Chinese internet giant Tencent aims to increase advertising income by using artificial intelligence and branded virtual costumes in video games, but is reluctant to put more advertising on its flagship WeChat social network, according to the group’s executive in charge of digital advertising.
Ad revenues drive earnings for most of the tech world, but not in China. Tencent’s WeChat network is approaching half Facebook’s 2bn users, but digital ad revenues this year are forecast at under $7bn, compared with the US social media group’s $36bn-plus, according to eMarketer.
Tencent, the world’s eighth biggest company by market capitalisation, generates most of its revenues from video games such as the smash hit Honour of Kings — the world’s top grossing title — but hopes to shift towards advertising, now less than 20 per cent of revenue.