Market shifts in China’s online advertising industry
The specialist commenced the Interview by noting the changing trends that have occurred in China’s online advertising industry. He explored the breakdown in demand from various clients, explaining which areas had experienced growth and which were sluggish, as well as his outlook on the ability for companies with low demand to recover. The former Senior Product Manager also examined the contributory factors behind Tencent’s clients being more careful advertisement placements in comparison to last year.
Advertising spend for companies in the educational industry has risen dramatically despite relative inactivity in the advertising space, noted the former Tencent Product Manager. He delved into the market share between top platforms such as Toutiao and Tencent, expressing his thoughts on their market share battle in light of the different advertising budgets. Whilst the cost of lead generation on Toutiao is lower than that of Tencent, the specialist suggested that the latter platform could perform better for clients in the educational industry, which might have led to Tencent’s increased popularity here.
WeChat’s Moments function is highly popular, and this will only lead to increased revenue for the company, explained the specialist. The social media platform has opened a third daily advertising slot in user feeds, which could be partly behind the company’s revenue increase. However, the former Senior Product Manager warned investors that this could eventually hinder the company. He explained that the company runs the risk of offering advertising slots whilst the ability to sell these slots in third- and fourth-tier cities is uncertain.
The specialist continued by outlining the early signs investors should watch out for in order to gauge whether the advertising industry had recovered; Tencent’s advertising distributors and agents that have performed well; and Weimob trends.
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