National Messenger 'KakaoTalk' Closely Chased by 'YouTube'
Announcing Transformation into a Comprehensive Communication Service
Enhancing Interaction and Expanding Everyday Services
There is a crisis theory emerging around KakaoTalk, the national messenger. As YouTube closely follows KakaoTalk, the number one application used by the most people in South Korea, Kakao is openly showing its tension. Kakao has announced a major overhaul of KakaoTalk. The plan is to transform it into a comprehensive communication app that encompasses all aspects of daily life, so that every citizen uses it daily.
Crisis Theory of KakaoTalk Amid YouTube's Offensive
Kakao revealed that the average MAU (Monthly Active Users) of KakaoTalk in the second quarter was 48.2 million, meaning 93% of the entire population uses it. The MAU has increased every quarter. Compared to the second quarter of 2021, the number of KakaoTalk users has increased by 1.4 million over two years. Although it has essentially grown to its maximum potential, it is still expanding. Under normal circumstances, voices pointing out monopoly issues should arise. Nevertheless, the reason for the KakaoTalk crisis theory is the steep growth of YouTube.
Mobile big data company IGAWorks’ Mobile Index announced last month that YouTube’s MAU was 41,157,718, ranking second just behind Kakao’s 41,558,838. This is the smallest monthly gap ever recorded since statistics began in May 2020. Although the data may not be perfectly accurate, no one can deny YouTube’s growth momentum.
Google, the manufacturer of the Android operating system, quickly expanded its influence by pre-installing YouTube as a default app on mobile phones. In the music market, YouTube has nearly caught up to Melon, Kakao’s largest domestic platform. In the search engine market, it is taking market share from Naver and Daum every year. There are even forecasts that Google will completely take over the positions of native services.
KakaoTalk Transforms into a Comprehensive Communication Service
Kakao is undertaking a full-scale overhaul of KakaoTalk. The goal is to secure over 10 million active users daily on all five tabs located at the bottom of the app menu. Simply put, they aim for 50 million citizens to use KakaoTalk’s services every day.
KakaoTalk will strengthen its core messenger function of ‘communication.’ In May, the ‘Open Chat,’ which was previously displayed together in the chat tab, was separated into its own tab. This tab quickly became one visited daily by over 10 million users. In the second half of the year, a chat room recommendation feature tailored to users’ interests will be introduced to offer a more personalized service.
In the third quarter of this year, a service called ‘Pung’ will be introduced in the Friends tab’s profile feature, where content disappears 24 hours after posting. Instagram’s ‘Story,’ a competing service, is highly popular because users can post automatically deleted content without pressure. By introducing a similar service, KakaoTalk intends to expand its SNS (social networking service) functions. The size of the address book within the Friends tab will be minimized, and services providing information such as weather, traffic, and stores based on the user’s location will also be added.
The commerce function will also be strengthened. In June, the luxury specialty section ‘LuxTab’ was launched. It features direct entries from global luxury brands, offering exclusive products and limited editions as differentiators. In the second half of the year, the gift-giving target will be expanded beyond ‘acquaintances’ to include non-acquaintances who share the same interests. Additionally, a personalized shopping experience will be provided through a revamped shopping tab.
There are also plans to link super-large AI models with KakaoTalk’s business services. Hong Eun-taek, CEO of Kakao, explained during the second quarter earnings conference call, “The integration of KakaoTalk and AI will proceed in the business domain,” adding, “Until now, business partners have communicated unilaterally, but with AI integration, it will be possible to deliver personalized messages to countless users.”
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