WeChat Management's tone suggests ample upside for P4P advertising (especially WeChat), along with slower brand advertising due to rising video subscription, and macro slowdown was not the key reason for slower growth. In 2016, company is increasing its monetization of WeChat Moments with 3 ads per day (vs 1 per day perviously) per user -- a level that it believes won't result in large deterioration of user experience and is the same as Qzone's.
The company is focusing on building better AI technology for retargeting and enhanced tools for advertisers (particularly SMEs) to do performance-based advertising. We note that one of the reasons for slower brand advertising was users' paying for ad-free content through subscription services. This had led to slower brand advertising growth on its video platform. In terms of Tencent's app store, it is taking market share from traditional app store players like Baidu and Qihoo.
