The Fundamentals of Tencent Advertising in China Part 2

The Fundamentals of Tencent Advertising Part 2

The real power of Tencent can only be understood when it is viewed and utilized not just as another advertising channel but as a rich ecosystem that provides unparalleled opportunities for brand exposure. Advertisers that are able to understand the core functions of this system can launch a wide range of campaigns that all complement one another.  In Fundamentals of Tencent Advertising part 1, we went though the different platforms and advertising formats that Tencent has to offer.  In part 2, we will pay special attention to what the Tencent advertising technology is and how it can positively impact your business in China.

Tencent’s DMP Tool

A data management platform (DMP) is a centralized platform that brings together data from all of Tencent’s advertising channels, platforms and touchpoints. Types of data include demographic and geographic attributes, mobile app identifiers, online history behavior, and user interests. This platform can help you aggregate diverse kinds of consumer data to gain a complete understanding of your target customer.

Tencent’s DMP Tool

Tencent’s DMP works by helping you manage customer segments through Tencent technology. You can use remarketing, conversion statistics, keywords, and data tags to create your own target audience and find new users via Tencent’s system. Some of the main features that Tencent’s DMP offers include:

  • Data Links: The data link feature helps you add value to all of the first-party data.

  • Crowd Management: This supports the creation of various forms of private crowds to help you perform more accurate crowd management by pushing in-feed ads or video ads to a segmented audience that will most likely turn into conversion.

  • Smart Insights: Helps you gain more insights into your target audience and improves marketing effectiveness.

  • Open Security: The API interface and secure data structure keeps first-party data transmission secure for your marketing campaigns.

Tencent’s oCPA

Optimized CPA (oCPA) is a smart automated bidding strategy for performance marketing. It provides advertisers with automatic optimization based on their performance goals and bids, and constantly improves your overall advertising efficiency. The strategy starts by selecting a specific optimization goal such as mobile advertising and providing the average price you are willing to pay for the delivery goal. oCPA then is used to estimate the conversion of each bid and will continue to automatically optimize based on your conversion data.

Main features of oCPA include:

  • Simplified Process: You only need to provide the average conversion price that you expect to achieve. This saves on the additional cost of advertising optimization investment.

  • Smart Bid Calculation: This accurately estimates conversion values that are based on machine learning and works to continuously improve delivery efficiency.

  • Direct delivery: The system is designed to directly help you get more conversions at a controlled cost.

Tencent’s Dynamic Merchant Ads

Dynamic merchant advertising is a tool that helps you improve the efficiency of your advertising and marketing conversions. Once you set the system to your liking, you can recommend products or services that match your needs for different types of audiences. This also lets you reduce the cost of advertising production while increasing your conversion rate. Dynamic merchant advertising is great if you want to provide your target audience with many different products or services.


Tencent’s Dynamic Merchant Ads


Main features of dynamic merchant ads include:

  • Accurate user reach: By leveraging Tencent’s resources, these types of ads can reach most domestic users with precision while collecting data from Tencent’s social relationship chain.

  • Large-scale data processing: Based on the DMP’s access to real-time user behavior, merchant ads can gather tens of millions of real-time product click-through rates and conversion rates estimates.

  • Automatic smart bidding: Combines with the communication of oCPA technology, automatic intelligent bidding is based on the conversion target and product goals.

  • Multi-dimensional product recommendation engine: Has an intelligent selection of recommended products for different optimization goals that is based on deep learning.

Tencent’s Tagging System

Tencent’s tagging system allows for comprehensive audience characterization and insights. The labeling system makes it possible to precisely target ads. You can use the system to combine characters and behaviors of users to make different segments. Through tailor-made user segments, you can expand your customer base and match specified characteristics to similar users while still being able to cater for individualized needs.

Tencent’s Tagging System

Types of tags include:

  • Demographic labels: This can be used to target based on age, location, education, marriage status, work status, and personal assets.

  • Interest tags: Includes business interests, entertainment interests and other personalized interests.

  • Device tags: Brands can segment information based on device type including brand, operator, model, and operating system.

  • Behavioral tags: This tag covers the basic behaviors of social interactions such as e-commerce shopping, O2O, game usage, and other app usage.

  • Industry tags: This tag type separates users based on different market industries, which improves the overall advertising effectiveness.

  • Custom tags: Brands also have the ability to make customized tags based on their specified needs and according to their own brand data.

Today, a lot of businesses are unfamiliar with everything that the Tencent ecosystem can offer when it comes to creating authentic brand exposure. One of the many benefits of Tencent Advertising is that it gives brands a heightened and streamlined opportunity to engage audiences. This can lead to more growth, a higher retention rate, and eventually more sales – all by simply utilizing the entire Tencent ecosystem to your advantage. If you dedicate time to learning how to use the Tencent network as a whole, how it operates, and test your ads, you can definitely find some advertising success. We also understand that Tencent advertising can be a lot to digest, so don’t hesitate to contact us if you would like a more in-depth understanding on any of our Fundamentals to Tencent Advertising articles.


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David Henriques

Digital entrepreneur and co-founder of Sekkei Studio, a digital marketing agency in Shanghai, Paris and Hong Kong. More than 10 years of experience in helping the communication of foreign companies in China.

The Fundamentals of Tencent Advertising in China
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