Alibaba Mobile GMV increased 157% y-o-y and contributed 51% of total GMV, compared to 42% in FY3Q. Mobile monthly active users 289m, up 77% y-o-y, representing 24m net adds q-o-q. In addition, mobile monetization rate improved to 1.73% compared to 0.98% a year ago.
The improvement in mobile monetization successfully offset a decline in PC advertising revenue, making the blended monetization at 2.17% of GMV, relatively stable compared to 2.18% at the same time last year. The company will keep investment in mobile operating system, and upgrading Tmall app, to make it more differentiated with Taobao app. This will improve user experience and generate from organic traffic growth in Tmall app. Due to the (1) increasing number of users shifting from PC to mobile and higher engagement in mobile, as well as (2) higher value added data available (local based data, buyer profile/behaviour data) in mobile, which led to more customized search results, management is confident that mobile monetization rate could surpass PC in the long term.
