US-based Moloco riding Chinese firms' energetic overseas expansion
As the global landscape evolves, an increasing number of Chinese companies are pursuing markets overseas, driven by new opportunities in emerging fields and markets.
Moloco Inc, a United States-based company that offers machine learning-based advertising solutions, is optimistic about this trend, particularly regarding the rapidly growing Chinese market and the rising global prominence and foreign expansion of Chinese firms.
Bruce Li, head of new business for Moloco Greater China region, noted a significant shift since the latter half of last year, with small and medium-sized enterprises taking the lead in the global expansion efforts of Chinese firms.
"Traditionally, Moloco focused on larger clients, particularly in the gaming sector. However, we are now seeing a resurgence in international endeavors, with SMEs demonstrating remarkable strategic acumen," Li said. "Many are choosing to enter less competitive markets, such as Brazil and Southeast Asia, targeting social media and casual gaming products. This strategic avoidance of saturated markets has enabled these companies to carve out niches often overlooked by larger competitors."
In addition to SMEs, traditional Chinese companies from sectors like education are also venturing abroad.
Li emphasized that advancements in AI and machine learning are crucial to this transformation. Enterprises that once focused exclusively on the domestic market are now embracing global expansion, particularly in areas like Q&A services. Notably, two of the leading companies in this field in the US are Chinese firms that have partnered closely with Moloco since their inception, he said.
Another significant trend is the evolving needs of Chinese clients in the international arena. Unlike their overseas counterparts, Chinese companies are increasingly seeking exclusive advertising opportunities, Moloco data showed.
For instance, the strategic partnership between Moloco and KakaoTalk, a popular messaging app in South Korea, allows Moloco to offer unique traffic and advertising placements to Chinese clients, meeting their specific needs in this key market.
This year, nearly half of Moloco's new clients are from non-gaming sectors, including social media, artificial intelligence, fintech and lifestyles, Li said.
Founded in 2013, Moloco now has over 10 offices in countries including the United Kingdom, South Korea, China, Japan and Singapore, with more than 600 employees globally. The company enables its clients to analyze their big data to customize ads for various customers and monetize those ads with Moloco's machine-learning technology.
Looking ahead, Li said the company will continue to remain committed to supporting Chinese enterprises in their quest for global expansion. With SMEs leading the charge and companies in traditional sectors broadening their horizons, the future looks promising for Chinese businesses venturing beyond their borders.
Data from mobile app data analytics company Sensor Tower showed that in 2022, the top three globally grossing apps were all Chinese-developed. Social media platform TikTok led with $2.05 billion, followed by gaming app Honor of Kings at $1.65 billion, and Genshin Impact at $1.25 billion, highlighting the global reach and appeal of Chinese apps.
"Chinese app developers have not just entered the global arena of entertainment, e-commerce, fintech and gaming — they've taken center stage," said Tom Cui, chief operating officer of Sensor Tower. "The consistent prevalence of Chinese apps atop the download charts in these industries is a testament to their remarkable adaptability and their ability to deliver what global audiences want."
"It signifies that Chinese marketers have decoded the secret of not just entering, but captivating international markets. Their success is an embodiment of relentless innovation, localization excellence and a deep understanding of user preferences worldwide," Cui said.
