Good day, and welcome to the Bilibili 2023rd Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Juliet Young, Senior Director of Investor Relations. Please go ahead.
Thank you, operator. Please note the discussion today will contain forward looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liability as established by the U. S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors.
Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect Bilibili's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update forward looking information except as required by law. During today's call, management will also discuss certain non GAAP financial measures for comparison purpose only. For a definition of non GAAP financial measures and a reconciliation of GAAP to non GAAP financial results, please see the 20 2Q3 financial results news release issued earlier today.
As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on Bilibili's Investor Relations website at ir.bilibili.com. Joining us today on the call from Bilibili's senior management are Mr. Ray Chen, Chairman of the Board and Chief Executive Officer Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer and Mr.
Sam Fan, Chief Financial Officer. And I will now turn the call over to Mr. Fan, who will lead the prepared remarks on behalf of Mr. Chen.
Thank you, Juliet. And thank you, everyone, for participating in our 2020 Q3 conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. We see a golden opportunity to expand our reach in today's market.
To seize this window, we step up our approach to user growth We are focused on further growing our content, expanding our brand awareness and the targeted channel acquisition. This was especially fruitful in our Q3 peak season. As a result, our user base hit a record high. In August, our MAUs exceeded 200,000,000 milestone, marking a new monthly recall. Total MAU for the Q3 were up 54% to 197,000,000 and DAU were up 42% to 53,000,000 both on a year over year basis.
Mobile users also continued to grow at a faster pace. Mobile AMUs were up 61 percent year over year to 184,000,000 in the 3rd quarter. Our users are highly engaged, spending an average of 81,000,000 per day on our platform, making Bilibili one of the stickiest video community in China. The quality growth of our users is not only reflecting the high engagement levels, but also in the paying user conversions. NPUs were up 89% year over year, reaching 50,000,000 in the Q3.
And our paying ratio improved to 7.6% from 6% to 2% in the same period last year. This increase to drive our top line expansion in the Q1. RMB3.2 1,000,000,000, up 74% year over year. While we grew our top line, we also improved our gross margin. Gross margin was 23.6% in the Q3, up from 18.9% in Q3 last year, and we are gaining even more operating leverage.
While Bilibili has become a household name among young generations, there are large groups of potential users who are just beginning to learn about us. The J and Z community acts as our anchor as we begin to cast an even wider net. Today, we are gaining traction with more diverse demographics than ever before. Marketing campaigns such as our newly introduced slogan Bilibili, all the videos you like has helped us to define and promote our appeal to mass audience. During the Q3, we launched a series of online and offline campaigns to promote our brand proposition to an even broader audience across different demographics.
This strategy is working and we are carrying these efforts into the Q4. Our industry partnerships are also strengthening our content offering and brand. In August, we entered into a 5 year business cooperation agreement with Huaxi Media through a strategic equity investment, in which we can exclude the broadcasting rights to Huaxi existing and upcoming high quality movies and TV drama theaters. We have also entered into a 3 year exclusive partnership with Rise Game for exclusive live broadcasting ride of League of Legends World Championship. This has significantly enhanced our position and brand in the important e sports genre, especially during the S10 this year.
And in October, we deepened our partnership with Sony by signing a strategic agreement with a subsidiary, AmiPlex, to bring more premium anime content and mobile games to our users. These expanding alliance not only enrich our content offering, but also demonstrate that both domestic and international industrial leaders have common recognition for our unique value in China's entertainment market. While we are working to build our brand and attract more users, increasing demand for high quality video content allow us well to capitalize on the growth prospectus. China represents the largest online video population in the world. According to the Cinic report, by the end of first half of twenty twenty, near 819,000,000 users in China consumed online content in video format.
Faster networks and a smarter hardware enable more accessible content creation and consumption. Our experience over the past decade has made us a pioneer of videoization movement. We are committed to capturing this market opportunity by further execution our growth strategy, which we believe will yield Kansibo return in the long run. With that overview, I would now like to provide some more color on our content, community and commercialization activities. I will begin with a review of our content.
Our PUGV content ecosystem is the cornerstone of our business and the main engine that powers our growth vehicle. For the Q1, we had approximately 1,700,000 content creators uploading 5,600,000 videos per month, representing increases of 51% and 79% respectively, both year over year. We continue to cultivate our nourishing soil to allow content creators to grow and forage by promoting our generality and ingenuity of our algorithm enabled the highest quality of original content to quickly gain traction and expand its fan base. In the Q3, the number of videos that achieved 1,000,000 video views increased 73% and the number of content creators with over 10,000 followers grew 75% growth year over year. Meanwhile, we continue to help our content creators and back monetary rewards through our cash incentive program and our newly launched advertising platform, Sparko.
