Text-based social media grows in first quarter

Thursday, Jun 20, 2024 12:34

A chart shows the top social media platforms in terms of penetration rates. — Photo courtesy of Decision Lab

Facebook, Zalo and YouTube remain the platforms with the highest penetration rates in the first quarter of this year, according to a report from a market research think tank.

The penetration rate of TikTok, the popular short video app, has declined in the last quarter, standing at 66 per cent in Q1 2024. In contrast, that of X (formerly Twitter) has rebounded significantly, nearly as high as in Q3 2023, according to Decision Lab's latest 'Connected Consumer Report for Q1 2024.'

Notably, Threads, Meta's public conversation app, is gaining steady adoption across age groups, especially Generation Z. Its penetration rate reached 5 per cent in Q1, a two percentage point increase over the past three quarters. Although modest, this growth indicates a growing interest in text-based platforms, significantly among younger users.

Thue Quist Thomasen, CEO of Decision Lab, said: “As text-based platforms have demonstrated initial growth, early adopters of new platforms like Threads can gain significant advantages and have ample experimentation opportunities.

"However, it is crucial to recognise that exploring new channels is a time-intensive process that does not always yield successful outcomes. Moreover, given the ever-evolving nature of the social media landscape, predicting the next trend with certainty is challenging."

"Therefore, businesses must carefully evaluate their goals, target audience and available resources before investing in text-based platforms while remaining agile and adaptable to the dynamic digital environment,” he said.

Per the report, Xanh SM has become the second-largest ride-hailing app in Việt Nam, both in terms of penetration rate and preferences. Additionally, the electric ride-hailing app now holds a 15 per cent preference rate for car and bike ride-hailing services, positioning it second only to market leader Grab.

Nguyễn Văn Thanh, Group CEO of Xanh SM, said: "As the second-largest ride-hailing platform in Việt Nam with over 20 per cent market share in the first half of 2024, we are committed to pushing boundaries and creating convenient and sustainable transportation solutions."

The ride-hailing market in Việt Nam has seen significant shifts in recent quarters. While Grab remains the dominant player with a 64 per cent market penetration rate, its business has declined over the last year.

In contrast, other ride-hailing apps in the market have either maintained steady performance or have started to rebound lately. This is a clear sign that the competitive landscape is evolving, with players making inroads and capturing market share from the incumbent leader, the report said. — VNS

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