Messaging App Market
Messaging apps LINE and KakaoTalk, which have gained popularity through their stickers and emoticons, are expected to vie with each other using character-driven marketing this year.
According to industry sources on March 30, Naver unleashed an aggressive character-driven marketing campaign with the opening of the LINE Brand Store on March 10, where users can purchase LINE’s character products. Previously, those products were sold at Naver Store. In fact, stickers have become one of LINE’s major income sources, as shown by the fact that they turned over around 27.4 billion won (US$25.7 million) in the fourth quarter of 2013, accounting for 20 percent of total revenue.
LINE increased its brand awareness with character-driven marketing through stickers at the time of its launch in Japan. The success is mainly due to its strategy of utilizing image communications by reflecting the characteristics of that country in which it is common to improve a corporate image through characters.
The mobile messaging company now appears to be focusing on increasing content that combines games and characters, as evidenced by the release of its defense game “LINE Rangers” early in March, with LINE characters in the game.
KakaoTalk, which introduced emoticons for the first time, is also going to launch its character business this year. So far, Korea’s top messaging company Kakao has been selling character products exclusively at Kakao Shop on its mobile messaging platform. However, the firm is actively seeking to expand customer contact points through pop-up stores.
A Kakao associate said, “During the first half of this year, we are scheduled to open pop-up stores where visitors can experience KakaoTalk Friends characters themselves, in partnership with a local large retailer. We are also planning to work on character licensing so that other companies can make products using KakaoTalk characters."
The firm is aimed at helping licensed companies make various kinds of character products, creating a win-win situation for the industry, and contributing to an increase in secondary products.
The associate also explained, “Emoticons make up 10 to 15 percent of the total amount transmitted in KakaoTalk chat rooms,” adding, “Animated characters have become a representative communications method, and they are more popular than videos, images, or pictures. So, we will adopt a character-driven strategy this year.”