Tencent can stand on the line with Facebook in the advertising field!!!

 "If you're wondering why advertisers like Facebook's social ads, the answer is that the user data there helps to define the goal more accurately. And Tencent has more user data than Facebook. "One of the reasons for Tencent's $ 500 billion capitalization is intense competition within the corporation itself, in which teams compete to turn ideas into reality. However, now with the overall goal of becoming a powerful empire of advertising comparable to the world's largest social network Facebook, Tencent is eradicating this culture.

According to Lau Seng Yee, 7 major business units of Tencent are working together to synchronize data and research more than a billion users to deliver accurate and relevant advertising. of each individual.

According to eMarketer, Tencent's advertising revenue may more than double to $ 11.4 billion by 2019.

Based on user data - from the music they listen to, the news they read, to where they are coming from, Tencent brings potential advertising and market share in the $ 53 billion online advertising market. China. Achievements in the field of games and social media show that Tencent is not entirely dependent on advertising. At Tencent, advertising revenue only accounted for 17%, while Facebook ad revenue accounted for 97%.

In China, although Alibaba Group is dominating the digital advertising market, many investors believe that Tencent will grow in the future through social media marketing. This has helped Tencent's revenue double over Facebook and become the fifth largest capitalization in the world - reinforcing Tencent's leading position in China alongside Alibaba in the economy. The world is increasingly digitized.

According to eMarketer, Tencent's advertising revenue may more than double to $ 11.4 billion by 2019. Tencent's market share in China's digital advertising market is expected to increase from 9% to 15% .

Alex Yap, an analyst at JPMorgan Chase & Co. "If you're wondering why advertisers like Facebook's social ads, the answer is that the user data there helps to define the goal more accurately. And Tencent has more user data than Facebook. "

Social ads are ads based on information obtained from a user's network. This is still a new industry in China. Today, the industry accounts for only 10% of total digital marketing in the mainland, with a major share of e-commerce and search advertising. Lau expect the market will change. 

 According to Lau, "social advertising can play a bigger role." In China, Tencent is one of the pioneers in this field.

Lau has been working at Tencent since 2006. Prior to joining the advertising industry, he made Tencent a "giant" in content related to news, entertainment, sports and video. request.

At that time, Tencent's WeChat was widely used in China even though Tencent was almost "unknown" outside the mainland, especially in the US and Europe.

With Lau, in order to build an advertising business, it is important to balance your monetization efforts and avoid negative reactions from customers who are skeptical about providing too much personal information.

For example, at Facebook, to increase sales, the group increased its ad impressions by 50% last year. However, Facebook executives also warned investors that they could lose a significant amount of leads with so much advertising.

Therefore, Tencent chose to restrain and only show one ad per day on WeChat's "Moment" section (this item has the same functionality as Facebook's Message Boards). Thus, according to Morgan Stanley estimates, Tencent only earned $ 2.10 from each user operating on WeChat, while Facebook earned $ 30.10. 

 Tencent is likely to adopt a slower approach that is probably due to the gaming business it is making. Over 40% of revenue comes from this segment. Honor of Kings, a top-notch Tencent spin-off, was the top-selling game on iOS in China for a year, helping Tencent's revenue grow the most in seven years. . In addition, the company owns two other games that attract more than 20 million players in just a few weeks."

We are all WeChat users, and you do not want to be overwhelmed by unnecessary information," said Lau. I mean, we are not anxious, we are anxious to make sure we understand the user. "

To this end, Tencent has recruited an army of 250 computer scientists to expand the field of artificial intelligence, focus on natural language processing, image recognition and behavioral prediction. of the user. This investment has started: Tencent shakes hands with BMW to target high-end users based on their friends and where they visit, sending them WeChat ads - a channel they can put test drive schedule. Finally, advertising "turns into" sales. This is also the reason why Tencent also learn about hotels, restaurants and real estate.

With such a stormy pace, Tencent constantly recruited. The average age of Tencent employees is 29. 

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Much Love, Jimy Nguyen