8 Market Steps by China’s Tencent Corporate for Digital Advertising

China is one of the most exciting markets in the world for new technologies, and mobile data is no exception to the rule. According to an article by CKGSB Knowledge, “China has 1.3 billion customers, who are seeing their disposable incomes rapidly increase, and high rates of penetration for mobile internet.” By the end of 2014, the country had 649 million internet users out of which more than 557 million use mobile phones to go online.
In an AdWeek interview with Steven Chang, the Vice President of Tencent Corporate, Chang opened up about the company, its data spigot and the Chinese market. His ideas should especially be noted down by all marketers, as since he heads the company’s digital advertising and marketing operations, they can be used as an example to be implemented in their own business strategies.

Expansion is the key
The company owes much of its profits to ‘WeChat’, which went from having 700 million users in April to 760 million by June. Out of these, a hundred million of its active users are from outside China. The company calls this expansion ‘organic’.

Popular platform for news
Tencent’s ‘QQ.com’ is the leading news portal in China, while ‘Tencent Video’ is the second most used platform for viewing clips in the country.

Interaction-based interface and data for Marketers
WeChat gives Tencent extensive data on people’s personal connections and allows the company to chart who the ‘influencers’ are in each social group. That can help advertisers maximise their market spending by targeting those individuals. Tencent’s WeChat contains a ‘Shake’ feature on its app that allows a smartphone user to shake his or her device to connect with another user nearby.

Online advertising employed well
Although online advertising is only a decade old in China, the practice of using mobile-banners is working quite well with the users.

QR coding
Much like Mobile-banners, QR coding is on the rise in China while it usage goes down in the rest of the world. For the layman, a QR code is the trademark for a matrix barcode – a machine-readable optical label that contains information about the device to which it is attached.

Equaling western advertising technology
Last year, Tencent made its debut in the realm of native advertising, which was compiled in WeChat’s Moments Section. Chang explains how Tencent has started to utilise big data to work with clients on their CRM needs.

Expand your global horizon
Chang says that Tencent is reigning in big on the global markets, partnering with a fair share of big agencies that are part of the 4As. According to him, the company is trying to improve and effectuate its marketing and advertising hacks as well by taking out inputs from these companies and their business relationships.

Endorse a lookalike-based data-marketing model
Tencent is currently utilising a lookalike-based data-marketing model, much like the one used by companies like Facebook and Google, to help in the process of client marketing. The company aims to “embrace and educate” its global customers in terms of exciting opportunities and more, keeping them coming back for more.

According to ADG’s Sullivan, Tencent could have the most valuable big data resources of all three companies because of its massive WeChat social networking app, the resources that Alibaba and Baidu lack.

Facebook bans Adblockers – focus more on relevant ads

Facebook is going to make all of its users look at ads, even if they have ad-blockers installed.

The site says that it will now use special software that will stop people from being able to block ads, and force them to appear on people’s browsers. Facebook said that it understood why people used ad blockers, which it claimed was primarily motivated by people being annoyed by bad ads. But the company needs to show people ads to keep making money, it said, and will look to fix the problems that made people installed the extensions on their computer.

Early this year The New York Times website showed a message This read: “The best things in life aren’t free”. It went on to explain that “advertising helps us fund our journalism” and gave the visitor two options to read the newspaper’s online content: disable their ad-blocking software or pay for a subscription.

Many angry internet users took to sites such as Twitter and Reddit to vent their frustrations: “It’s not OK to show me ads that detract from your website design and make it ugly,” said one. Others argued that ads were more than just an irritation as they could compromise user privacy and security.

Start-ups such as Sourcepoint and Secret Media now offer publishers ways to surpass ad-blocking software. Another of these, Oriel, in June launched an anti-ad-blocking tool for WordPress, the content management system and blogging platform used by more than 60m websites. This will allow small bloggers as well as large media companies to take action against blocker software.

Similarly, Sweden’s biggest publishers will join forces next month to call the ad blockers’ bluff. In a month-long experiment the publishers will collectively block people who use ad blocking software. The idea is that by acting en masse, they will be able to turn the ad-blocking tide.

Social Media Advertising – Powerful Player in 2016

Social media has come a long way. However Social Media advertising started to gain popularity only in the last 3 years. Facebook launched its advertising options only in 2005 and by 2015 social media advertising revenue has grown to $8.4 billion

Banner ads have been industry favourite for a long time now. But in the recent years banner ads have started to see a decline. As an immediate alternative, paid search is a great online advertising medium for returning visitors based on user intent (visitors’ search query). However, there are two other questions that businesses must address which cannot be tackled by paid search ads.

  1. What if there no such user intent keywords that one can use to bid to drive traffic?
  2. How can one capture traffic for brand awareness and not just user intent

Social media advertising helps companies find relevant clients by providing audiences’ shared information to identify their purchase intent. Instead of targeting users who search a certain term, social media advertising reaches out to relevant audiences based on their past behaviour before they initiate a search. Social networks are a good option for advertisers because of the advanced targeting options, reliable conversion tracking, and prevalence on mobile devices.

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User interest targeting: Based on the users’ past search behaviour, activities and pages that they have visited, advertisers reach out to specific audiences.  Interest targeting is often related to keyword targeting. Interests can be as general as an industry (e.g. automotive industry) or as specific as a product (e.g. convertibles).

Behavioural targeting and retargeting: With the behavioural approach, advertisers can reach to people based on purchase behaviours or intents and/or device usage. Advertisers can also reach people who have a executed a specific search that maybe related to the advertisers’ service, product, app, group, or event.


