Weibo Corporation (NASDAQ:WB) Q2 2020 Earnings Conference Call - Final Transcript
Sep 28, 2020 • 07:00 am ET
[Foreign Speech]. With the COVID-19 pandemic situation in China stabilized and people's work resumption, we observed a normalization of pandemic related content consumption, which led to sequential pullback of traffic from the peak level in the first quarter. But it's worth mentioning that we saw notable growth of user's content generation and user engagement during this quarter, backed by our strategy to improve user engagement and retention on top of user growth, particularly we have reinforced our investment on fee distribution efficiency and social interaction through enhanced user stickiness on the platform.
On the monetization front, we further refined and strengthened our ad offerings designated for client's evolving market needs during the pandemic. With that and benefiting from domestic ad demand pickup, amid a stabilization of pandemic and work resumption, our ad business is back on a recovery trend with ad revenue narrowly any [Phonetic] declining rate from prior quarter.
[Foreign Speech]. In discussing our operating updates for the second quarter, I will elaborate our progress made in areas of product and monetization. Let's start with user growth and engagement. There are mainly three aspects of progress being made which contribute to a healthy growth of users billed [Phonetic] year-over-year.
[Foreign Speech]. First on channel investment, during the first half of the year, we emphasized on synergy between our channel investment efforts and relevant product and operating efforts to provide better content consumption experience for recorded [Phonetic] users. For example, we expanded the coverage of a task-based red envelope incentives to recall the users which improved user engagement. We also enhanced the video content distribution to recorded users which increased their time spent on the platform. This initiative helped improve our user acquisition efficiency.
[Foreign Speech]. Second on content operation of hot trend. Through the experience in content operation during the pandemic, we have solidified our strength in content operation of social events. In the second quarter, our focus was on the location-based content operation through hot trend to enhance user acquisition capability in the local market.
During the pandemic, we have upgraded content distribution mechanism for location-based contents. We prioritize the distribution of local content submitted from local media and self medias over existing content selected through data mining, which largely improved content quality and diversity. And consequently, in this quarter, user who consumed the push location based content doubled year-over-year.
And meanwhile, we launched a subsection in hot search which is focused on location-based hot trends in May aiming to drive content discovery and consumption based on user's geographical regions. In June, daily query of location based hot trends increased by double-digit compared with previous months. These achievements help us set a clear framework of location-based content distribution, consisting of content push, feed recommendation and hot search, underpinned by different cooperation with local media and self-media. This could help us enhance our core competitiveness in the local market.
[Foreign Speech]. And lastly, on social interactions, we continue to optimize our use of products and drive our user engagement.