Update: Tencent Microblog Launches In-Feed Ad System
TechWeb, 8/20/13
Chinese internet and mobile services firm Tencent's (0700.HK) Weibo microblogging platform has launched the company's new "Zhihui Tui" ("Smart Suggestion") in-feed ad system, allowing advertisers to purchase keywords and place ads in user news feeds.
According to Tencent, the company's microblogging service has 540 mln registered users and 81 mln daily active users. Tencent Weibo users refresh their news feeds an average of 20 times per day, with 30 new posts appearing upon each refresh, creating 1.5 bln ad placement opportunities per day. The Zhihui Tui system will place ads based on user habits and microblog content.
Zhihui Tui's in-feed ad system displays three primary types of ads: "keyword recommendation ads," "re-post sticky ads," and "sticky display ads." A description of the three advertising systems is as follows:
Keyword recommendation ads: When Tencent Weibo users post content containing advertiser purchased keywords, Tencent will recommend a related advertisers' promotion, inserting it below the users' post. Users have the ability to block these recommendations.
Re-post sticky ads: When users re-post ad messages, ads will appear as the first post in follower news feeds. The ad will disappear when follower news feeds are refreshed.
Sticky display ads: Tencent Weibo enterprise microblogging accounts can post a microblog-style ad on user home pages. The ad will appear only once for each user, and will disappear when users refresh their homepage.
According to a Tencent spokesperson, the company believes its Zhihui Tui system will serve as an effective public relations tool. If there is a problem with a product after it goes on sale, every time that product is mentioned in posts on Tencent Weibo, the manufacturer of the product can attach an explanatory post to help mitigate PR damage.
The Zhihui Tui in-feed ad system primarily employs a cost per engagement (CPE) pricing model. Currently, more than 500 advertisers have signed-up for the Zhihui Tui system. E-commerce, local listing, and other X2C service businesses are the most common advertisers on the platform. If advertisers purchase the same keyword, Tencent will employ a bid ranking model similar to online search companies.
Editor's Note: For more information on this topic, please see "Tencent Microblog Introduces In-Feed Ads," MD 8/13/13 issue.
Keywords: Internet Tencent 0700.HK microblogging online advertising SNS advertising
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