[Asia Economy Reporter Seungjin Lee] Kakao is strengthening the open chat feature of its messenger platform KakaoTalk. Instead of expanding its scale by increasing subsidiaries through business expansion in various fields, Kakao is attempting a new change by advancing its core business through the enhancement of the KakaoTalk platform. Open chat is expected to go beyond its role as a messenger to function as a community feature and lead overseas expansion.
Kakao Expands Entry Points for ‘Open Chat’
On the 16th, according to Kakao, the open chat entry points, which were previously provided as an additional feature in the KakaoTalk chat tab, will be added to the portal Daum search results, and a shortcut to open chat will be placed at the top of the chat tab. Exposure of open chat in Daum search results will be expanded from dramas to sports, entertainment, and more.
Kakao plans to develop KakaoTalk from a real-time communication-focused service into an anonymous community based on social networking service (SNS). This move follows Kakao co-CEO Namgoong Hoon’s statement during the Q2 earnings announcement that “we will expand the entry points of open chat within the Kakao ecosystem to connect the interests of 9 million users.”
Open chat has shown steady growth. This year, the number of open chat users increased by 76% compared to 2019, and the daily active users reached 9 million. Unlike regular KakaoTalk chats, open chat’s strength lies in allowing people who do not know each other to communicate based on shared interests without the need for friend addition procedures such as phone numbers or IDs.
Recently, the role of sharing daily life has been strengthened. On the 9th, when record-breaking heavy rain fell, Kakao placed the keyword ‘flood situation’ on the open chat main page to help users share information. Additionally, Kakao introduced ‘Voice Room,’ which allows up to 1,500 people to enjoy voice conversations in an open chat room, emphasizing daily communication functions.
Advertising and Remittance Features... Foundation for Overseas Expansion
Open chat is the core of KakaoTalk’s transformation. Kakao’s management has diagnosed that the current KakaoTalk has reached limits in both scalability and profitability. Namgoong, who has repeatedly mentioned KakaoTalk’s ‘limits,’ identified open chat as the key to a major overhaul of KakaoTalk.
Open chat was launched as an independent application called ‘Open Link’ to establish a domestic base and is now planning overseas expansion. Namgoong presented a blueprint called ‘Kakao Universe,’ which aims to create a platform where users with shared interests communicate beyond the previously focused acquaintance-based communication, targeting overseas markets. In line with this, Kakao is exploring customized revenue models for open chat.
Kakao plans to introduce interest-based customized advertising in the open chat service within this year. Currently, 1% of advertisers generate 70% of revenue. By introducing advertising in open chat, Kakao aims to significantly increase the number of advertisers to reduce the impact of companies drastically cutting advertising budgets amid the economic downturn. Users can directly access open chat rooms with topics matching their search results on Kakao Webtoon, Melon, Shopping, etc., where interest-based customized ads will be displayed.
Open Link will add KakaoPay remittance functions to support monetary transactions needed in anonymous communities such as creator sponsorships and club participation. Kakao plans not only to activate open chat usage but also to implement content distribution by creators and various communities linked with open chat through Open Link. Through Open Link, Kakao envisions strengthening connectivity among its services, expanding profitability, and global expansion, with the introduction of remittance functions being part of this plan.
An IT industry insider explained, “Kakao’s strengthening of open chat is interpreted as a search for a new growth strategy that moves away from controversies such as ‘octopus-like expansion’ and ‘infringement on local businesses.’ It is a move to increase profitability through strengthening existing services and organic integration.”
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