On August 4, WeChat quietly added one more function allowing brands to connect Moment Ads with e-commerce function, according to Chinese tech media Ebrun.
This is significant because, in the past, luxury brands have been using WeChat Moments (similar to Facebook’s newsfeed) Ads for event registration and more. Now they can try to invest in e-commerce ads for a better return. The ads are similar to an Instagram “click to buy” ads used to attract stronger purchase intention.
WeChat encourages merchants to create e-commerce shops with the B2B template tool Youzan, the one-stop-shop for merchants to set up the visual, merchandise, shipping, and even coupons on the WeChat store. To do this, companies would need to fill out a registration information online to verify their organization is located in China. And for those who already have their e-commerce shop, they can simply link it to their WeChat Moments Ads.
Ads on WeChat are an important revenue stream for Tencent. For brands, however, it’s a comparatively much pricier option than Tencent’s other advertising channels on a CPM basis (cost per thousand impressions), such as Qzone or WeChat banner ads. The minimum budget for one advertising campaign on WeChat Moments is $7,454 (RMB 50,000). Though with all the different advertising options WeChat now offers, brands may wonder what their return on investment may be beyond exposure. Perhaps this new e-commerce link could be an alternative sales channel for brands.