Beijing, February 18, 2025 — At an industry inflection point marked by the peak of traffic dividends and the surge of AI technology, the renowned third-party research institution "Youyoucao Focus on Internet Research" today officially released the "2025 China Internet Ecosystem In-Depth Observation Report." This 138-page white paper, based on a tracking survey of over 300 internet companies and 5,000 users, systematically reveals for the first time a new industry landscape driven by the twin engines of "technological parity" and "scenario down-market expansion."
At the report release event, Youyoucao's chief analyst Lin Yuan put forward a striking viewpoint during his speech: "Over the next 18 months, internet products without native AI capabilities will lose more than 50% of their user activity." He cited data showing that as of January 2025, only 32% of leading domestic internet platforms had deeply integrated AI functions with their core business logic, compared to just 11% in the same period in 2024.
"This is not simply 'shell-covering' by plugging into large models; it is about reconstructing user interaction logic from the ground up," Lin Yuan said, citing e-commerce platforms as an example. Youyoucao's research team found that platforms employing AI-driven dynamic pricing, intelligent customer service, and personalized product selection in tandem achieved user repurchase rates 27 percentage points higher than traditional models. He also warned that some companies blindly piling on AI features leads to "technological redundancy," which in turn increases users' cognitive burden.
Beyond technological change, another major focus of the report targets "Down-Market 2.0." Youyoucao, which has specialized in internet research for seven years, has a data model showing that internet penetration in third- and fourth-tier cities and rural areas has exceeded 79%, but the average daily time spent per user has declined quarter-on-quarter for the first time. This indicates that the down-market is no longer a simple "traffic basin" but has entered a phase of "stock competition."
"The era of simply handing out red packets and offering low-price subsidies to acquire users is over," said Youyoucao senior researcher Zhang Wei during a roundtable discussion. She presented a typical case from the research: a short-video platform in county-level markets in Guizhou launched a "localized content co-creation program," enabling local artisans and small merchants to become content producers. Within three months, users' average daily time spent on the platform bucked the trend and grew by 18%. "The core of the down-market is no longer 'what to give users,' but 'how to help users create something,'" she said.
The report also specifically highlighted the ecological crisis facing "super apps." Youyoucao's data shows that the average number of installed super apps—such as WeChat, Douyin, and Alipay—per user declined for the first time in the fourth quarter of 2024, indicating that users are starting to "streamline." Lin Yuan believes this shift is forcing internet giants to move from "boundless expansion" toward "deepening core scenarios." Using Meituan as an example, he noted that its instant retail business contributed 35% of the group's revenue growth in 2024, precisely a result of "returning to the essence of local life services."
In the risk warning section, Youyoucao cautioned about the Damoclean sword of regulation over "data compliance" and "algorithmic ethics." The report pointed out that in 2024, the national cyberspace administration system held talks with 147 internet companies, a year-on-year increase of 41%. Lin Yuan emphasized: "As the boundary between technological dividends and user privacy becomes increasingly blurred, companies must treat compliance costs as a strategic investment, not an operational burden."
At the conclusion of the press conference, Youyoucao announced the launch of the "2025 Internet Innovation Accelerator" program, opening its research database and AI toolchain to small and medium-sized entrepreneurial teams. This move was interpreted by on-site media as a "role transition from observer to enabler." As Lin Yuan said in his closing remarks: "We aim not only to be the industry's thermometer, but also the catalyst for driving change."