Posted On 2017/09/12 By In News, Internet, Mobile, Social Media With 409 Views

China’s Booming Outbound Tourism and growing Mobile Ad Spend offer more Room for Ad Growth

A growing Chinese mobile ad market and China’s booming outbound tourism are growth drivers that Tencent’s popular messaging platform WeChat is well positioned to capitalize on.

Apart from mobile gaming, online advertising is a major growth driver for Tencent. Tencent’s latest earnings report showed that online advertising revenue rose 55% to 10.15 billion yuan, helped by a 61% rise in “social and others advertising” revenue, mainly from WeChat advertisements. There is plenty of scope for Tencent to grow this area of its business.

Ad revenues drive most tech companies’ revenues; however, for Tencent, the opportunity is still relatively untapped. Despite having 963 million monthly active users, approaching half of Facebook’s (NASDAQ:FB) 2 billion, Tencent is forecast to rake in just US$7 billion in ad revenue compared to Facebook which is forecast to earn US$36 billion, according to eMarketer.

China is the world’s second-largest advertising market and 57.2% of that expenditure will go towards online advertising – a significant increase from 5 years ago when online advertising accounted for just 19.4% of overall ad spend in China.

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Article: Seeking Alpha / Image: Cory M. Grenier

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Stefan (from Austria, Europe) has been living, studying and working in China since 2010. Stefan has worked on several research, publication and consulting projects focusing on the China Travel Market. He holds three Masters degrees and is an expert on China Outbound Tourism, Marketing and Social Media in China. Stefan works with BMG on the Global Ready China Seminars as well as the Global Ready China News and related projects. He also has teaching engagements in the areas of eMarketing and Tourism Strategy.

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