The matchmaking platform is designed to better connect advertisers and content creators and bring more commercial opportunities to our creators by providing a safe and scalable platform native ads. Each of these components help us maintain and grow this important POTD ecosystem. Our top 5 verticals in terms of video views in the Q3 were lifestyle, game, entertainment, anime and tech and knowledge. Among these, tech knowledge is emerging as one of the fastest growing sectors. Learning on Bilibili is also training so as many close lives attract to our platform looking for informative and educational content.
In the past 12 months, there were nearly 100,000,000 users across different age groups with knowledge related videos on Bilibili, making us one of the top learning platforms in China. While we enhance our content offering in our leading verticals, are actively expanding our content reach in new categories. The automotive sector was one of them. In Q3, video views in this genre grew rapidly at 177% year over year. This reflects our longevity and the same power with users at Day Metro.
In this case, our Kong JV users have come to a live stage for an auto consumption. This transition also help us attract wide demographics and open new advertising opportunities across broader industry groups. Turning to our OGB, our investment in IP content is paying off. With our stronghold in this genre, Bilibili produced Chinese anime not only attract massive new users, but also become the most effective driver of premium memberships. This is especially true for our self produced Chinese anime, Cap Lebon, Yuanlong, generating 260,000,000 in just 3 months since its launch.
In September, we were excited to welcome the 3 in TV drama, Renfoyang, Kunshan, Shang and Shenkeng to our platform, marking the 1st TV drama to form our collaboration with the Huangxi Media. This show was an immediate hit of the release and the trended number 1 on Bilibili Mouse search list for weeks. This show has generated 410,000,000 video views, setting a new record in this category. We are also reaching new heights for our documentary and variety show department. Our very first self produced musical variety show, Rev for Youth, received outstanding reviews beyond our typical community, generating approximately 410,000,000 video views and 8,200,000 bullet charts.
This success will not only enrich our music category, but also attracted and inspired a great number of musicians and music lovers. Looking at documentaries, we believe our recent agreement with BBC Studio is a strong endorsement of our documentary quality and will further enhance our content library. Also, building on the success of last year's gala, we will be arriving another SMARTING New Year Eve gala event. We expect this year we'll bring our community more excitement and joy. Turning to our community, while our user growth continue to rise, we set a number of new records across our key community metrics.
In the 3rd quarter, our daily video views reached 1,300,000,000, up 27% year over year. Our users generated 5,500,000,000 monthly interactions through bullet charts, comments, likes and Bilibili Moments posts, up 117% year over year. The number of our official members is also on the rise. At the end of Q3, we had 97,000,000 official members who passed our 100 question exam, up 56% year over year. Retention levels also remained strong, well above 80%.
With a decade of experience in our belt, we believe our community remains one of our biggest competitive advantages and most in the evolving online entertainment industry. Turning to our commercialization progress. The growing traffic on our platform fills each of our business lines as well as we roll out more premium content and services to meet our users' diverse entertainment needs. Our game business. Revenue from our mobile game business were RMB1.3 billion, up 37% year over year, accounting for 40% of our total revenues.
Building our massive game lover base, we continue to expand our game offering in diverse genres as we maintain the popularity of our existing titles. Our new blockbuster game Princess Connect, to resonate with our fans and attract new users. It was another strong testament that our robust distribution and operating capabilities in the ACG genre. In October, we renewed our exclusive FGO license with Annie Plaggs and celebrated the game's 4th anniversary. Additionally, we launched a few new titles during the Q3, which include Animistic, Wang Lingxiuan, Zhang Yaoxin and Ashar, Huizin Jiangxin, all of which have been well received by our users.
And for our game top line, we have 10 titles in diverse genres that have acquired approvals and are ready to be released in the coming quarters. Next in queue is World Art Online, Zaojian Shen Yi, planned for launch at the beginning of 2021. Looking at our jointly operating games, we continue to work with the leading game developer to bring our user premium titles. Our solid reputation, strong game operation capabilities and high destiny gamer demographic have made Bilibili the go to platform for our joint operating partners. In September, as its main Android partner in China, we began jointly operating the highly anticipated Gensheng impact of Yuan Shen.
