaneously form communicators, and the content of related games on major short platforms has skyrocketed. So far, "Egg Boy Party" has actually changed from a game to a platform product with the theme of game content, just like content distribution platforms such as Station B and Douyin.
From the game, to the players, to the platform, Egg Boy Party has built a strong barrier. wants to break through this barrier, which is difficult for "Yuan Dream Star", which appeared a year later. However, there are still opportunities, Tencent has a leading advantage in the social field, and has already laid out and accumulated in the field of party games and UGC games, with strong R&D strength and rich experience, in addition to holding a large number of IP resources in its hands, if it can open up resources, it can provide a lot of materials for players to create.
As one of the brand marketing service providers that has been cooperating with Tencent for more than 13 years, Insai Group has successively served Tencent Games (Tencent Interactive Entertainment Business Group IEG), Tencent E-sports, Tencent **, Tencent Pictures and other business departments.
In the field of game marketing, the company currently has a Tencent interactive entertainment service team of nearly 100 people, providing full-chain brand marketing services covering marketing strategy planning, content marketing, film and television production, event execution and other links, covering many blockbuster popular games such as "Honor of Kings", "League of Legends" and "Peace Elite", with a peak annual cooperation income of nearly 80 million yuan.
"Yuan Dream Star" may be the next phenomenal game, **Tencent's Insai Group naturally rises.
Enter the short drama track
Insai Group is the first listed company in China with brand management as its main business, providing customers with marketing technology empowerment and full-chain brand marketing intelligent services. Its business structure is divided into strategic consulting business, brand management business, media business, etc., which basically covers the whole link of marketing.
In recent years, with the development of science and technology, marketing technology has also been constantly updated, gradually iterating from traditional technologies such as TV advertising to automated marketing and AIGC marketing. In the era of AIGC marketing, driven by personality, AIGC marketing is expected to reshape the market competition pattern and business model.
In the fourth quarter of 2023, Insai Group released the internal beta version of the marketing AIGC application model and displayed it at the "Sky and Sky Creative Festival" to achieve endogenous business expansion and empower business upgrading and optimization with technology. At present, the beta version of InsightGPT has launched the Wensheng Diagram function, and it is expected to launch the ** intelligent editing function at the end of this year and the ** Picture Generator function at the beginning of February next year for external trial. InsightGPT is expected to launch an official version in 2024 to accelerate the commercialization process.
InsightGPT has two charging models, namely SaaS annual subscription and content generation pay-per-use model, which is expected to become a new performance growth point for the company.
According to the 2023 interim report of the company, the gross profit margin of the strategic consulting business is as high as 90%, and its services are mainly world-class brand customers, such as Chanel, LV, Alibaba, etc. The brand management business is its core business, accounting for 70% of its revenue contribution in 2023H1, and the gross profit margin will continue to remain above 40%.
According to the official WeChat display of the company, the car brands served by the company not only cover the dominant brands of domestic and joint venture traditional car companies, but also cover many new energy vehicle brands, totaling more than 20 car brands with a total of more than 50 models. In the first half of 2023 this year, Insai Group won the three annual ** of Xiaopeng Motors, FAW Hongqi, and SAIC Roewe in the competition.
Most of the auto marketing** projects are settled and collected on a monthly basis in the form of monthly service fees, which means that the auto marketing business can contribute stable performance and cash flow to the Insai Group for two to three years.
In addition, in May 2023, Insai Group acquired Yingxing World to enter effect marketing. With 4,000 square production and live broadcast bases, 100+ self-operated short ** accounts and more than 100 million short ** platform fans, it has formed long-term cooperative relations with Midea Group, BYD, vivo, Oppai Group, Xiaopeng Motors, Wal-Mart, NetEase Media and other brands.
It is worth noting that the film industry is also laying out short dramas and games. He has participated in the production of the short drama "Attack on Secretary Kim", which has received a good response from the market, and it is expected that at least 4 short dramas produced by him will be released next yearAt the same time, Yingxing World is also working with external strategic partners to develop an interactive story game, which is expected to be launched in the first quarter of 2024 at the earliest. (Produced by Thinking Finance).