In 1Q15, it grew 4% QoQ and 131% YoY to Rmb2724m (12% of total revenue). Performance based advertising reached Rmb1.3bn
(about 48% of online ads), up from Rmb1.1bn in 4Q14 and Rmb0.5bn in 1Q14. In terms of revenue contribution, we expect Qzone came first, followed by official accounts, affiliate networks and YingYongBao. In terms of advertisers, we expect official accounts have more advertisers than Qzone. For Weixin Moments advertising, we expect Tencent is in the testing stage in 1Q15 covering about eight ad categories such as auto, FMCG and handset manufacturers.
In 1Q15, smartphone games revenues, which include those distributed through Mobile QQ and Weixin game centers, grew 5% QoQ to Rmb4bn, in line with our estimates. In 2015, we retain our smartphone games assumption (excluding YingYongBao) to grow 58% YoY to Rmb20bn, thanks to the huge mobile gamer base (double that of PC games) and the diversification to mid to hardcore games.
