Tech leader Tencent’s GenAI lets advertisers generate ad visuals from text prompts, contributing to a significant revenue surge.
Tencent‘s latest financial reports are in, and they’re painting a picture of robust growth – a solid 10% year-over-year increase in total revenues, amounting to a substantial RMB154.6 billion (US$21.5 billion). What’s fueling this growth spurt? It’s Tencent’s smart use of GenAI in the advertising realm, resulting in a remarkable 20% increase in online advertising revenue alone.
At the heart of Tencent’s GenAI strategy is Tencent Hunyuan, a proprietary foundational model. It’s now an integral part of their products and services, giving advertisers the power to generate advertising visuals dynamically from text prompts. This innovation has struck a chord, particularly in the local services and FMCG sectors, playing a pivotal role in the revenue surge.
Even in the face of challenges in the tech landscape, Tencent’s steadfast commitment to GenAI continues to pay off. Not only does it supercharge advertising effectiveness, but it also beefs up their product lineup. Take, for instance, Tencent’s value-added services – covering online advertising and business operations – they grew by 4% year-over-year, reaching RMB75.7 billion (US$10.4 billion). Moreover, there’s been a significant uptick in video views and music subscriptions on Tencent’s platforms, underscoring just how appealing their services are.
What’s more, Tencent’s international gaming division saw a 14% revenue hike, thanks in part to hit titles like PUBG Mobile and Valorant. Meanwhile, their domestic games division clocked a solid 5% growth, driven by new game releases and the stellar performance of existing titles.