Cheetah Mobile, the Chinese mobile internet company, has announced an expansion to its partnership agreement with Tencent Computer Systems Company Limited, to increase the annual cap for promotional service fees payable by Tencent and subsidiaries to Cheetah Mobile.
Cheetah expands agreement with Tencent
Due to high demand for Cheetah Mobile’s mobile ad services on Tencent’s advertising platform, Tencent promotional service fees stood at over $33m for the first nine months of 2015. Given the strong growth of its mobile ad platform, fees payable by Tencent are expected to increase. The new supplemental agreement puts in place an annual cap of $53.4m.
Up to this date, the cap has not been exceeded, according to the companies.
Mr. Sheng Fu, Chief Executive Officer, Cheetah Mobile, says:
“We are delighted to see our strong partnership with Tencent further expand, especially the growing demand for our mobile advertising services on the GDT ad platform. Our partnership with GDT has helped us extend our advertiser reach and monetization capabilities in China by allowing advertisers to place their ads on our mobile apps through GDT’s ad platform. It is truly a win-win situation for advertisers, GDT and Cheetah Mobile. Looking ahead, we remain committed to working with our partners worldwide and delivering some of the best mobile ad solutions available to advertisers. We are confident that our large and growing global user base will benefit our partners and advertisers, while enabling us to become a leading global mobile advertising platform.”