Technology
Tencent Music Entertainment Group Announces Third Quarter 2024 Unaudited Financial Results
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2 days agoon
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SHENZHEN, China, Nov. 12, 2024 /PRNewswire/ — Tencent Music Entertainment Group (“TME,” or the “Company”) (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
Total revenues were RMB7.02 billion (US$1.0 billion), representing a 6.8% year-over-year increase, primarily due to strong year-over-year growth in revenues from online music services, and partially offset by a decline in revenues from social entertainment services and others.Revenues from music subscriptions were RMB3.84 billion (US$547 million), representing 20.3% year-over-year growth. The number of paying users increased by 15.5% year-over-year to 119.0 million, up by 2.0 million from the second quarter of 2024. ARPPU grew 4.9% year-over-year to RMB10.8.Net profit was RMB1.71 billion (US$244 million), representing 35.3% year-over-year growth. Net profit attributable to equity holders of the Company was RMB1.58 billion (US$226 million), representing 35.5% year-over-year growth. Non-IFRS net profit[1] was RMB1.94 billion (US$276 million), representing 29.1% year-over-year growth. Non-IFRS net profit attributable to equity holders of the Company[1] was RMB1.81 billion (US$258 million), representing 28.8% year-over-year growth.Diluted earnings per ADS was RMB1.01 (US$0.14), up from RMB0.74 in the same period of 2023.Total cash, cash equivalents, term deposits and short-term investments as of September 30, 2024 were RMB36.04 billion (US$5.14 billion). As of September 30, 2024, the Company had repurchased 42.1 million ADSs in the open market with cash for a total consideration of US$335.5 million, of which approximately US$100 million were repurchased in the third quarter.
Mr. Cussion Pang, Executive Chairman of TME, commented, “Our commitment to high-quality growth is reflected in another solid quarterly performance. The steady expansion of our music subscribers and diversified music services continue to drive overall growth and profitability. We are encouraged by the growing synergies between our platform and well-established content ecosystem, which have become a vital force in empowering us to seize new opportunities for long-term, sustainable growth.”
Mr. Ross Liang, CEO of TME, continued, “This quarter’s robust music subscription performance, with better-than-expected net subscriber additions and an expanding ARPPU, highlights the effectiveness of our balanced approach to achieve growth, which is important to drive paying user base expansion in the coming years. By offering enriched and differentiated user privileges, our value proposition for more premium memberships has been well accepted, cultivating greater loyalty on our platform.”
Third Quarter 2024 Operational Highlights
Key Operating Metrics
3Q24
3Q23
YoY %
MAUs – online music (million)
576
594
(3.0 %)
Mobile MAUs – social entertainment (million)
90
129
(30.2 %)
Paying users – online music (million)
119.0
103.0
15.5 %
Paying users – social entertainment (million)
7.9
7.8
1.3 %
Monthly ARPPU – online music (RMB)
10.8
10.3
4.9 %
Monthly ARPPU – social entertainment (RMB)
64.8
86.2
(24.8 %)
Dynamic and robust content ecosystem enabled us to diversify our offerings and capitalize on emerging trends swiftly.
Expanded and deepened partnerships with leading record labels: 1) Renewed contracts with YH Entertainment Group and Image Music Group to include early access for new song releases. 2) Strategic alliance with Galaxy Corporation further strengthened our advantage in K-pop content offerings, including digital albums, merchandise, and multi-year hosting rights for G-Dragon’s concerts in Asia and other regions.Elevated our industry impact through hosting influential and tailored concert events: 1) Successfully staged TME’s Zebra Music Festival in September, a two-day live music event attracting nearly 65,000 music fans, featuring performances from leading artists such as Chen Chusheng, Joker Xue, and Zhang Yuan[2], alongside Tencent musicians and other popular artists Leon Liu, Zhao Lei, and Suede[2]. 2) Organized pop singer and songwriter Yu Jiayun’s live concert, marking his first-ever ticketed show with over 10,000 attendees. Produced and promoted chart-topping theme songs for popular Tencent games such as League of Legends: Wild Rift and Peacekeeper Elite, and elevated engagement by offering in-game benefits to listeners.Collaborated with artists and labels to offer Super VIP (“SVIP“) members additional privileges, enhancing conversion and loyalty. This includes: 1) Complimentary access to an extensive digital album collection. 2) Proprietary concerts and fan engagement activities, such as pre-sales for ticket concerts by G.E.M., Mariah Carey, and TIA RAY[2] during the quarter.
