"Video accounts has become one of the most popular short video services in China with substantial user engagement," Martin LAU, president of Tencent, told analysts.
"Strategically, they allow us to expand our ad market share. As advertisers have already been spending aggressively on multiple short-form video platforms, we should be able to capture more advertising budgets."
Lau said it took five quarters for WeChat Moments, a social feature where users can post pictures, videos, and status updates, to reach 1 billion yuan ($147.42 million) in quarterly advertising revenue. He said that Video accounts will reach that goal more quickly given the "current size of traffic and already strong advertiser demand for short form video ads."
Limited Run Games, Gioteck, and Singstrix have all been acquired under Freemode, suggesting the new group will have a focus on physical media and hardware. Freemode will also include Japanese studio Tatsujin, which is led by developer Masahiro Yuge, one of the founders of classic arcade developer Toaplan. Bitwave Games, which describes itself as a "modern retro game studio" has also been acquired under Freemode. The Middle-earth Enterprises purchase is also a part of Embracer Freemode.
Tencent runs the ubiquitous Chinese messaging app Wechat. The company has a short-form video feature within the app and has begun to monetize that through video ads in the feed. Tencent said such ads could become a “substantial” source of revenue in the future.
The focus on this advertising product from one of China's biggest technology giants puts it in direct competition with the country's two leading short video players: ByteDance's Douyin, the Chinese cousin of TikTok as well as Kuaishou.
On Wednesday, Tencent reported its first ever year-on-year quarterly revenue decline as its gaming business faced headwinds. Tighter tech regulation, Covid's resurgence, and the subsequent economic weakness in China weighed on the overall company.
Tencent runs China's most popular messaging app called WeChat which has over one billion users. There is a short video platform built within WeChat. Users can scroll through different videos. In July, Tencent for the first time began serving ads to users in that service it calls video accounts.
the potential of video ads, underscoring how important the revenue stream could be.
"Video accounts has become one of the most popular short video services in China with substantial user engagement," Martin Lau, president of Tencent, told analysts.
"Strategically, they allow us to expand our ad market share. As advertisers have already been spending aggressively on multiple short-form video platforms, we should be able to capture more advertising budgets."
Lau said it took five quarters for WeChat Moments, a social feature where users can post pictures, videos, and status updates, to reach 1 billion yuan ($147.42 million) in quarterly advertising revenue. they allow us to expand our ad market share. As advertisers have already been spending aggressively on multiple short-form video platforms, we should be able to capture more advertising budgets. He said that Video accounts will reach that goal more quickly given the "current size of traffic and already strong advertiser demand for short form video ads."
"Video ads will eventually grow into a substantial revenue source for us over time,"
Hence This Article Is Made By Myself And Unique
You must be logged in to post a comment.