WeChat to Add News Feed Ads, Tencent Eye’s Growing Chinese Mobile Ad Market!
WeChat is one of Tencent’s most popular chatting applications, and the latest news about the product is that it will be having more ads placed into its news feed. Tencent has around 550 million users, with most of them being in China. Part of the reason for adding more ads into the app is that Tencent’s growth has slowed a little bit over the past quarter.
Tencent currently has most of its growth coming from online and mobile games, and currently does not use that much advertising in its products. WeChat first introduced ads last year. However, they were only displayed on the official pages of brands and other corporate companies. The most recent addition of ads being allowed in the news feed, where users see photos and posts from their friends, means that more users will likely be able to see and engage with the advertisers advertisements.
Overtime, Tencent says that they are planning to introduce a number of different ad formats. China’s mobile ad market is expected to double to 61 billion yuan this year, and more than sevenfold to 220 billion yuan by 2018. So, Tencent wants to get in on the action early. Tencent is facing fierce competition from other Chinese companies such as Baidu and Alibaba. Currently, Baidu has most of the share of the advertising market on both the PC and mobile platforms.
Many investors think that Tencent will see a lot of success with their advertising offerings. Users typically open WeChat many times per day, which means that advertisers will have a lot of opportunities for users to see their ads. In China, WeChat is used for much more than just sending messages. You can also use it to play games, hail taxi’s, and even buy tickets to many sporting events. This year, Tencent’s advertising revenue is expected to double to around 16 billion yuan.
In addition to the ads in news feeds, Tencent is also hoping their mobile payments platform will take off as well. Users can use WeChat to pay bills, as well as chat with their friends. Because of the diversity of WeChat in China, many people think that the new advertising initiatives Tencent is putting forth will help the popular app continue to succeed over the long term in China and around the world.
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