Effective operations and expansive privileges led to subscriber base expansion and SVIP adoption, paving a strong foundation for sustained future growth.
Enhanced recommendation algorithms increased overall subscriber conversion, with recommendation-driven streams reaching a record high.Introduced more personalized product features including dynamic player skins, audio players, and ringtones; collaborated with popular IPs such as Black Myth: Wu Kong, Crayon Shin-chan, and Disney to drive engagement. Leveraged expanding LLM capabilities to improve contents production and discovery effectiveness.Over 10 million SVIP subscribers as of the end of September 2024, with blended ARPPU and user engagement higher than non-SVIP subscribers.For SVIP adoption, premium audio quality and enriched long-form audio offerings were some of the key growth drivers. Features such as QQ Music’s Premium Sound, DTS sound quality, and Kugou Music’s Viper Ultra Sound helped enhance SVIP member experiences. We also expanded the Viper series privileges to in-vehicle use through strengthened partnerships with Xiaomi, Li Auto, and NIO.
Third Quarter 2024 Financial Review
Total revenues increased by 446 million, or 6.8%, to RMB7.02 billion (US$1.0 billion) from RMB6.57 billion in the same period of 2023.
Revenues from online music services delivered a strong year-over-year increase of 20.4% to RMB5.48 billion (US$781 million) from RMB4.55 billion in the same period of 2023. The increase was driven by solid growth in music subscription revenues, supplemented by growth in revenues from advertising services. Revenues from music subscriptions were RMB3.84 billion (US$547 million), representing 20.3% year-over-year growth compared with RMB3.19 billion in the same period of 2023. This rapid growth was driven by continuous expansion in the online music paying user base and improved ARPPU. The number of online music paying users increased by 15.5% year-over-year to 119.0 million, with a monthly ARPPU of RMB10.8 in the third quarter of 2024. The increase in the number of paying users and monthly ARPPU was primarily due to high quality contents, attractive membership privileges, optimized user operations and effective promotions, as well as the expansion of SVIP membership program. The year-over-year increase in revenues from advertising was primarily due to our more diversified product portfolio and innovative ad formats, such as ad-supported mode. Additionally, increased revenues from offline performances also contributed to the growth in revenues from online music services.Revenues from social entertainment services and others decreased by 23.9% to RMB1.54 billion (US$219 million) from RMB2.02 billion in the same period of 2023. The continued decrease was mainly the result of adjustments to certain live-streaming interactive functions and more stringent compliance procedures implemented. Meanwhile, we continue to focus on the healthy growth in advertising and VIP memberships within social entertainment.
Cost of revenues decreased by 4.8% year-over-year to RMB4.02 billion (US$573 million), mainly due to decreased revenues from social entertainment services that led to less revenue sharing fees, partially offset by increased costs related to offline concerts and music festivals, content costs of royalties and payment channel fees.
Gross margin increased to 42.6% from 35.7% in the same period of 2023, primarily due to strong revenue growth from music subscriptions and advertising services, and the ramp-up of our own content.
Total operating expenses decreased by 3.9% year-over-year to RMB1.22 billion (US$174 million). Operating expenses as a percentage of total revenues decreased to 17.4% from 19.3% in the same period of 2023.
Selling and marketing expenses were RMB220 million (US$31 million), which were relatively stable compared with same period of last year. We continue to maintain ROI focused approach for promotion expenses.General and administrative expenses were RMB1.00 billion (US$142 million), representing a 4.9% year-over-year decrease. This decrease was primarily due to reduced employee-related expenses.
Total operating profit was RMB2.14 billion (US$306 million) in the third quarter of 2024, representing an increase of 50.5% year-over-year.