The massive success of Yuan Shen and our operation is another feeder in our path. Other near term joint titles include a plan to distribute NetJi's Harry Potter. Turning to our VAS business. Revenue from VAS increased by 116% year over year, reaching RMB980 1,000,000 in the Q3. Our growth was mainly driven by increased contribution from premium memberships, live broadcasting and other value added services.
As our brand name continues to spread, we are attracting business partners and live broadcasting hosts and adding new and diverse content to our growing library. Esports is a prime example. Our League of Legends World Championship live broadcasting ride has secured important place for Bilibili in the soybean esports genre. And we showcase our capabilities, more esports hosts and lovers are turning to Bilibili immersive live broadcasting experience. For the entire S10 Championship season, total live broadcasting page views related to the game increased by over 300 percent compared with F9 last year.
We are pleased to see our user growing willingness to pay for advanced or exclusive access to our OGV content. By the end of the Q3, we had 12,800,000 premium members, up 110% year over year. As we roll out more excitement exciting content, we are confident we can continue converting more paying subscribers. Finally, our advertising business despite challenging macroeconomic environment, we delivered another accelerated growth in our advertising business. Revenue from the segment reached RMB558 1,000,000 up 126% year over year.
Our efforts to spread our brand name not only attract wider user groups, but also interest many new business partners. Our titles across different industries are turning to Bilibili to tap into the converted young demographic. Our top 5 leading verticals in the Q3 were e commerce, food and beverage, games, PC products and automotive. In summary, we are on an excellent growth trajectory. With solid execution of our user growth initiative, we continue to improve our brand equity and reach new heights across key user metrics.
The industry trend toward regularization is working strongly in our favor as we provide the most unique community experience to both content creators and the users. Capitalizing on this momentum, we aim to further grow our brand, enrich our content offering and unleash the great potential of our expanding online entertainment ecosystem. This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the Q3 of 2020.
Our total net revenues increased by 74% year over year to RMB3.2 billion, exceeding the high end of our guidance. With our mini games accounting for 60% of the revenues, we are pleased with the commercialization progress of our NAND game offerings and our ability to convert our online traffic into paying users. The average number of monthly paying users increased by 89% year over year, reaching 50,000,000 in the 3rd quarter. Cost of revenue increased by 63% year over year to RMB2.5 billion. Revenue sharing costs, a key component of cost of revenues, were RMB1.2 billion, a 77% increase from same period in 2019.
Gross profit increased by 170 percent year over year to RMB762 1,000,000. We are seeing more operating leverage from our diversified revenue stream, With more revenue contribution from our higher margin business as well as additional income from paying users, our gross profit margin continued to improve, reaching 23.6% in the Q3. Total operating expenses increased to RMB1.8 billion, up 138% from the same period of 2019. Selling and marketing expenses were RMB1.2 billion, representing a 2 27% increase year over year. The increase was mainly attributable to the increased channel and marketing expenses associated with our app and brand, as well as increased expenses for our mobile games and sales and marketing personnel.
Building our brand appeal among the broader audience is one of key initiatives in 2020. This strategy is according to our strategy market gains that we think will have long term efforts. We plan to continue to build on momentum to further strengthen and expand our virtuous growth cycle. G and A expenses were RMB253 1,000,000, representing 55% increase year over year. The increase was primarily due to increased headcount in general and administrative personnel and increased share based compensation expenses.
R and D expenses were RMB41 1,000,000, representing a 62% increase year over year. The increase was primarily due to an increased headcount in research and development personnel. Net loss were RMB1.1 billion for Q3 of 2020 compared to RMB406 1,000,000 in the same period of 2019. Adjusted net loss, which is a non GAAP measure that excludes the share based compensation and amortization expenses related to intangible assets acquired through business acquisitions, was RMB990 1,000,000 compared to RMB343 1,000,000 in the same period of 2019. Basic and diluted net loss per share were RMB3.08.
Adjusted basic and diluted net loss per share were RMB2.76. As of September 13, 2020, we had cash and cash equivalents, term deposits as well as short term investments of RMB14.1 billion or US2.1 billion dollars compared to RMB8.1 billion as of December 31, 2019. Our monetization capabilities continue to improve as we leverage our growing traffic base of users across an increasing broader spectrum of demographics. We will also continue to roll out more premium content and services to convert more paying users. We believe that over the longer term, these monetization efforts, high paying user conversion rates and scale will yield an improved bottom line.
