Tencent decided to bet on short video service and advertising in it

Tencent decided to bet on short video service and advertising in it

The Chinese company Tencent stated that advertising on its own short video platform could be a source of income, which is particularly relevant for a technology giant who has encountered problems in other business areas.

On the eve of Tencent reported the first-ever decline in revenues, including the tightening of Beijing's gambling policy, a series of pandemic locodowns across the country, and a slowdown in the economic growth of the entire PRC. One of the company's most important assets is WeChat, which has long been a super application with an audience of 1 billion users.

The experiment was so successful that Tencent decided to expand its advertising resources. Martin Lau's president, the company's quarterly promotional revenue. In his view, a video account service on the platform would be able to reach this rate faster, as indicated by the volume of traffic and demand from advertisers.

The question is really relevant for Tencent, whose online advertising revenues over the past quarter fell by 18% and amounted to 18.6 billion Yuan — the cost of promotion has been reduced because of the country's macroeconomic problems. In QuestMobile, short video services are seen as providing 39% of China's digital advertising revenues, and news resources and social networks are bringing down. Today, Alibaba has also turned to the video segment, which attracts celebrities to sell products on the site, combining short videos with live broadcasts. It is also considered to be promising, but it will take some time to access it. Now, the company is planning to increase the awareness of users and advertisers of its TikTok alternative.