The effective tax rate for the third quarter of 2024 was 17.7% compared with 12.2% in the same period of 2023. The increase in the effective tax rate was mainly driven by the accrual of withholding income tax of RMB113 million (US$16 million) in the third quarter of 2024.
For the third quarter of 2024, net profit was RMB1.71 billion (US$244 million) and net profit attributable to equity holders of the Company was RMB1.58 billion (US$226 million). Non-IFRS net profit was RMB1.94 billion (US$276 million) and non-IFRS net profit attributable to equity holders of the Company was RMB1.81 billion (US$258 million). Please refer to the section in this press release titled “Non-IFRS Financial Measure” for details.
Basic and diluted earnings per American Depositary Shares (“ADS”) for the third quarter of 2024 were RMB1.02 (US$0.15) and RMB1.01 (US$0.14), respectively; non-IFRS basic and diluted earnings per ADS were RMB1.17 (US$0.17) and RMB1.16 (US$0.16), respectively. The Company had weighted averages of 1.55 billion basic and 1.57 billion diluted ADSs outstanding, respectively. Each ADS represents two of the Company’s Class A ordinary shares.
As of September 30, 2024, the combined balance of the Company’s cash, cash equivalents, term deposits and short-term investments amounted to RMB36.04 billion (US$5.14 billion), compared with RMB35.03 billion as of June 30, 2024.
Share Repurchase Program
Under the US$500 million Share Repurchase Program announced on March 21, 2023, as of September 30, 2024, we had repurchased 42.1 million ADSs in the open market with cash for a total consideration of US$335.5 million.
Environmental, Social, and Governance (“ESG”)
In the third quarter, we published our inaugural ESG report, detailing our practices and achievements across environmental, social, and governance areas. This report underscores our unwavering commitment to sustainable development and corporate social responsibility.
Additionally, the Tencent Musician Platform was recognized as one of China’s first model cases for its national copyright powerhouse strategy recently, honoring our contributions to music copyright protection and the advancement of the music industry.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Non-IFRS Financial Measure
The Company uses non-IFRS net profit for the period, which is a non-IFRS financial measure, in evaluating its operating results and for financial and operational decision-making purposes. TME believes that non-IFRS net profit helps identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its profit for the period. TME believes that non-IFRS net profit for the period provides useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-IFRS net profit for the period should not be considered in isolation or construed as an alternative to operating profit, net profit for the period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS net profit for the period and the reconciliation to its most directly comparable IFRS measure. Non-IFRS net profit for the period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. TME encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Non-IFRS net profit for the period represents profit for the period excluding amortization of intangible and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments and related income tax effects.
Please see the “Unaudited Non-IFRS Financial Measure” included in this press release for a full reconciliation of non-IFRS net profit for the period to its net profit for the period.
[1] Non-IFRS net profit and non-IFRS net profit attributable to equity holders of the Company were arrived at after excluding the combined effect of amortization of intangible assets and other assets arising from business acquisitions or combinations, share-based compensation expenses, net losses/gains from investments, and related income tax effects.
[2] Names of artists and bands contained in this press release are sorted according to the following rules: (i) grouped by artists and bands: and (ii)in alphabetical order by full names.
