Tencent Holdings announced that Q4 2016 advertising revenues jumped 45% compared to Q4 2015. A fifth of the Chinese Internet company’s revenue now comes from advertising.
Given the success of its WeChat app and the expansion of its functionality, Tencent is now one of the most valuable Chinese brands according to a BrandZ ranking by WPP and Kantar Millward Brown. WeChat currently has a whopping 889 million active users. However, the majority of its users continue to be China-based as rival WhatsApp has conquered more of the overseas market.
Overall quarter sales jumped to $6.37 billion, an increase of 44% year on year.
Online advertising revenue reached $1.2 billion during the fourth quarter, up 45% from the previous year. Adverts across WeChat also presented a solid opportunity with Tencent saying that the number of advertisers joining Moments (the WeChat newsfeed) more than doubled in just four months.
In particular, ads coupled to news on mobile devices drove an increase in ad revenue. Whilst performance advertising jumped 77%, brand ads were up just 11%.
In addition, the company has been busy creating a payment platform similar to Alipay. According to the financial release, the company surpassed 600 million mobile payment monthly active user accounts and average daily transactions at the end of 2016.
Mr. Ma Huateng, Chairman and CEO of Tencent, said in a statement:
“Looking ahead, we will seek to deliver superior experiences to our users and to create business opportunities for our ecosystem partners through the further implementation of our ―Connection‖ strategy. We will also invest heavily in cutting edge technologies such as security, cloud, big data and AI so as to position us for the next wave of growth.”