Chinese internet and mobile services firm Tencent's (0700.HK) Qzone SNS and blogging site has launched in-feed advertising for both PC and mobile versions of the platform. The new ad product utilizes a cost per click (CPC) billing model, and users will only see one in-feed ad per day after logging into their accounts in the current phase of the rollout. Increases to this frequency are expected as development of QZone in-feed ads progress.
An informed source has revealed that Tencent's Guangdiantong (GDT) ad exchange platform team is overseeing planning and operations of the new in-feed ad product on Qzone, which began closed beta testing in December 2013. GDT ads currently offer connectivity to 800 mln users on SNS platforms QQ, QZone, Mobile QQ, Qzone Mobile, QQ Show, and Pengyou.com.
QZone in-feed ads sold on GDT will allow for direct downloads of advertised apps. Advertisers are also able to link their ads to a verified Qzone page. Target customers for the in-feed ads are companies involved in the mobile app, e-commerce, gaming, and O2O businesses. An insider at GDT has stated that, during closed beta testing of the feature, the in-feed advertising platform recorded 200 mln impressions, with an average click-through rate of 2.5%.
Cost per mobile app download for in-feed advertisements through GDT is between RMB 1 and RMB 3.5. In-feed advertisements purchased recently by a well-known women's SNS resulted in 15,000 average daily downloads at a cost of RMB 2 per download.
Editor's Note: For more information on this topic, please see "Qzone Launches O2O Gift Giving Service," MD 11/22/13 issue.