About Tencent Music Entertainment
Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country’s highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME’s mission is to create endless possibilities with music and technology. TME’s platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Investor Relations Contact
Tencent Music Entertainment Group
ir@tencentmusic.com
+86 (755) 8601-3388 ext. 818415
TENCENT MUSIC ENTERTAINMENT GROUP
CONSOLIDATED INCOME STATEMENTS
Three Months Ended September 30
Nine Months Ended September 30
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions, except per share data)
(in millions, except per share data)
Revenues
Online music services
4,553
5,480
781
12,303
15,911
2,267
Social entertainment services and others
2,016
1,535
219
8,556
5,032
717
6,569
7,015
1,000
20,859
20,943
2,984
Cost of revenues
(4,227)
(4,024)
(573)
(13,705)
(12,171)
(1,734)
Gross profit
2,342
2,991
426
7,154
8,772
1,250
Selling and marketing expenses
(219)
(220)
(31)
(642)
(617)
(88)
General and administrative expenses
(1,049)
(998)
(142)
(3,110)
(2,885)
(411)
Total operating expenses
(1,268)
(1,218)
(174)
(3,752)
(3,502)
(499)
Interest income
273
299
43
775
881
126
Other gains, net
78
72
10
168
150
21
Operating profit
1,425
2,144
306
4,345
6,301
898
Share of net profit of investments accounted
for using equity method
49
29
4
107
65
9
Finance cost
(35)
(97)
(14)
(111)
(153)
(22)
Profit before income tax
1,439
2,076
296
4,341
6,213
885
Income tax expense
(176)
(367)
(52)
(530)
(1,180)
(168)
Profit for the period
1,263
1,709
244
3,811
5,033
717
Attributable to:
Equity holders of the Company
1,168
1,583
226
3,614
4,687
668
Non-controlling interests
95
126
18
197
346
49
Earnings per share for Class A and Class B
ordinary shares
Basic
0.37
0.51
0.07
1.16
1.52
0.22
Diluted
0.37
0.50
0.07
1.14
1.50
0.21
Earnings per ADS (2 Class A shares equal to 1 ADS)
Basic
0.75
1.02
0.15
2.31
3.04
0.43
Diluted
0.74
1.01
0.14
2.28
2.99
0.43
Shares used in earnings per Class A and Class B
ordinary share computation:
Basic
3,134,975,498
3,092,300,590
3,092,300,590
3,127,809,736
3,087,337,746
3,087,337,746
Diluted
3,173,371,472
3,134,713,201
3,134,713,201
3,172,090,075
3,132,654,290
3,132,654,290
ADS used in earnings per ADS computation
Basic
1,567,487,749
1,546,150,295
1,546,150,295
1,563,904,868
1,543,668,873
1,543,668,873
Diluted
1,586,685,736
1,567,356,601
1,567,356,601
1,586,045,038
1,566,327,145
1,566,327,145
TENCENT MUSIC ENTERTAINMENT GROUP
UNAUDITED NON-IFRS FINANCIAL MEASURE
Three Months Ended September 30
Nine Months Ended September 30
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions, except per share data)
(in millions, except per share data)
Profit for the period
1,263
1,709
244
3,811
5,033
717
Adjustments:
Amortization of intangible and other assets arising from
business acquisitions or combinations*
101
109
16
334
330
47
Share-based compensation
185
168
24
553
525
75
(Gains)/losses from investments**
(3)
–
–
(30)
16
2
Income tax effects***
(43)
(46)
(7)
(123)
(167)
(24)
Non-IFRS Net Profit
1,503
1,940
276
4,545
5,737
818
Attributable to:
Equity holders of the Company
1,408
1,814
258
4,348
5,391
768
Non-controlling interests
95
126
18
197
346
49
Earnings per share for Class A and Class B
ordinary shares
Basic
0.45
0.59
0.08
1.39
1.75
0.25
Diluted
0.44
0.58
0.08
1.37
1.72
0.25
Earnings per ADS (2 Class A shares equal to 1 ADS)
Basic
0.90
1.17
0.17
2.78
3.49
0.50
Diluted
0.89
1.16
0.16
2.74
3.44
0.49
Shares used in earnings per Class A and Class B
ordinary share computation:
Basic
3,134,975,498
3,092,300,590
3,092,300,590
3,127,809,736
3,087,337,746
3,087,337,746
Diluted
3,173,371,472
3,134,713,201
3,134,713,201
3,172,090,075
3,132,654,290
3,132,654,290
ADS used in earnings per ADS computation
Basic
1,567,487,749
1,546,150,295
1,546,150,295
1,563,904,868
1,543,668,873
1,543,668,873
Diluted
1,586,685,736
1,567,356,601
1,567,356,601
1,586,045,038
1,566,327,145
1,566,327,145
* Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete
agreement etc., and fair value adjustment on music content (i.e., signed contracts obtained for the rights to access to the music contents for which the amount was amortized over the contract period),
resulting from business acquisitions or combination.
** Including the net gains/losses on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to
equity transactions of investments.