With that in mind, we are currently projecting net revenue for the Q4 of 2020 to be between RMB3.6 billion and RMB3.7 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer Your first question on queue comes from the line of Daniel Chen from JPMorgan. Daniel, please ask your question. Your line is now open.
Hi. This is Alex from JPMorgan. I have a question regarding the user growth and the user profile of the newly added users. So you guys have been continuing delivering very strong user growth in the past several quarters. Can you talk about the typical new user profile that you guys have acquired in the recent quarters?
And what exactly is the value that you offer to these guys to drive the user growth? Also lastly, what's the user growth outlook into the next one to 2 quarters?
So Mr. Chen said the profile of the new users actually hasn't changed much compared to historical data. The average age of our users is about 21 years old and the average age for the new commerce is about 20 years old. We see a very balanced geographic mix with about 50% of the users coming from 3rd tier city and below. And notably, we've seen that the users above 30 is actually gradually increasing its contribution year over year.
So we've always been attracting our users from our content. The reason why users come to Bilibili is that they can find what they like, what type of content they like on Bilibili. For example, animation, music, game, digital content, etcetera. So based on the data, we have been experienced a very fast user growth. On the quality side, we've also maintained a very high quality of growth based on the users retention, their engagement, also the paying conversion rate.
We are quite happy and satisfied with our high quality growth. Because we have a very healthy self sustaining ecosystem, which is our massive content creator is continuously creating high quality content. We are quite optimistic about the user growth trend as we look into the future. And also, videoization is an inevitable trend that Bilibili as a pioneer in the video community industry, we are quite confident we'll continue to deliver this high quality growth.
So
mid last year, we have set a new user target, which is to reach 180,000,000 for 2020,000,000 and 220,000,000 for 2020 1. As you can see, we have already achieved this year's user target and we are also confident to achieve next year's user target in advance. And we are likely to set up a refresh our new user target at beginning of next year.
Your next question comes from the line of Yuan Zhang from Citi. Yuan, please ask your question. Your line is now open. So
I have two questions regarding content ecosystem. So historically, BDI has been focused on documentary and classic drama series and movie. Now increasingly, we see some premium content coming out, for example, the rep for you, the variety show and also Ren Xue Yao, the drama series, also F tournament for the e sports content. Can you share your thoughts on premium OGV on the non media? And what role do we play when getting our ecosystem?
And secondly, so if we take a step back, let's see the broad industry for short video is 100 percent from TOC where the non video, the majority the TV are coming from licensed content. So how do you see the little video? If we expand our user base to a much bigger level in terms of TVV, what ratio do you think it would be between PUGV and OGV? And what is the implication for content? Thank you.
So before we get into the strategy of our OGV business, I want to reemphasize video as Bilibili's core business, which includes PUGV, OGV and live broadcasting. And the brand upgrade that we've been focusing on this year is proposing all of the videos you like, which actually includes short form video, long form video and mid form video. And we'll continue to cultivate and reinforce our content offering in video services based on users' needs and we'll also continue to invest in our OGV content. So I would also like to emphasize that our PUGV content creator ecosystem remains the core of our business. And from the engagement level and our active content creator and content submission, all these key data continue to show that we have a very strong position in the PUGV ecosystem.
And the PUGV component will be Bilibili's unique advantage in running our OGV business. And for future as we look into future, we'll further to integrate our OGV content ecosystem with our PUGV content ecosystem. So for the OGV strategy, going forward, will continue to focus on self produced self publishing and will be on quality driven, IP driven and will also serve our content ecosystem. We hope that Bilibili Produced will be a label for high quality content And at the same time, we'll be focusing on improving our ROI and paying conversion. So Bilibili started to get into the self produced Chinese anime back in 2017.
And in 2018, we started getting to the documentary self production. In 2019 into variety show self production. And for this year, we are making few attempts into the real person TV and movies for the Internet users. And we have already formed a very integrated methodology to how to get into certain verticals. As for now, Bilibili has already become the go to platform for animation and documentary and user already have the perception that Bilibili has the best in those categories.
And for this year, our attempt in the TV, movie and variety shows, for example, Run for Young and Rap for Youth has generated a very good feedback among our users and received very high ratings across all platforms. And this has been a show mark for our attempt in tapping to new content categories. For those content, the revenue from the premium membership as well as the revenue from sponsorship and advertisement, actually, the revenue has already exceeded our expectation. We are quite confident to continue to try out more new content offerings in those categories. So the value for OGV for visibility, I believe that there are several factors.
