Sina Games, 1/22/15
According to a leaked Power Point presentation from Chinese internet and mobile services firm Tencent (0700.HK), the WeChat mobile messaging app has accumulated 1.12 bln registered users across the globe since its launch. Monthly active users number 440 mln. Use of the "Moments" feed is quite high with 76.4% of users using it to check on their friends or post information.
The Power Point presentation also introduced advertising services in the Moments feed. Advertisements use a CPM sales model with prices set as follows: RMB 40 per thousand views in regular areas, RMB 140 per thousand views in core cities (i.e. Beijing and Shanghai), RMB 90 per thousand views in key cities (i.e. Guangzhou and Shenzhen). Each advertisement continues to display for 7 continuous days, and a new ad is pushed to a single user every 48 hours. WeChat Moments ads will, similarly to non-advertising posts, allow users to “Like” and comment, with each user receiving different ads depending on big data analysis of his or her past user behavior. Ads which receive no “Likes” or comments from users in the 6 hours after they first display will disappear. The minimum price for a WeChat Moments ad campaign is reportedly RMB 5 mln.
Tencent has selected 50 brand advertisers for an initial trial, with total ad budget for each to exceed RMB 10 mln. Automaker BMW will reportedly be the first brand to have an ad appear in the WeChat Moments feed.
Editor's Note: For more information on this topic, please see "Tencent Tests In-feed Ads in WeChat Moments," MD 1/21/15 issue.