*** Represents the income tax effects of Non-IFRS adjustments.
TENCENT MUSIC ENTERTAINMENT GROUP
CONSOLIDATED BALANCE SHEETS
As at December 31, 2023
As at September 30, 2024
RMB
RMB
US$
Audited
Unaudited
Unaudited
(in millions)
ASSETS
Non-current assets
Property, plant and equipment
490
704
100
Land use rights
2,437
2,382
339
Right-of-use assets
367
312
44
Intangible assets
2,032
1,996
284
Goodwill
19,542
19,647
2,800
Investments accounted for using equity method
4,274
4,571
651
Financial assets at fair value through other comprehensive income
6,540
11,777
1,678
Other investments
307
327
47
Prepayments, deposits and other assets
540
454
65
Deferred tax assets
352
388
55
Term deposits
8,719
7,529
1,073
45,600
50,087
7,137
Current assets
Inventories
8
18
3
Accounts receivable
2,918
2,935
418
Prepayments, deposits and other assets
3,438
3,000
427
Other investments
37
48
7
Term deposits
9,937
18,306
2,609
Restricted Cash
31
10
1
Cash and cash equivalents
13,567
10,209
1,455
29,936
34,526
4,920
Total assets
75,536
84,613
12,057
EQUITY
Equity attributable to equity holders of the Company
Share capital
2
2
0
Additional paid-in capital
36,576
36,702
5,230
Shares held for share award schemes
(302)
(514)
(73)
Treasury shares
(6,996)
(7,538)
(1,074)
Other reserves
9,658
16,727
2,384
Retained earnings
16,969
18,106
2,580
55,907
63,485
9,047
Non-controlling interests
1,295
1,744
249
Total equity
57,202
65,229
9,295
LIABILITIES
Non-current liabilities
Notes payables
5,636
3,481
496
Deferred tax liabilities
239
234
33
Lease liabilities
297
235
33
Deferred revenue
148
163
23
6,320
4,113
586
Current liabilities
Accounts payable
5,006
6,523
930
Other payables and other liabilities
3,472
2,786
397
Notes payables
–
2,099
299
Current tax liabilities
567
823
117
Lease liabilities
115
109
16
Deferred revenue
2,854
2,931
418
12,014
15,271
2,176
Total liabilities
18,334
19,384
2,762
Total equity and liabilities
75,536
84,613
12,057
TENCENT MUSIC ENTERTAINMENT GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30
Nine Months Ended September 30
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
(in millions)
(in millions)
Net cash provided by operating activities
1,441
2,165
309
5,360
7,795
1,111
Net cash used in investing activities
(1,142)
(3,337)
(476)
(1,670)
(8,142)
(1,160)
Net cash used in financing activities
(849)
(882)
(126)
(962)
(3,015)
(430)
Net (decrease)/increase in cash and cash equivalents
(550)
(2,054)
(293)
2,728
(3,362)
(479)
Cash and cash equivalents at beginning of the period
12,950
12,251
1,746
9,555
13,567
1,933
Exchange differences on cash and cash equivalents
(19)
12
2
98
4
1
Cash and cash equivalents at end of the period
12,381
10,209
1,455
12,381
10,209
1,455
View original content:https://www.prnewswire.com/news-releases/tencent-music-entertainment-group-announces-third-quarter-2024-unaudited-financial-results-302302181.html
SOURCE Tencent Music Entertainment Group
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Key Market Trends Fueling Growth
The digitalization trend is driving the global economy forward by collecting, organizing, and enhancing data for innovative uses. With over 5 billion internet users worldwide, representing 63% of the global population, and 4.65 billion social media users, the availability of vast user data is a significant market opportunity. In the US, there were 298.8 million internet users in January 2021, a 3.7% increase from 2020. Internet penetration in the US reached 90%, with the average user spending 32 hours online per month, 16 hours more than the global average. AI’s integration into social media marketing is increasing, with platforms like Pattern 89 and HubSpot using AI to manage and optimize ad campaigns. AI-generated commercials analyze campaign success and offer recommendations for improvement, contributing to market expansion globally.
