Tencent launched a new function, called Wexin Wifi connection, on the Wexin platform following a ~RMB300m investment in Wiwide, a commercial Wifi service provider currently operating 3,000 Wifi hotspots nationwide.
The new function enables Wexin users to access free WIFI hotspots provided by offline merchants cooperating with Tencent. Users access directly via their Wexin accounts, rather than manually keying in a password previously. We expect this innovation to significantly increase user convenience and willingness to access the free WIFI
Most importantly, we expect Tencent and its merchant partners to gain deeper offline behavioral insights into the Weixin user base, which should generate potential advertising and marketing value to both parties. For instance, merchants should be able proactively try to capture these potential customers with targeted ads and multiple value added service offerings. Meanwhile, Tencent will be able to use its highly developed backend capabilities to collect data and provide feedback to merchants, such as DAU on a merchant network, MAU, average user spend etc. by linking Tenpay/WeixinPay and other LBS functions.
3 Way Partnership - OTT App Provider, Internet Service Provider and Retailer.