1 is premium memberships, advertising revenue, new user attraction and the add on value for our PUGV ecosystem as well as IP generation. And in the short term, we think we have already formed a virtuous cycle where the premium membership revenue and ad revenue has pretty much covered our OGB content cost. And our 1st 3 quarters this year, operating cash flow for the 1st 3 quarters for this year is positive. And as for our membership, we have achieved outstanding results. As end of Q3, we have 12,800,000 paying member premium membership, which grew 110% year over year.
And the quality of those members are also high. About 80% of them have signed the annual membership or automatic renewal membership. As for the sponsorship and advertising revenue associated with our OGB business grew 2 30% year over year. All this all of our key projects has become a very valuable advertising outlet source for all advertisers. So in summary, we believe that OGV has a very important strategic role in our business.
So, the OGB's high quality content actually serves very, very well for our user growth. For example, the Cap reborn, the Chinese anime and Run For Young, all this latest high quality OGV content has been attracted a lot of new user coming onto Bilibili. And once they join Bilibili, the majority of them stay on Bilibili to consume more PUGV content. And actually, the new users that were attracted by those OGV, their retention is quite good. So as for the variety shows, Raff 4 Youth has been a quite successful attempt for Bilibili.
Despite music variety show or specifically rap related variety show have been around the industry and there's few precedents, but we are still to make a new breakthrough in these verticals. And our PUGV content ecosystem continue to reinforce the effect and influence of this show. A lot of the derivative content were produced by our content creator. The overall video views related to the derivative content has reached a mere 300,000,000, which also helped us to further expand into the music category by attracting a lot of music lover or musicians to join Book Belly. And also for this show, we also generated quite decent sponsorship revenue and advertising revenue.
And because we have an integrated product chain on Bilibili, we continue to extend the IP's value by launching new music label, Waves, and launching a series of offline concerts related to the show. So on Bilibili, we are able to further extend and enhance the value of the IP. So to summarize, we believe the value of the IP can be further enlarged on the resiliency ecosystem, which includes game, anime, TV, movies, merchandise and multiple offline events. And going forward, we are looking to further integrate our POGV and OGV content ecosystem.
Your next question in queue comes from the line of Binnie Wong from HSBC. Binnie, please ask your question. Your line is now open.
Hey, Rachel, Sanjung, Juliet, Jazanhao. First Congrats on an amazing set of results, right, and also a strong outlook. It was I think the midpoint is ahead by 12%. Wondering if you can comment a bit on the competitive landscape. We're impressive to see your monetization, right, advertising, live streaming or continue triple digit growth.
And if you look at engagement here, it seems to retreat a bit, right? If you look at the time span, right, 3Q is a slight decline, but 3Q usually is the strongest in the past years. And DAU, MAU ratio also come down to 27%. So anything that we should be aware of structurally? And how do we see the competitive landscape among the different entertainment platform evolves?
And especially as we see some of your short video and live streaming players are also very aggressive in growing their advertising business in particular. So how do you see that evolve? I understand that we have a very strong ecosystem here, but I just want to hear a bit more into how you see as these players getting more aggressive, more capital? And then how will you see it? Thank you so much.
So as for the user engagement matrix, we're actually seeing a quite positive matrix from the time spent, which is 81 minutes in Q3 compared to 79 minutes in Q2 this year. And overall, community engagement in Q2, 5.4 1,000,000,000 times versus 52,200,000,000 in Q2. And also the metrics from view used per user per daily is also improving. So in general, we are still carrying out this high quality user growth momentum in the Q3. As for the competitive landscape, in the video business, the competitive landscape has always been fierce, whether it's competition between ABC or DEF.
The billion of billions of people have been around for 12 years. We have witnessed many player come and go. And most importantly, we believe the trend of utilization represents a huge market opportunity for the entire Internet service industry. And as a pioneer in this space, Bilibili is well positioned to capture in this market opportunity. As for the advertising business, we believe the advertising value for certain platform actually is a reflection of the users' value.
So on Bilibili, we have captured the best set of users in terms of time spent, in terms of user engagement as well as the user cohort. So that's been backing up our advertising revenue growth. At the same time, we continue to improve our advertising efficiencies, launching innovative ad product. That's also helping to reaccelerate our ad revenue. And as our brand perception and brand power continue to increase, Bilibili has now became a must invest platform across many advertisers.
Your next question comes from the line of Alex Poon from Morgan Stanley. Alex, please ask your question. Your line is now open. I'll translate my question. So my question is regarding advertising business.
