Specialist
Former Senior Manager at Shenzhen Tencent Computer Systems Co
Agenda
- Online advertising trends, competition among major platforms and market share shifts
- Tencent’s (HKG: 0700) brand- and performance-based ads – growth targets, trends and driving factors
- Agents’ advertising strategies, delivering quantities on Tencent and different platforms chosen in Q1, Q2 and H2 2019
- Tencent Ads’ pricing and ad serving performance vs competitors
- Cooperation model and dynamics between major digital media advertising platforms and their agents
Questions
1.
What are the changes in online advertising in Q1 and Q2? Could you briefly analyse the market, compared with its performance last year? What are the changes in the shares of major market players and the changes in the competitive landscape?
2.
According to the financial statement of Tencent in Q1, the revenue from social ads and other forms of advertising reached RMB 9.898bn, a YoY increase of 34%. Media advertising generated RMB 3.479bn, an increase of 5%. But in Q1, the revenue from advertising decreased by 21%, compared with its revenue in the previous quarter. What is your view on the overall performance of Tencent Ads in Q1? What leads to its sluggish QoQ growth and the lower YoY growth rate?
3.
Could you introduce the increasing demand from advertisers in Q2, compared with Q1, in respect of performance-based ads placed on Tencent’s social media, and advertising on traditional media platforms such as Tencent Video?
4.
Based on the trend in Q2 and Q3, will the market share of Toutiao exceed that of Tencent?
5.
After Tencent’s adjustment, what are the specific advertising products and the media platforms of social and performance-based ads, and those of traditional media ads respectively? It appears that there is an overlapped part between the two kinds of ads. In addition, what are the goals or KPIs of Tencent Ads for Q1, Q2 and the whole year of 2019? How will Tencent Ads achieve its goals?
6.
Apart from traditional media, what is the proportion of the respective revenue of Tencent News, Tencent Video, WeChat Moments, official accounts and mini programs and QQ in terms of performance-based ads? Which is the main force driving the growth of ads business? Which part is lower than expected?
7.
We learn that Guangdiantong may have its resources at different platforms. How do we understand this product? From an agent’s point of view, how many ads clients deliver at Guangdiantong during 2018 and H1 2019? How about the YoY growth of ads at this platform?
8.
We used to think that Guangdiantong is a product that can compete with Toutiao’s information flow. What are the pricing for key accounts (KA) and SME clients plus the ads delivery effect? What do you think of the feedback from clients of Guangdiantong compared with Toutiao, Douyin and Baidu’s newsfeed?
9.
Can you introduce the revenues of Moments, official accounts and mini programs in 2018 and their growth trends and performances in Q1-Q2 2019? How do you predict their revenues in H2 2019?
10.
Tencent set the third-place advertising spots on WeChat’s Moments. You mentioned that online advertising spots in first- and second-tier cities can be sold out while these in third- and fourth-tier cities are difficult to sell. Can you give a detailed explanation?
11.
According to a report in May, the internal test for the third-place advertising spots on WeChat Moments in first-tier cities was completed at that time and these spots will be available for purchase later. Will these advertising spots be displayed to all WeChat users immediately or gradually?
12.
You estimated that the revenue generated by ads on WeChat’s Moments will increase by RMB 7.5bn from RMB 15bn this year. How did you make such estimation? Does the increase in revenue mainly benefit from the sales of the third-place advertising spots?
13.
Can you evaluate the ROI and ad delivering effect of clients who deliver ads on WeChat’s Moments, official accounts and mini programs?
14.
WeChat users see different ads on their Moments. Does Tencent utilise an algorithm to decide which ads will be displayed on WeChat’s Moments?
15.
What’s the trend of the CPM of ads on Toutiao and Tencent
16.
Is there any difference in the rebate platforms give to agents this year vs last year? Besides Tencent and Toutiao, are there any changes in the policies of other platforms?
17.
It may be a little difficult for every platform to achieve their targets because the overall situation is not good. Have Baidu and Weibo also made such commensurate downward adjustments, or is Tencent more obvious at present?
18.
Do you think there will be any early signs if the advertising industry rebounds? What kind of events will the industry pay more attention to?
19.
Do you think any of Tencent’s advertising distributors and agents perform particularly well or do not? How about Weimob? What is your personal opinion?
20.
What is the trend of Weimob this year?
21.
Do you think there are any new media or trends worth our attention? Is the landscape of short videos a foregone conclusion? What is the next noteworthy platform, or the media platform unexpectedly favoured by clients?
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