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After "Social Empire" and "Game Giant", Tencent's next step...
In today’s digital landscape, one of the most pressing challenges for many local Chinese companies is determining which platform holds the largest user base and how to optimally allocate limited advertising budgets. This issue has become even more critical as competition intensifies and consumer behavior evolves rapidly.
Tencent, one of China's leading internet platforms, is addressing this challenge by leveraging its technological capabilities—advertising, cloud computing, artificial intelligence, and mobile payments—to help businesses reduce operational costs while boosting revenue. At the 2017 Tencent Smart Summit, COO Ren Yuxi emphasized this strategy, highlighting how these technologies can be integrated to create value for both companies and users.
The summit brought together key executives from Tencent’s online advertising, cloud, film, and AI divisions. Ren Yuxuan showcased high-quality products such as “Full-Time Master†and “King of Glory,†demonstrating how Tencent aims to provide comprehensive solutions to its partners and advertisers.
A notable trend at the event was the growing influence of Tencent in the advertising sector. Dylan, a veteran from a traditional 4A agency, remarked that Tencent has increasingly resembled an advertising company. With the rise of WeChat, social advertising has proven highly effective, prompting many agencies to rethink their strategies.
This year marked the tenth anniversary of the Tencent Smart Summit. Since 2008, Tencent has used the event to showcase its latest products and innovations, reflecting the company’s evolving business focus. From Weibo and Weishi in 2012-2013, to online video in 2014, and now cloud and AI services, the summit has served as a window into Tencent’s transformation.
Another significant change at the summit was the shift in leadership. Liu Shengyi, who had been a consistent presence in previous years, was reassigned to lead Tencent Advertising, while Ren Yujun took center stage as the new president of the Online Media Group (OMG). This move signaled a strategic realignment, with Ren now overseeing Tencent’s core businesses, including games, media, and entertainment.
The theme of this year’s summit was “One Tencent,†emphasizing the need for internal integration and resource optimization. Zheng Xianglin, Vice President of Tencent, explained that the goal is to combine technology, data, and content into cohesive solutions for users. The idea of “integration†has become central to Tencent’s strategy, aiming to break down silos between different departments and improve collaboration.
With the rise of “integration,†Tencent is positioning itself as a major player in the digital marketing space. Unlike traditional advertising agencies or e-commerce platforms, Tencent offers a unique combination of data-driven insights and a vast ecosystem of products. Its ability to track user behavior across multiple platforms allows for more precise targeting and better marketing outcomes.
As the market becomes more competitive, companies like Alibaba, Ogilvy & Mather, and Dentsu are also embracing integration to enhance their offerings. In this evolving landscape, the ability to gather, analyze, and act on data will determine who can deliver the highest return for brands.
Tencent’s vision of becoming a “universal advertising company†reflects its ambition to provide end-to-end marketing solutions. By combining content, technology, and data, it aims to offer brands not just tools, but complete strategies to engage and convert customers effectively.
As the industry moves toward greater integration, the race to build accurate user profiles and drive higher conversion rates is intensifying. For companies like Tencent, the future lies in seamless collaboration, innovative technology, and a deep understanding of user behavior.