On March 21, Tencent released the Q4 financial report, which is closely watched. From the specific data, Tencent still maintained rapid growth during the transition period.Mini Electric Scooter Manufacturer The advertising revenue in the fourth quarter of last year was RMB 17 billion, an increase of 38% over the same period last year. It increased by 44% year-on-year to 58.1 billion yuan. According to relevant media reports, in 2018, today’s headline product advertising revenue reached 50 billion yuan, of which today’s headline 29 billion, vibrating 18 billion. For Internet companies, online advertising is an important part of total revenue. Taking Facebook as an example, the company’s 2017 advertising revenue was $39.9 billion, accounting for 98.2% of its total revenue. Among domestic companies, the advertising business contributed more than 90% of Baidu’s revenue, accounting for more than 50% of Alibaba’s revenue. In contrast, Tencent’s online advertising revenue in 2017 was RMB 40.4 billion, accounting for only 17% of the company’s total revenue. Does Tencent really encounter bottlenecks in advertising revenue? The answer is of course not. According to the analysis of Wall Street Institute, if the number of WeChat users is calculated by Tencent, the ARPU (average revenue per user) of Tencent Advertising is far lower than that of Baidu and Ali, and lower than the level of Facebook Asia Pacific. Mini Electric Scooter Suppliers In the long run, Tencent’s number of users is not inferior to any other company, and the efficiency of advertising has a lot of room for improvement.
As the “king of society” Tencent’s WeChat, QQ and Sina Weibo occupy the dominant position in the social advertising market. In 2017, Tencent’s online advertising business revenue was 40.4 billion yuan, a year-on-year increase of 49.9%. Social advertising revenue increased by 70.2% year-on-year to RMB 25.6 billion, mainly due to the promotion of new advertising formats of WeChat public account and circle of friends. However, the growth of these two types of advertising revenue is only the tip of Tencent’s iceberg. If you look closely at Tencent’s Q4 financial report, you will find that there is still a “ambition” that has accumulated for a long time. In addition, the WeChat applet will become the new core driver of online advertising revenue. The most eye-catching data in this financial report is the small program that has created more than 500 billion yuan in commercial value by the end of 2018. In 2018, it provided users with more than 100 billion business and government services, and the transaction amount increased by 6 times. As of the end of December 2018, the daily usage frequency of small programs increased by 54% compared with last year, and the retention of large-day users increased from 34% to 54%.Mini Electric Scooter Manufacturer in China
“Restricted advertising” is only for a better user experience
If you carefully observe Tencent’s development of the advertising circle for friends, you will find that it is cautious and less temperate in generating income. Although the demand for advertisers is very strong, until the end of March 2018, the amount of advertising on the WeChat circle of friends increased to no more than 2 per user per day.