Artificial Intelligence (AI) is revolutionizing marketing by providing personalized experiences for consumers. Companies like Youper use AI for mental health care and emotional health support through personalized conversations based on psychological techniques. AI enables product-driven marketing strategies by analyzing customer data, including purchase history and browsing behavior, to deliver customized recommendations. AI also enhances customer service and support by automating decisions based on data collected and analyzed. Businesses employ AI marketing software for email marketing campaigns, social networks, and smartphone assistants to meet advertiser’s objectives and cater to their target market with messaging tailored to individual preferences. AI interprets IoT-generated data to improve customer experience, order repetition, and customer loyalty. High-speed internet and digital interactions enable real-time ad targeting and personalized ad experiences. AI-driven marketing strategies contribute significantly to business development by enhancing customer satisfaction and improving overall performance.
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Market Challenges
The integration of Artificial Intelligence (AI) in marketing is a growing trend, yet the lack of technical expertise within workforces poses a challenge for market expansion. End-users must have a solid understanding of AI software platforms and the ability to perform regular updates to ensure smooth operations. The fear of technical complexities often deters companies from implementing AI in social media platforms. Before adopting AI/ML algorithms on a large scale, businesses must carefully consider suitable use-cases. These investments can be substantial, making AI an unattainable luxury for many companies. The shortage of AI expertise is hindering the development of advanced AI technology. Currently, the industry focuses on creating narrow AI, resulting in slower adoption rates in industries like advertising. However, the advancement of AI has also led to the creation of new jobs and training opportunities. Despite this, the shrinking AI developer community could negatively impact the global AI in marketing market expansion during the forecast period.Artificial Intelligence (AI) is revolutionizing marketing by providing innovative services and solutions. However, businesses face challenges in implementing AI in areas like customer support, content curation, search engine marketing, social media advertising, and sales & marketing automation. Services require integrating AI with existing systems, while customer support needs context-aware computing for effective solutions. Virtual assistants and sales solutions offer personalized experiences, but require natural language processing and computer vision capabilities. Analytics platforms and machine learning offer real-time data insights, essential for customer-centric marketing strategies. Healthcare industry marketing benefits from AI in patient engagement, dynamic pricing, and offering personalized care to potential patients based on demographic trends. Challenges include hardware requirements, cloud vs. On-premises deployment, and integrating AI with search advertising and dynamic pricing. AI research in generative technology and natural language processing holds great potential. Overall, AI in marketing offers significant benefits, but requires careful planning and implementation.
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Segment Overview
This artificial intelligence market report extensively covers market segmentation by
Deployment 1.1 On-premises1.2 CloudGeography 2.1 North America2.2 APAC2.3 Europe2.4 Middle East and Africa2.5 South America
1.1 On-premises- The on-premises segment of Artificial Intelligence (AI) in Marketing is projected to experience significant growth in market revenue compared to cloud-based deployment during the forecast period. On-premise marketing, also known as merchandizing and local store marketing, enables businesses to reach customers in real-time. Retailers, including department and grocery shops, restaurants, showrooms, and vehicle dealers, employ on-premise marketing to influence customer behavior. AI and machine learning (ML) technologies are increasingly used in on-premise marketing, offering targeted, real-time advertising and customer behavior analytics. Companies like Advertima Vision AG provide AI-based customer behavior analytics platforms, offering smart signage and targeted advertising without relying on facial recognition. SPAR, Volvo, and Mercedes-Benz are among its clients. On-premises deployment of AI applications offers advantages such as higher security, control, and reduced total cost of ownership, making it a preferred choice for organizations dealing with sensitive data. The adoption of on-premises AI solutions contributes to market growth during the forecast period.
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Research Analysis
Artificial Intelligence (AI) is revolutionizing marketing strategies by enhancing efficacy and efficiency in various ways. AI-based technology analyzes consumer behavior through data filtering, predictive analytics, and real-time data to create targeted marketing campaigns. Social media marketing and commercials are improved with personalized conversations using chatbots. In healthcare industry marketing, AI assists in on-site engagement, conversion, and catering to potential patients based on demographic trends. AI-driven marketing strategies in mental health care platforms like Youper use emotional health analysis, personalized conversations, and psychological techniques to provide a superior overall patient experience. AI’s product-driven marketing strategy focuses on understanding consumer needs, while a customer-centric strategy ensures tailored interactions for each demographic group. AI’s role in marketing is transformative, reducing marketing expenditure and maximizing conversion rates.