We have seen year over year acceleration for a couple of quarters already. Can you share with us the drivers behind the strong growth and what's the outlook for Q4 and 2021? Thank you very much.
So as Weizong mentioned earlier, there are a lot of fundamental changes behind our advertising revenue. So, first of all, Bilibili's user continue to deliver a high quality growth. On Bilibili, there are about half of the YYON generation in China have been active on Bilibili, which is the golden cohort for brand advertisers. And also, the brand advertisers are able to view their brand production and influence user buying decision on Bilibili. And we have more and more high quality content continue to reach mass market audiences, which allows Billabilly to become the must invest, the go to platform for advertisers.
And we continue to improve our advertising efficiencies as we continue to enhance our data center platform to better support our commercialization efforts and we'll continue to roll out more innovative ad formats and ad products. So despite the challenging macro environment as more people think it's getting more and more tougher in the advertisement business, Bilibili are able to deliver accelerated advertisement revenue for 5 consecutive quarters. As we look into 2021, we'll continue to improve our overall integrated marketing capability to launch standardized and scalable integrated marketing solutions. And we'll continue to improve our ad efficiency on single users and focusing on improving the ad efficiency for our vertical players, continue to improve our services, service quality for different advertisement verticals. And we'll also continue to launch innovative scenario based commercialization method, which includes multi scenario, multi screen solutions.
So as for the 2020, we believe our advertising value has been widely recognized by our advertisers. As we look into 2021, we're quite confident to continue to carry out this positive growth momentum.
Your next question comes from the line of Lei Zhang from Bank of America Securities. Lei, please go ahead and ask your question.
Thanks management and congrats on the strong results. Two questions. First on the sales and marketing, can you give us some breakdown for sales and marketing in Q3? And what is the trend in next 1 to 2 quarters? And secondly, I want to follow-up on the competitive landscape.
Do you observe the short video platform actually allocate relatively higher percent on mini video part and any updates you can share with us? Thank you.
Okay. Let me take your first question. First of all, we had over RMB14 1,000,000,000 cash reserve. And we also achieved like positive operating cash flow in the 1st 9 months of 2020. So we have very sufficient cash reserve that will support our investment in the different areas.
As we mentioned before, we pay close attention to the ROI, our investment in selling marketing in terms of the, for example, the cost per activation and the conversion and the retention. When the target will drive, we'll keep doing the investing. In Q3, everyone knows that, but to see them to acquire users. So we target to invest in user acquisitions through different channels, including the app store, the CSaaS channels and OTT channels. We also invest in brand advertisement to promote our new slow the Bilibili or the videos live.
And we also attend and organize some offline ACG related events in different cities during this summer. As a result, you already saw that MAU will grow like 25,000,000 quarter over quarter and all the family will surpass 200,000,000. As mentioned by Carly, we see very good return on the membership conversion and advertising when our use the field grew. In Q4, generally, it's cost of a season for the MAU addition, but we will not spend that much. So in terms of the total selling and marketing and the percentage of total revenues will be lower than compared with Q3 this year.
And we are really focused on the user retention and the paying user conversion in Q4.
So as for your second question, I wonder the concept the the video, but rather on the quality of the video. It's very easy to change the length of
the video, but it's difficult to
create the high quality content that users like. So, whether it's long form or short form, it's probably a scenario based, but it shouldn't be a format or product concept. So, as for Bilibili, we offer video lengths range from dozen seconds to few hours and each type of video has different audiences. And for different content categories, the length also varies. For example, the music categories, majority of the video is less than 10 minutes.
And for games and lifestyle, it could up to hours. So, we don't think it's a concept of the length. It's actually the concept of the content. And at Bilibili, we are a more comprehensive general content platform. So in the past couple of years, we've seen products that's focusing on providing majority short form videos and they've experienced a quite decent growth rate.
But at the same time, Bilibili is also continuing to deliver high quality fast growth. So we believe any product that provides the content that fits users' needs, that haters' users' interests and preferences can win over their time. In the past 11 years, Bilibili has always been focused on the content ecosystem driven business model and to satisfy users' interest and need for high quality content. And this model has proven successful for us. So as a comprehensive video community, Bilibili actually, we believe, represents the future of video product, which we believe will be omni scenario and multi screen.
And that concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.
Thank you once again for joining us today. If you have any further questions, please contact myself, Julie Yang, the Uozu Senior IR Director or TPG Investor Relations. Our contact information for IR in both China and the U. S. Can be found on today's press release.
Have a great day.