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When deciding which channels to use to grow business in the coming years advertisers must try social media advertising as a supplement to their existing growth strategies.

US Digital Advertising in 2016

US digital ad spending in 2016 is forecasted to grow up to $32.17 billion which is a 23% increase as compared to the year 2015. Spend on rich media and video will see a rise of 36.4% and 28.5%, respectively. Rich media’s growth will be driven by growing adoption of “out-stream” and in-feed video ad formats, while video will grow due to publishers looking to capitalize on high-demand, high-value in-stream video ad inventory. (Source: eMarketer)

The growth of digital advertising, are predicted based on the growth in mobile advertising. For the first time in 2015, ad spend was more on mobile devices than desktop. As everyone spends more time on mobile, with three hours and eight minutes spent per US adult daily this year, this trend will grow. The percentage spend on mobile is forecasted by eMarketer to grow to 63% this year, 70% (or $65B) by 2019. When we look at mobile advertising, the growth of Facebook, Twitter, and Instagram are the largest factors. Facebook is predicted to reach $6.3 billion in mobile revenue in 2016, more than 3x the mobile ad revenue of Google.

Digital Ad spend

The demand for programmatic ads across multiple platforms including desktop, mobile apps, and mobile web is surging. It is becoming critically important for advertisers to engage with their customers across multiple channels. Advertisers are leveraging Facebook, Twitter, and other social media sites to align advertising to the behavioural targeted data to reach out to specific consumers. In 2014, 5.6 billion of display advertising was purchased programmatically/ technology platform and an API. In 2016, 67% of all display ads will be purchased programmatically. Mobile programmatic ad revenue will reach $9.3 billion this year according to eMarketer.

Next Big Trend in Mobile Advertising

This is the post excerpt.

If one has noticed the nature of mobile ads (mostly in apps), it is not a very effective medium. The ads that pop up in-between a game or information is perceived as a interruption rather than a piece of related info. And with the rise of ad blockers, marketers are forced to ponder about how to launch an ad as an experience on a mobile device. The solution is Content Marketing.

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Content marketing can resolve the poor advertising experiences. Content marketing is anything such as blogs, articles, reviews, e-books, graphics and videos. It is a medium to exchange information value between brands and consumers. Companies such as Coca Cola and Microsoft have made a huge shift in their marketing budgets to spend more on content marketing focusing over a quarter of their budgets on these types of strategies.

Difference between display advertising and content advertising

  Display Advertising Content Advertising
User Friendly Large screen video ads and interactive banners that interrupt the viewing experience Users who want to read relevant articles access content sites
Branding Vehicles User’s perceive an ad as a motive to sell a product or service Content marketing is designed to deliver a more meaningful experience to the consumer without any strings attached
Attention span Consumers last an average of 1.6 seconds on a display ad Consumers spend almost 345 times longer engaging with branded content
Engagement With a shorter attention span it is highly unlikely for a consumer to recommend the product to a friend With an option to share a blog or a review on the social media sites, there is a greater chance for consumers to spread a product or service news to others.

Content marketing is surely here to stay but it is very important to provide rich content experience that focus less on their brand and more about creating a true value exchange. Great content marketing should also be a combination of sponsored content and consumer generated content. By allowing consumers to socialize with the brand and likeminded peers, share their opinions and–in some cases–become content experts themselves–all parties win.

Glispa Group Acquires Brazilian Mobile Advertising Leader MOBILS

Latest News

GlispaGlispa Group, Berlin based performance marketing company today announced their plan of expanding in the greater Latin American market and that they have acquired mobile ad marketing leader MOBILS, Sao Paulo, Brazil. Source: PRNEWSWIRE.

Glispa and MOBILS began their LATAM partnership earlier this year, where glispa provided technology, tracking and operations support to MOBILS’ mobile advertising initiatives. After several months working together, the two companies noticed many synergies between their solutions and became focused on forming a long-term partnership.

MOBILS is focused on providing a full suite of mobile advertising solutions to meet the demands of premium publishers, apps, games and ad networks. Through its AD, APP and INAPP solutions, MOBILS increases user downloads and engagement, drives organic traffic to optimize user retention and purchase, and seamlessly integrates native ads that boost click through and conversion rates. Source: GLISPA Press Release

Mobile ad market is expected to grow to nearly $133.7 billion by 2017 which is a 94.7% growth from 2015 (Source: eMarketer). With this growing trend, powerhouses such as Glispa who reach to billions of mobile and web users are acting appropriately to benefit their growth and reach. The company has had a promising year in 2015:

  1. The last seven fiscal years, Glispa has witnessed a consistent rise in their profits.
  2. Set up a new global headquarters and innovation campus in Berlin.
  3. 30% of the company’s employees are dedicated to product and engineering (data science/ machine learning).
  4. 40% of their business is of native advertising and monetization solution.
  5. Won the 2016 Inc. 5000 Fastest Growing Private Company in Europe award.
  6. Closed the year 2015 with a revenue run rate of $100 million.
  7. Gained a good share of profit even though their competition has been with other performance-based market leaders such as Facebook.
  8. “Glispa audience platform that is designed to take 100 TB of raw data has contributed to significant growth in 2015.” (Gary Lin, CEO, Glispa).

This acquisition has been a strategic initiative by Glispa. One must pay a closer look at the company’s developments henceforth. However with such a move, Glispa is definitely on its move to capture their untapped markets around the world.