Market Research Overview
Artificial Intelligence (AI) is revolutionizing marketing strategies by bringing efficacy and efficiency to various aspects of marketing expenditure. AI-based technology, such as predictive analytics, sentiment analysis, and machine learning algorithms, is transforming how businesses understand consumer behavior and preferences. AI marketing plans utilize data filtering and real-time analysis to optimize social media marketing, commercials, and digital communication. Virtual assistants, chatbots, and context-aware computing offer personalized customer relationship services and sales & marketing automation. AI skills are essential for businesses to automate keyword research, market expansion, and content curation in search engine marketing and social media advertising. The healthcare industry is leveraging AI for patient engagement, dynamic pricing, and overall patient experience. Generative AI research is exploring new offerings in mental health care, emotional health, and personalized conversations using psychological techniques. AI technology is also being deployed in the enterprise and BFSI industries for hardware, cloud, and on-premises solutions, as well as sales solutions and analytics platforms using natural language processing and computer vision. AI is transforming marketing by providing customer-centric strategies, virtual assistant applications, and real-time data analysis for demographic trends and conversion optimization.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
DeploymentOn-premisesCloudGeographyNorth AmericaAPACEuropeMiddle East And AfricaSouth America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
Technology
Electra Reveals Design for EL9 Ultra Short Hybrid-Electric Aircraft
Published
4 minutes agoon
November 13, 2024By
Electra’s EL9 Redefines Air Travel Without Airports, Emissions, or Noise
MANASSAS, Va., Nov. 13, 2024 /PRNewswire/ — Electra.aero, Inc. (Electra) today revealed the design of its groundbreaking EL9 Ultra Short hybrid-electric product aircraft, a nine-passenger piloted aircraft built for the electric future that redefines air travel without airports, emissions, or noise. Electra now enters the development phase of the EL9 backed by over a year of successful flight testing of its EL2 Goldfinch two-seat prototype, proving the technology’s readiness for the future of electric aviation.
Electra’s innovative EL9 hybrid-electric propulsion system with blown lift technology enables ultra-short takeoffs and landings in soccer field-size spaces previously limited to helicopters and eVTOLs, but at one-third the cost and with the improved safety and reliability of a fixed-wing aircraft. This unlocks thousands of new locations for direct air service, including small regional airports or unconventional sites like grass fields or parking lots, offering seamless point-to-point regional connectivity for both passengers and cargo. The EL9 aircraft operates with far lower emissions and noise than conventional planes, while its hybrid-electric power system provides extended range and inflight battery recharging, with no ground charging stations required.
“Today’s reveal of the EL9 showcases the dedication of our incredible team and partners,” said Marc Allen, CEO of Electra. “This aircraft is more than a new design—it’s the gateway to a cleaner, quieter, and more affordable future for regional travel. With the EL9, we’re not just making sustainable aviation a reality, we’re redefining how people and cargo move through Direct Aviation, a new category of safe and seamless travel that brings air mobility closer to where we live, work and play.”
The EL9 combines blown lift technology with distributed electric propulsion using four independent battery packs and a small turbine-powered generator that drives eight electric motors distributed along the wing to provide high lift at low airspeeds. The aircraft can take off and land in as short as 150 feet, and cruises at 175 knots. With range and payload to fly missions that matter, the EL9 will carry nine passengers with baggage or 3,000 pounds of cargo for 330 nautical miles, and has a maximum ferry range of 1,100 nautical miles with IFR reserves. It will be certified for IFR and flight into known icing conditions. While the EL9 will be equipped with two pilot crew stations, Electra’s Safe Single Pilot technology with fly-by-wire controls will enable ease of precision landings for a single pilot.
Electra has over 2,100 orders for the EL9 from 52 operators worldwide, representing more than $8 billion in market value. The first test flights are planned for 2027, with certification and service entry anticipated in 2029 under FAA Part 23 regulations.
