New | China’s social networks set for boom, as advertising spending forecast to jump 56 per cent to US$5.33b this year
Tencent and Sina Weibo poised to benefit as advertisers maneuver to reach consumers through social media
Total advertising spending in mainland China’s social networks is predicted to hit a record US$5.33 billion this year, driven by campaigns run on the platforms of internet giant Tencent Holdings and Weibo Corp's microblogging service.
“Tencent and Sina Weibo are the two leaders in China’s social network advertising space on account of their strong user base, engagement and large mobile presence,” eMarketer forecasting analyst Shelleen Shum said.
Tencent’s widely popular social mobile-messaging platform WeChat — marketed as Weixin on the mainland — and online social networking site Qzone are the Hong Kong-listed company’s primary advertising vehicles.
“We expect the launch of Sina Weibo’s autoplay video ads this year will drive user engagement and appeal to advertisers with its targeting options,” Shum said.
E-commerce powerhouse Alibaba Group, which owns the South China Morning Post, is a major shareholder of Nasdaq-traded Weibo, which is often called “China’s Twitter”. Weibo's largest shareholder is internet media company Sina Corp.