The traffic growth of mobile internet applications has slowed down, but generally still has room for growth. The penetration rate of Chinese mobile internet users has further increased. As of December 2021, the number of Internet users in China accounted for 73.0% of the total population, with 1.029 billion mobile phone users and 99.7% of Internet users using mobile phones to access the Internet.

The penetration rate of mobile phone internet users in China is about 72.8% of the entire population, which has already reached the 72%-90% penetration rate in developed countries such as Europe and the US. In Q1 2022 relative to Q1 2021, the three categories of food delivery, video services and download distribution achieved double growth in scale year-on-year. 

The overall rise in user usage time, users' use of mobile devices 

At a time when user scale growth is slowing down, China's mobile app users still saw an increase of more than 5% in the usage time per day in Q1 2022 compared to the same period last year, reaching 332.9 minutes, more than 5.5 hours. The overall increase in user usage time reflects that users are using their mobile devices more often. Looking at the distribution of user hours, video applications account for over 43.9% of user time.

Enterprises are mainly targeting the sinking market; while the Z generation, senior citizens and others still have personalized needs that have not been met. People in cities below the third tier and rural areas accounted for 68.4% of China's population, with huge potential for growth, while their needs in various areas such as entertainment, social networking, e-commerce and information are far from being met.

In addition to that, the emergence of new terminals has brought the possibility of new traffic. The seamless flow of multiple terminals has opened up a new blue ocean for the emergence and distribution of new applications. Along with artificial intelligence and big data technologies, intelligent operation functions and related services will continue to improve, and the growth of user operations will continue to reduce costs and increase efficiency.

Mobile advertising market of nearly trillions lays the foundation for applications to gain volume and realization.

In 2021, the size of the mobile advertising market will keep growing rapidly, with a scale of more than 800 billion yuan and a growth rate of over 20%, and is expected to exceed a trillion in 2022. The operation strategy currently places more emphasis on marketing based on crowd segmentation, which focuses on the conversion effect and the enhancement of user lifecycle.