The EL9 design was presented at Electra’s headquarters in Manassas, Virginia, to an audience of more than 300 guests, including leaders from the aerospace industry, partners, customers, government officials, media, and friends.
About Electra
Electra.aero, Inc. (Electra) is a next-gen aerospace company pioneering direct aviation, the next level of connectivity that will bring air travel closer to where we live, work, and play. The company is building clean tech, hybrid-electric Ultra Short airplanes that fly people and cargo seamlessly without airports, emissions, or noise. Electra’s Ultra Short technology delivers 2.5x the payload and 10x longer range with 70% lower operating costs than helicopters and eVTOLs with far less certification risk. Electra’s team includes some of the most respected and successful entrepreneurs and engineers in novel aircraft design, with over 40 prior aircraft successfully developed and/or certified. Lockheed Martin Ventures, Honeywell, and Safran are among Electra’s strategic investors along with the Virginia Innovation Partnership Corporation (VIPC), Statkraft Ventures, and other private investors. Electra’s contracted customers include NASA, the U.S. Air Force, the U.S. Army, and the U.S. Navy, along with over 2,000 aircraft under Letters of Intent from 50+ commercial customers, including both airlines and helicopter operators.
Investors
Diana Siegel
investors@electra.aero
Media
Barbara Zadina
Zadina.barbara@electra.aero
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SOURCE Electra.aero
Technology
Apogee Indigo’s App Launch at WTE Miami 2024 Set to Transform the Traveler Experience in Miami
Published
4 minutes agoon
November 13, 2024By
Apogee Indigo launches app at WTE Miami 2024, transforming travel with exclusive savings on Miami’s dining, attractions & experiences. Now available on Google Play & iOS!
MIAMI, Nov. 13, 2024 /PRNewswire/ — Apogee Indigo today announced the successful release and testing of their app at WTE Miami 2024, held between October 22-23, where it was showcased to a global audience of travel industry professionals. This launch marked a significant step in Apogee Indigo’s mission to enhance the tourism experience with innovative digital-based solutions. Created specifically for travelers, the app is designed to offer exclusive savings on Miami’s Dining, Attractions & Experiences, making it easier and more affordable to explore the city.
“We’re thrilled to launch our app in Miami, with plans to expand to more than 20 destinations in the US in the near term,” said Ric Roth, Founder & President of Apogee Indigo. “WTE Miami 2024 provided the ideal platform to introduce our app, and the positive feedback we’ve received reaffirms our belief that this is just the beginning of a new era in travel savings and tailored experiences.”
Apogee Indigo is excited to sign nearly 100 distribution partners during and immediately after the event and invites travel professionals from all over the world to become distribution partners.
The Apogee Indigo app is now available for download on Google Play and the iOS App Store, enabling travelers to discover and enjoy substantial savings on Dining, Attractions & Experiences.
About Apogee Rewards, Inc.
Apogee Rewards, Inc. is a Miami-based company that was developed by the founders of Primecard, a membership-based discount program. The mission of Apogee is to provide travelers with a revolutionary way to explore the world. Travelers can plan their curated dining, entertainment, attractions, shopping, and experiences more effectively through the Apogee Indigo app while taking advantage of great savings at their upcoming travel destinations.
Launched in 2023, Apogee Indigo also helps promote local businesses that are looking to tap into the travel industry. Apogee Indigo pre-purchases products from a majority of Merchant Partners, especially restaurants, and provides industry-leading marketing practices to drive customers through their doors. For more information, including how to become a Merchant Partner, visit www.apogeeindigo.com.
Press Contact:
Rohan Roy
Phone
954-932-8950
https://www.apogeeindigo.com
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SOURCE Apogee Rewards, Inc.
Artificial Intelligence Market to Grow by USD 41.02 Billion (2024-2028), Driven by Rising Adoption of Cloud-Based Services, AI-Powered Report Highlights Market Trends – Technavio
Electra Reveals Design for EL9 Ultra Short Hybrid-Electric Aircraft
Apogee Indigo’s App Launch at WTE Miami 2024 Set to Transform the Traveler Experience in Miami
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